[scarface74]

And “successful enough to last ten years” says nothing about whether they actually make more than median wage in the US or how much capital they put in to start their business.

Most “independent business owners” who own franchised locations for instance have owners who work 50-60+ hours a week, and have spouses and their children providing free labor.

If you look at the net income of most franchise locations, they average around $60-$70K berz

[epups]

The question is not whether they make more than median wage actually, if you want to nitpick. It's whether they make more than they would as an employee. Yes you need capital and that's part of the risk. Also reducing the argument to be about "franchise owners" is a strawman.

[scarface74]

Is it really a “success” as a business owner to make less than the median wage and have to put capital at risk? No serious investor would settle for less than average return and not have a risk premium.

[epups]

If you work at a bakery and earn minimum wage but somehow save enough to open your own shop, the fact you may now earn less than median wage is not relevant. Do you understand now or would you like me to draw you a picture?

[scarface74]

How much does it cost to start a bakery? What would be the future risk adjusted cash flows of opening a bakery compared to just putting the money in risk free inflation adjusted bonds? What’s the relative risk of putting the money in an index fund?

And no I’m not just throwing out financial terms. I’m a proud MBA dropout (undergrad in CS)

How would that have turned out if you invested that money in your own store and opened it in February 2020? What happens if you open your store next to a store like Walmart or in a mall next to one of the major chains and they closed or moved reducing foot traffic (saw that plenty of times)?

If you can save up enough money to open a store, you can also save up enough money to go to technical school and learn a trade that is a lot less risky.

[epups]

I'm not sure whether you're willingly obtuse or just obtuse, but I also don't think it matters.

[scarface74]

These are all standard questions that you should ask before making any investment and questions any experience investors are going to make.

[nosianu]

I think before accusing others you should have a hard look at your own comments.