Title: Who's wealthier: Entrepreneurs or employees?

Authors: Michael Schaper, David Holloway, Hermina Burnett

Addresses: Murdoch University Business School, South Street, Murdoch, WA 6150, Australia. ' Murdoch University Business School, South Street, Murdoch, WA 6150, Australia. ' Murdoch University Business School, South Street, Murdoch, WA 6150, Australia

Abstract: Wealth creation is not necessarily a major outcome from owning your own business. Australian Bureau of Statistics data (2005-2006) reveals that employees earn slightly more in income than small business owners/entrepreneurs. However, small firm entrepreneurs have significantly more net assets (wealth) than employees ($797,000 vs. $527,000). These findings occur because small business owners/entrepreneurs reinvest a lot of their business income back into the business itself. These entrepreneurs will need different business advisory services when considering future wealth protection strategies.

Keywords: entrepreneurship; asset wealth; employee income; personal wealth; wealth creation; small business owners; entrepreneurs; net assets; reinvestment; wealth protection.

DOI: 10.1504/IJBG.2010.030669

International Journal of Business and Globalisation, 2010 Vol.4 No.2, pp.201 - 203

Published online: 30 Dec 2009 *

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