If start-ups are so risky, why doesn’t the government say something?
It is a reasonable assumption that if starting a business ends, more often than not, in failure then the government would say something. You would’ve thought that to read through some of the government’s website (like I did), there would be a significant warning telling people that they’re probably going to fail. Yet, there isn’t.
The only thing you find when you go onto any government website is advice on how to start a business, not whether you should do in the first place. Sure, there might be the odd line or two saying how difficult it is, but one only assumes that this is written to make people appreciate all that success they’ll have when they do make millions.
This ultimately boils down to the fact that in the short term, it’s good for government when people spend money trying to start businesses. Government, along with most other businesses, like it when people spend their money. There are lots of tax receipts a business can generate when starting a business and so why wouldn’t our government want us to try. And then if a start-up business does actually succeed, the government naturally benefits from their taxes and also the jobs that successful businesses create. So from a government’s point of view, it’s a win-win situation; and there is comparatively very little to be gained from telling people not to start a business.
The downside of people starting businesses are generally long-term, and therefore irrelevant. The fact that someone spent all their savings on a business and has less in their pension pot, is a problem for future governments, and therefore not worth mentioning.