Investment Banking vs entrepreneurship

Hey guys,

What are your thoughts on entrepreneurship vs investment banking?

Do you think entrepreneurship is too risky? that banking pays more? don't know what to do in terms of your own business? wish to start a business later in life?

I've always been that person who wanted his own business. My idea of success was never being senior in a corporate role but instead building a sustainable business. I went down the route of working for a start-up and doing IBD within a BB bank and was never happy. Only now that I started my own business am I excited about working day-to-day.

Reply 1

PlasmaSnake

3

Original post by uxa595

Hey guys,

What are your thoughts on entrepreneurship vs investment banking?

Do you think entrepreneurship is too risky? that banking pays more? don't know what to do in terms of your own business? wish to start a business later in life?

I've always been that person who wanted his own business. My idea of success was never being senior in a corporate role but instead building a sustainable business. I went down the route of working for a start-up and doing IBD within a BB bank and was never happy. Only now that I started my own business am I excited about working day-to-day.

I'm at that stage where I still have time to decide as a year 13 student. For me, it really depends, since IB pays well and opens career paths in HF, VC, PE or staying with IB if you want to. Personally, i like the idea of starting my own business, but finance in general is the safer path to go down (city work is quite volatile from what ive heard, and people do get replaced a lot) and is a way of making money quickly, which can help start a business eventually. Starting business is risky, but with determination, luck will come your way.

I wish you the best in your endeavours :smile:

Reply 2

gr8wizard10

21

risk vs reward, you have to remember 95% of startups die - so it's not as easy.. and also it's probably as gruelling in terms of work as being an owner and more stressful but it's ofc much more rewarding if you put your time into something that you're passionate in.

banking = safe
entrepreneurship = risky

i would also argue the 2nd offers more satisfaction but at the same time what people tend to miss is that it is also a lot more demanding.

obviously this varies with the type of business, the support you get etc..

Reply 3

uxa595

OP

21

Original post by gr8wizard10

risk vs reward, you have to remember 95% of startups die - so it's not as easy.. and also it's probably as gruelling in terms of work as being an owner and more stressful but it's ofc much more rewarding if you put your time into something that you're passionate in.

banking = safe
entrepreneurship = risky

i would also argue the 2nd offers more satisfaction but at the same time what people tend to miss is that it is also a lot more demanding.

obviously this varies with the type of business, the support you get etc..

I agree. Only thing I'd say is no where near 95% of businesses fail. Maybe tech businesses but not businesses in general.

An example would be a well established accountant starting his own practice - that's a business very likely to do well.

Reply 4

londonmyst

19

A few years working at one of the top investment banking firms can be a great way of making contacts, accumulating cash and identifying potentially lucrative business opportunities seeking investment.
Plenty of investment bankers invest their bonuses or savings in sideline businesses and then take the business full time when they leave investment banking.

Reply 5

username738914

21

Original post by uxa595

I agree. Only thing I'd say is no where near 95% of businesses fail. Maybe tech businesses but not businesses in general.

An example would be a well established accountant starting his own practice - that's a business very likely to do well.

not really a business.. you're just going independent at that point. only become a business once you reach scale

Reply 6

username6034012

1

Entrepreneurship is like investment banking, but in investment banking you are sure that your money increase. In entrepreneurship you have to take financial risks in the hope of profit. Also, there is a chance of losing your money.