American Entrepreneurs and the Horatio Alger Myth

Abstract

Since 1925 a number of scholars have conducted studies of the general business elite in America. Their studies have concluded that the American business elite has been predominantly native born, urban, better educated than the general population, and has originated disproportionately from higher economic classes. These conclusions are not surprising. It might have been surprising if the business elite were found to have emerged predominantly from the poor and less educated, and the immigrant, farm or working-class populations. Such origins would infer a rapid displacement of elite members, the possibility of rapid and massive disaggregation of family fortunes, and the loss of family aggrandizement as a motivating consideration in the minds of aspiring businessmen. This, however, was apparently not the case.