The Start Line Problem

𝗛𝗼𝘄 𝗗𝗼 𝗪𝗲 𝗚𝗲𝘁 𝗠𝗼𝗿𝗲 𝗣𝗲𝗼𝗽𝗹𝗲 𝘁𝗼 𝘁𝗵𝗲 𝗦𝘁𝗮𝗿𝘁 𝗟𝗶𝗻𝗲?

When you start digging into the dynamics of success, it’s not always just about who’s talented and works hard. It’s about who gets the opportunity to show that they’re talented, what I call: the start line problem.

𝗧𝗵𝗲 𝗟𝗮𝘄 𝗼𝗳 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 (𝗮𝗻𝗱 𝗜𝗻𝗵𝗲𝗿𝗶𝘁𝗲𝗱 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲)

I recently listened to Howard Marks excellent podcast episode, “Shall We Repeal the Laws of Economics?” It’s a breakdown of why free markets and capitalism work and I agree with every word. Marks emphasises that the incentives in a free market drive capital, labour, and risk-taking to their most efficient ends and raises the collective standard of living. Along the way, Marks mentions something profound:

“Some people do considerably better than others thanks to good luck and/or inherited advantage, rather than innate ability.” 

“Some people”? How many people? What proportion of people?

If we define inherited advantage to include encouragement to raise ambitions, networks, mentorship and economic safety to take risks; is inherited advantage 1% of the battle to do well or 20%? What if it’s 70%? It seems to me that knowing the answer to this question is very important.

𝗧𝗵𝗲 𝗦𝘁𝗼𝗿𝗶𝗲𝘀 𝗕𝗲𝗵𝗶𝗻𝗱 𝗦𝘂𝗰𝗰𝗲𝘀𝘀

In Shoe Dog, Phil Knight's journey to creating Nike is inspiring. When I read it, I noted two pivotal moments almost no one else that I have discussed it with could even recall. First, Knight’s father gives him money to travel to Japan to explore the idea of selling shoes. Then, when Knight needs capital to buy his first inventory, his father steps in again with a loan. These are small parts of the story but they are foundational. Without his father’s support, there’s no trip to Japan, no inventory, no sales, no Nike.

Shoe Dog is just an example, nearly every story of business success has such a moment. They’re not cinematic and so aren’t particularly memorable but once you start noticing them, you notice them everywhere.

𝗪𝗵𝘆 𝘁𝗵𝗲 𝗦𝘁𝗮𝗿𝘁 𝗟𝗶𝗻𝗲 𝗠𝗮𝘁𝘁𝗲𝗿𝘀

Imagine a race where some runners start on flat ground while others have to scale walls just to get to the track. It’s not just unfair—it’s inefficient. Every time a talented person is held back due to a lack of opportunity, we all lose. We lose out on the businesses they would build, the jobs they would create, and the innovations they would unleash.

𝗪𝗵𝗮𝘁 𝗡𝗲𝗲𝗱𝘀 𝘁𝗼 𝗖𝗵𝗮𝗻𝗴𝗲

At State School Ventures we’re building a path to the start line for those with talent, drive, and ambition, regardless of their background. The goal isn’t to change capitalism; it’s to enhance it. 

If we get this right, it’s not just about fairness; it’s about growth. The hidden cost of our current system isn’t just inequality—it’s the lost potential of the untapped talent out there. The future Phil Knights who otherwise wouldn’t get a chance to run.