Of Entrepreneurship and Nepotism

Call yourself an Entrepreneur? Lets see if you are. 

I’m sure this post is going to ruffle a lot of feathers but what must be said, must be said. I’m a little tired of young professionals introducing themselves as Entrepreneurs when what they’ve actually done is spun around daddy’s money to create something for themselves. Let me set the record straight, there’s absolutely nothing wrong with doing that, as long as one calls it what it truly is, Nepotism!

For the record, Entrepreneurship is coming up with an idea, nurturing it enough to make it a business plan, planning the workability of the business, executing it and making it a profitable state of affairs. 

Nepotism is nothing but a corporate billet (top-management in most cases) being handed down to a next-of-kin or a loved one. This could be from a father to a son, from an uncle to a nephew, in some cases even between close friends.

I’m reminded of a friend of mine who basically did nothing right up to his early 20s. Then he suddenly dissolves daddy’s business and puts together a setup which is nothing but daddy’s business with a little bit of salt and spice. If his business cards are to be believed, he has been an entrepreneur for the last 7 years. Do you get my drift?

I’m also reminded of the many large corporate house princes who call themselves ‘second-generation entrepreneurs.’ What does that even mean? There’s only one kind of entrepreneur; a first generation entrepreneur. Anything after that is Nepotism unless the said ‘prince’ truly abides by the rules of entrepreneurship and puts together a whole new business for himself. This would make him a first generation entrepreneur, again!

Now one may argue, where’s the issue? Why draw this distinction? I draw this distinction because in most cases Nepotism follows from very poor due diligence. Whether its a loan being extended by daddy to the prince or the prince being made CEO of his predetermined empire, there are very few checks made and perpetually no protocol followed. However, an entrepreneur is almost always at the mercy of Venture Capitalists, Angel Investors or Banks, with all their due diligence and corporate red tape.

Truth be told, there’s absolutely nothing wrong with nepotism if its done well. I bet most of the entrepreneurs you find today will a few decades down, find themselves handing over to someone within their inner circle. That being said, it is prudent to draw a distinction between an Entrepreneur and a Nepotist for good order sake.

Simply put, Entrepreneurs are to Wealth Manifestation whereas Nepotists are to Wealth Manipulation. 

I’d love to hear your opinion. This article is meant to spark a healthy debate. Scroll down to drop a comment!