I second SalmonGod's sentiments.
As someone looking into starting a law firm. The upfront investment and risk are enormous. Finances are scarce and pre existing obligations don't go away to help with that.
Economists would call this "
Barriers to Entry." Allegedly, the inefficient firms will die off replaced by "more efficient" new firms. Curious, no one seems to be able to start those new firms, without them, those same firms who originally screwed up will eventually be the only ones in a position to tackle the business of Clients. Also the public is wary of anything new.
Starting a new law firm as a new lawyer is hard because people look for old lawyers: this is foolish.
I find this hilarious given that people will go to an older lawyer because he looks like he knows what he's doing, and that's exactly how the scam works and what it counts on. Said older lawyer is a pretty face. Said pretty face charges $500 an hour, which, who the crap are we kidding, your average person has no ability or desire to pay. So, they will have the old guy focus on corporate clients that make your average person's case look like small potatoes. He will focus on the case that brings in $20,000 in legal fees and could care less about your (to him) measly couple thousand. It's not a hard choice for him to make....
Except, you know, its something to pay the light bill I guess... those smaller claims says older lawyer. How does he get the money without doing much of any of the work? That's simple. He hires me to work for peanuts and do all the work. He literally never looks at your file again and probably forgets your name chalking it up to a "senior moment" and smiling charmingly.
Summary, the old lawyer just hands off the case to the younger one who does everything while the old guy plays golf with some corporate officer anyhow. Why not cut out the middle man?
Of course, now you can not do that, but before you had a family, you may well have been able to achieve that. Obivously doing something on your own is not an option for everyone.
Because it's somehow easier to start a business right out of college or high school? Granted you don't have the expense of a family, but meh.
Bottom line: It is really hard to start a new business. If old businesses aren't hiring and new ones are scarce, jobs are really hard to find.