Blog Post #8 - Mark Cuban: Only Morons Start a Business on a Loan

Mark Cuban is a very well-known American entrepreneur who is currently one of four “Sharks” on the popular television show Shark Tank. In his interview with Trish Regan, he gives some tips to small business owners and discusses the US economy.  

Mr. Cuban’s first point is that starting a business is totally up to you; make no excuses. He recommends that people find something they love to do, be great at it, and turn it into a business. However, he doesn’t recommend getting a loan to start a business. He believes that only morons start a business with a loan. He states that the one certainty borrowers have is that they have to pay back their loans. Instead, he feels it’s better to start a business with no capital. He believes that starting a business is all about effort and that when someone starts a business, he or she better know the industry better than anyone else in the whole wide world.

Mr. Cuban then goes on to talk about how some companies are cash hoarding and that a better way forward is to put the capital to work by hiring workers. He believes that it’s important to keep America competitive. This idea falls right in line with what I am currently learning in my Macroeconomics class about Gross Domestic Product (GDP). The economy is most productive when a country has full employment.

In conclusion, Mark Cuban is a very interesting and engaging speaker who is considered an expert in his field. His points were communicated effectively, but not necessarily appropriately. There are successful business owners who did start their businesses with a loan. They will likely be offended about Mark Cuban’s moron comment. Let’s hope they are laughing all the way to the bank!

Source

Cuban, Mark. Only Morons Start a Business on a Loan. "Street Smart." Bloomberg Business. https://www.youtube.com/watch?v=KYneLGRTgy8. Published on June 14, 2013.