Who are the Wealth Creators?

“Some people regard private enterprise as a predatory tiger to be shot. Others look on it as a cow they can milk. Not enough people see it as a healthy horse, pulling a sturdy wagon.” Winston Churchill.

Just who are these people who create wealth?

What do they look like?

Are they special creatures?  With mystical powers?

Where do they live?  Mt. Olympus?

First of all, what is wealth creation?

We probably need to agree on what it is before we can attribute credit.  So, let’s get a definition, shall we?

How about a simple definition; one word:  Profit?  Profit is just the excess of revenues over outlays in a given period of time.  Profit is what’s left over after all the bills are paid.

And, I’d like to add a few small caveats to this definition.  I assume this profit is made through gainful, value adding enterprise.  And, this enterprise is legal, moral and ethical.  How could you call it profit, if these caveats are not followed?

The reason I like this definition is because it’s quantifiable.  And, profit lays the groundwork for economic prosperity.

Isn’t economic prosperity a cornerstone for other wealth factors such as security, safety, happiness, health?  How happy can you be if you can’t afford to feed your family?  Or, can’t afford to provide them a safe, secure, and comfortable place to live?

So, permit me to use this narrow definition but, at the same time, I agree “profit” is not the only item necessary for wealth creation.  But, it’s a main ingredient; like flour is for making bread.

So, can we say, where there’s profit, there’s wealth creation?

Good.  Then let’s proceed.

Who makes Profit?

Who are the profit makers?  If we can identify them, then we’ve found the source; the wealth creators.

Well, first of all, who makes a profit?

Do Employees Make a Profit?

Employees?

I don’t think so.  Let me explain.

Employees receive pay for work done.  Maybe bonuses as well, but this can be lumped into pay.  This pay comes out of some profit making enterprise somewhere.

For instance, government workers are paid with tax dollars.  These tax dollars came from profitable enterprises that pay taxes.  Profitable enterprises that hire workers who pay taxes.

And, private sector employees are paid because they work for some enterprise that generates a profit.  No profit, no pay.  How many employees would stick around working if they didn’t get paid?  So, no pay, no workers.

So it must be …

So, that only leaves one group of people.  They must be the wealth creators.  They must be the ones responsible for generating profits which in turn leads to economic prosperity.

All these people have one thing in common.  They’re responsible for creating gainful, value adding enterprise that makes a profit.  Any amount of profit.  Could be large, could be small.  The amount doesn’t matter.

What matters is they are on the economic playing field.  They’re in the game.

These people take economic risks.  The step out.  They make things happen.  They drive forward.  They thrive on the excitement of challenge, change, uncertainty and the unknown.

They don’t cling to security.  Because they know security is not where it’s at.  Security is for those who are scared by change.  Scared by uncertainty.  Scared by challenge.  Scared by the unknown.

But, I’m thankful for these brave souls.  Because, they are the wealth creators.  Without them the economic engine comes to a grinding halt.

After all, without them there’s no profit.  And, without profit there’s no jobs, either government or private sector.

From jobs comes taxes.  More jobs, more taxes.  More taxes, more money for the government.  And, the government likes that.

So, you’d think the government would be the biggest fan of these wealth creators.

And, to look at the tax laws, I’d say they are.  The tax laws seem to favor these brave souls.

Do we have a name for the wealth creators?

Do we have a name for these profit makers?  These wealth creators?

Sure do.  It comes from the French language.  It’s a badge of honor.

A few definitions as follows:

• Someone who organizes a business venture and assumes the risk for it
• An individual who starts his/her own business
• someone who is willing to assume the responsibility, risk and rewards of starting and operating a business.

These are definitions for the word entrepreneur.

Yes, the profit makers, the wealth creators, are known as entrepreneurs.