Entrepreneurs commonly criticise bankers for providing no economic value. In fact, many entrepreneurs view bankers as an impediment to economic success. Entrepreneurs, especially small business owners, believe the only way to legitimately earn profits is to create value by doing work (including invention). These small business owners (who are the backbone of any well functioning economy) commonly view bankers as leaches, who suck out the resources of those legitimately engaged in productive enterprise. The small business owner typically feels like the banker is not providing any real productive value, but rather, the banker is simply manipulating numbers for the banker’s own benefit. Although I sympathise with the small business owner, the idea that bankers provide no value is far too simplistic and it reveals a lack of financial sophistication on the part of many small business owners.
At the root of the misconception many entrepreneurs have for bankers is a flawed understanding of the ways profits may be earned. I believe doing work and taking risk are both paths to profits.
