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The "paradox of plenty" also known as the "resource curse" is a theory that indicates countries rich in natural resources such as oil, minerals, diamonds, gold, and silver often perform worse in terms of economic growth, democracy, and overall development compared to countries with fewer natural resources.
I've seen this theory play out in my own experiences with businesses I've started. Businesses that I began with very little money tended to perform better. On the other hand, businesses where I invested a lot more money didn't do as well. Learning about the paradox of plenty was a real eye-opener for me in many ways. It helped me understand why some countries remain less developed and why some of my businesses were more successful than others.
When I had less money, I had to be more creative and active in thinking. I couldn’t just throw money at problems; I had to improvise and be creative, find new ways, and educate myself to build things on my own. This approach really sparked my creativity and improved my skills in other areas, like becoming a better salesperson or negotiator.
*For example, with less money, I had to negotiate much harder and think outside the box to get good deals. This skill also helped me secure better rents for my retail locations, creating a kind of domino effect of benefits.
Another example is the Spanish Empire, which gained enormous wealth from its colonies in South America in the 1500s. The large amounts of silver income made Spain less interested in developing industries. Because of this, Spain didn't focus much on innovation or investing in education. As a result, it missed important opportunities for future growth and soon fell behind other Western countries economically.
So, what I want to share with you, especially if you want to become an entrepreneur and start your own business, is that you don’t really need a lot of money. What’s far more important is your mindset. Money can be both a curse and a blessing. I've made it a rule for myself to start businesses with as little money as possible because the most important capital is a healthy mindset and a strong desire that pushes you to become creative and achieve your goals, just as I did.
Achieving your goal is not the main victory; the real win is the person you become and the values you learn. Money can be lost easily, but your skills belong to you and no one can take them away from you.
