The Rise of the Entrepreneur

During the most recent economic boom, time and again I heard the word Entrepreneur thrown around and witnessed many attempts at motivating a young generation to enter into business and try and make something of themselves.  Arguably I think those attempts were in vain and for many reasons, but one reason more than any other took precedence as to why I believed this was in vain and that reason was that people were comfortable.

There is no greater discouragement to reach higher than complete comfort.  We lived amid an economic boom and in those times people are content with progressing their careers, and relying on corporations etc to provide opportunities.  To be an Entrepreneur you need to have ambition, motivation and above all else a desire to succeed at whatever cost.  You need to be constantly thinking of ways you can advance and progress higher.  When you see something that is going to waste you need to forget the idea of viewing it as rubbish and see it not for what it is but what it could be.

The Age of the Entrepreneur for this reason more than any belongs inescapably within era of economic tragedy / depression / recession / downturn / credit crunch - call it what you will.  There is no greater encouragement to try and rise up than to strive to prove those wrong who label you as lost.  It is in times of economic uncertainty when corporations turn their back on the people, cut jobs and opportunity is rationed that the Entrepreneur will rise.  When the last man has said no when you ask for help, then you must face the inescapable truth - if you want it, you have to do it yourself.

To be an Entrepreneur is not for everyone, there are those in a time of economic uncertainty who will truly be lost, but that is not their fault - this is how Capitalism works.  You cannot sustain growth indefinitely there must be a crash periodically to reset the base level from which grow.  It is in these times of crash that transition is possible from working class to Upper class, true Upper class, not the delusion of Middle class.  An economic bust is the moment when the greatest profits can be made.  One need only be prepared beforehand:

On the 12th of March 2012, GAME Group [GMG.L on LSE] was valued at 1p per share.  This is the lowest trade-able value a share can reach.  To invest at this point is a 100% Guarantee of 0 loss in investment.  As Administrators in the event of Administration pay off stakeholders and shareholders first any investment would be returned.  If the company is eventually bought any rise in share price will increase your investment.  On March 16th GMG.L was values at 3p per share.  A £10 investment for 1,000 shares on the 12th would be worth £30 on that day.  GMG peak worth was around £3 per share.  Even if the company manages to reach a £1 a share in the future your 1,000 shares would be worth £1,000.

As above a similar pattern of ultimate low can be seen for other companies during the current economic period.  RBS post nationalisation hit 10p per share there the peak price per share a few years ago was £6.60 a share.  The same maths apply here.  At 10p a share £100 would gather 1,000 shares, then when RBS returns to its boom in several years time if it reaches £5 a share you would have £5,000 worth of shares.  The more money you have to invest at these low points the higher the eventual return.  As far as GMG is concerned it may still be a considerable risk but at £10 there is not that great of a loss.  RBS on the other hand is not that risky.  Banks rarely fail, and when they do they are rarely allowed to fail completely, whether we the people like it or not Government will bail them out.