Abstract The factors that affect the supply of entrepreneurs are important but poorly understood. We study a sample of individuals who choose either to be employees or to run their own businesses. Four conclusions emerge. First, consistent with the existence of borrowing constraints on potential entrepreneurs, we find that the probability of self-employment depends markedly upon whether the individual ever received an inheritance or gift. Second, when directly questioned in interview surveys, potential entrepreneurs say that raising capital is their principal problem. Third, consistent with our theoretical framework's predictions, the self-employed have higher levels of job and life satisfaction than employees. Fourth, childhood personality measurements and psychological test scores are of almost no help in predicting who runs their own business later in life. It is access to start-up capital that matters

Full paper is here: http://wrap.warwick.ac.uk/337/1/WRAP_Oswald_entrepre.pdf

"Raising capital is their principal problem."

I find that so interesting.

I think our principal problem is finding the right people.

In Silicon Valley we have plenty of access to startup capital. It's access to talent that slows us down.