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In Defense Of Kylie Jenner: Are Any Of The World’s Billionaires Entirely Self-Made?

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Last month, after Forbes named Kylie Jenner the world’s youngest self-made billionaire, we unintentionally set off a heated debate on social media about the meaning of the word “self-made.”

The idea that a 21-year-old who grew up on a reality TV show (Keeping Up With the Kardashians), whose sister is Kim Kardashian, and whose rich and famous parents are Kris and Caitlyn Jenner could be considered self-made, sparked a very public backlash.

The debate was renewed once again on March 31 after the New York Times published a story in which Kylie admitted to having some help building her business. “I can’t say I’ve done it by myself,” the beauty mogul told the Times. “If they’re just talking finances, technically, yes, I don’t have any inherited money. But I have had a lot of help and a huge platform.”

READ MORE | At 21, Kylie Jenner Becomes The Youngest Self-Made Billionaire Ever

Well, yes, that’s exactly what we mean at Forbes when we say that Kylie—and 1,449 other billionaires—are “self-made.” And that’s perhaps the nub of the disagreement. At Forbes we’ve been using the term to describe the origin of someone’s fortune, rather than whether a billionaire got help to build a hugely successful company or not.

 Forbeshas been tracking the fortunes of America’s richest for more than 35 years and we’ve used three classifications for how people made their fortunes: self-made, inherited and inherited and growing; the latter category was reserved for people like Donald Trump, who built on his father’s real estate empire.

 Forbeshas been tracking the fortunes of America’s richest for more than 35 years and we’ve used three classifications for how people made their fortunes: self-made, inherited and inherited and growing; the latter category was reserved for people like Donald Trump, who built on his father’s real estate empire.

What many object to when Forbes calls Kylie self-made is that (1) she had lots of help (from people like her mom, Kris Jenner) building the company that turned her into a billionaire, and (2) she started out rich and famous. Both of those assertions are true. But Mark Zuckerberg, whom Forbes also classifies as self-made, didn’t build Facebook by himself and he started out well-off, though not as rich and not nearly as famous as Kylie. (Zuckerberg’s father is a dentist, his mother a psychologist).

READ MORE | The 10 Most Notable New Billionaires Of 2019

Plus there are seven other Facebook billionaires who, one could argue, rode alongside Zuckerberg in building the massive social network, including cofounder Dustin Moskovitz, Zuckeberg’s former roommate; cofounder Eduardo Saverin, Zuckerberg’s former classmate; Sean Parker, the social network’s first president; Jim Breyer and Peter Thiel, its early investors; and Sheryl Sandberg, Facebook’s chief operating officer since 2008, four years after the company was founded. Forbesclassifies all of these billionaires as self-made—none of them inherited their fortunes. None of them built Facebook alone.

Five years ago, Forbes dug deeper into one defining characteristic of billionaires: How far did they climb to make their way to the top? That year, for the first time, we gave each member of The Forbes 400 list of richest Americans a self-made score on a scale from 1 to 10: A 1 means the fortune was completely inherited; a 10 is for a Horatio Alger-esque journey from the depths of poverty. At the most basic level, the scores denote who inherited some or all of their fortune (scores 1 through 5) and those who truly made it on their own (6 through 10).

We have continued to apply this self-made score to all American billionaires (and also now to self-made women). In Kylie’s case, we gave her a 7 out of 10, acknowledging that she had plenty of advantages from the start.

Donald Trump scores a 4 because he inherited a fortune from his father and then expanded it significantly, while the widow of Steve Jobs, Laurene Powell Jobs, gets a 2 because she inherited a fortune and has a role in managing it, having made investments in media (The Atlantic and Ozy Media) and professional sports (she owns a 20% stake the group behind the NBA’s Washington Wizards and NHL’s Washington Capitals).

READ MORE | More Than A Dozen European Billionaires—Linked To BMW, L’Oréal, Bosch—Have Families With Past Nazi Ties

While few billionaires have had the type of social media platform that Kylie Jenner had when she launched her business—with 120 million Instagram followers—(which we actually think further underscores her entrepreneurial savvy, not the help she got), every single self-made billionaire on Forbes’ list has had help building their fortune, be it from other employees at the company they founded, venture capitalists, mentors, friends or parents.

Steve Ballmer, for instance, had the good fortune to be one of Bill Gates’ classmates at Harvard, which led to a job at Microsoft. He eventually replaced Gates as chief executive, a job he held for 15 years. He is now the 19th-richest person in the world.   

Leon Black, whose father was the CEO of United Brands, got a $75,000 life insurance payout after his father died when he was in business school. He later cofounded private equity giant Apollo Global Management, which made him a billionaire. Hedge fund tycoon Chase Coleman is a descendant of Peter Stuyvesant, the last Dutch governor of New York. Another hedge fund titan, Ken Griffin, started trading in his Harvard dorm room using $265,000, part of which came from his family.

And the nation’s richest real estate developer, Donald Bren, is the son of a real estate investor and Hollywood film producer. Phil Knight, in his autobiography Shoe Dog, spells out how the early days of Nike were a team effort by a core group of incredibly dedicated early employees. Even Oprah Winfrey, who grew up dirt poor and earns a number 10 rank on our self-made score, got help from smart producers and other employees to turn her daytime talk show from an also-ran into a huge hit, as the podcast Making Oprah details.

READ MORE | The World’s Most Generous Billionaires Outside Of The US

So why have people reacted so vehemently to Kylie? Is it that the Kardashians are people everyone loves to hate? Is it that Americans are fed up with the reality TV, social media culture that not only helped make a 21-year-old who posted on Instagram a billionaire but also helped get a president elected? Several people with whom we spoke wondered if it was because she was a woman. Would we have had the same discussions if it was her half-brother Robert who became a billionaire instead of Kylie?

No one will really ever know. But one thing is certain: Kylie Jenner figured out a simple, easy way to turn her family’s fame, her huge Instagram following and her passion for makeup into big, big bucks.

Luisa Kroll; Forbes Staff

Kerry A. Dolan; Forbes Staff

Billionaires

Motsepe Family & Associates Join Rupert And Oppenheimer Families In Donating R1 billion To Deal With COVID-19 Pandemic

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On Monday South Africa’s President, Cyril Ramaphosa revealed that South Africa’s richest families the Rupert and Oppenheimer families had each contributed R1 billion to assist small businesses and their employees affected by the coronavirus pandemic. Today the Motsepe family has contributed R1 billion ($57mn). See full statement below.

The Motsepe Family in partnership with companies and organisations that they are associated with, have pledged R1 billion to assist with the current Coronavirus (COVID-19) pandemic and its related challenges that are confronting South Africa and the African Continent.

These companies and organisations are:
 Motsepe Foundation
 Sanlam
 African Rainbow Capital (ARC)
 African Rainbow Minerals (ARM)  and others

The Founder and Chairman of the Motsepe Foundation, Dr Patrice Motsepe said: “Several hundred million rands will immediately be made available with the primary objective of saving lives and slowing and restraining the spread of the Coronavirus. We are purchasing sanitisers, disinfectants, Personal Protective Equipment (PPE) and are in discussions with Government, health workers and other stakeholders to assist with acquiring other equipment and making resources available which are essential for dealing with the Coronavirus pandemic. We’ve been advised that access to water for regularly washing hands is crucial for slowing and limiting the spread of the Coronavirus. We are therefore providing water to poor rural and urban communities by purchasing water tanks (jojos), drilling and equipping for borehole water and also building sanitary facilities. The current lockdown has an impact on the goods, equipment and services that can be purchased immediately and the goods and services which can be provided when the lockdown has been terminated. Our short to medium term interventions include building additional classrooms, computer centers and laboratories in all the 9 provinces of South Africa to assist with the excessively high number of students per classroom in some schools; particularly in the context of the current Coronavirus pandemic and the social distancing requirements.

Those schools in the poor rural and urban areas which do not have internet access or facilities will be assisted with study guides, scientific calculators, dictionaries and other educational equipment and facilities identified in consultation with the Department of Basic Education, school principals and teachers. Poor and underdeveloped communities are ill-prepared to deal with the serious challenges and consequences of the Coronavirus pandemic and are in dire need of our assistance and contributions. We are committed to contribute to the provision of quality education, infrastructure and other facilities to better prepare and equip them to deal with future pandemics or catastrophes.”

We will be working in partnership with:
 traditional leaders, kings, queens and their communities that we have been working with for the past 20 years;
 the 34 Religious and Faith-Based organisations that participate in the annual Motsepe Foundation National Day of Prayer;
 National, Provincial and Local Government authorities;
 Trade Union and other Worker Representative organisations;
 NGOs and other local community representative organisations;
 sport organisations and entities;
 local, provincial and national business and professional organisations;
 black and white farmers and their representative organisations; and
 other organisations or structures that can assist or partner with us in dealing with the current Coronavirus pandemic.

The CEO of Sanlam Ian Kirk said: “Sanlam has a rich history of always putting our people, our clients and our country first; hence our mantra of ‘Doing well, by doing Good’. Today, we’re proud of the partnership with the Motsepe Family and its associated companies. We believe these efforts will make a meaningful contribution not only towards fighting the Coronavirus, but also in developing the long-term sustainability of South Africans, particularly in poor and rural areas. Periods of profound uncertainty like these call for us to come together to support all the prudent actions that contain the scourge of this virus and its impact on our already fragile economy.”

The CEO of ARC Dr Johan van Zyl said: “As a nation we are in unchartered waters in terms of the scale and danger that the COVID19 pandemic presents to South Africans. It is now time for each and everyone of us to demonstrate leadership and help. ARC is a fairly young company with limited financial resources. Yet, it remains important that we make a contribution. In this regard we are partnering with companies and organisations with which we have common interests and share common values to ensure that the positive impact we aim to make is felt.” We have been in contact with various Ministers and MECs and will also be in contact with the Government’s Coronavirus Solidarity Fund to identify specific initiatives and projects where we can partner and work together. There may be upliftment and developmental undertakings where they are better positioned than we are, in which case we may fund or donate with them on a particular project or partnership.

We want to thank Government for their leadership and cooperation including health workers, police, soldiers, as well as Religious and Faith-Based organisations, traditional leaders, trade union and other worker representative organisations, NGOs and other rural and urban organisations. We also want to thank business and in particular the Rupert and Oppenheimer families, the employees, boards and stakeholders of the companies that the Motsepe Family is associated with, for their assistance and contributions in dealing with the current Coronavirus pandemic.

South Africans have a history of uniting and working together when confronted with major and enormous challenges. We are confident that South Africa will in the medium to long term overcome the life-threatening and economic challenges caused by the Coronavirus pandemic and continue to build a bright and inclusive future for the people of South Africa and the African continent.

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How To Become A Billionaire: Nigeria’s Oil Baroness Folorunso Alakija On What Makes Tomorrow’s Billionaires

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One of only two female billionaires in Africa, with a net worth of $1 billion, Nigeria’s oil baroness Folorunso Alakija elaborates on the state of African entrepreneurship today.

The 69-year-old Folorunso Alakija is vice chair of Famfa Oil, a Nigerian oil exploration company with a stake in Agbami Oilfield, a prolific offshore asset. Famfa Oil’s partners include Chevron and Petrobras. Alakija’s first company was a fashion label. The Nigerian government awarded Alakija’s company an oil prospecting license in 1993, which was later converted to an oil mining lease. The Agbami field has been operating since 2008; Famfa Oil says it will likely operate through 2024. Alakija shares her thoughts to FORBES AFRICA on what makes tomorrow’s billionaires:

What is your take on the state of African entrepreneurship today? Is enough being done for young startups?

There are a lot of business opportunities in Africa that do not exist in other parts of the world, yet Africa is seen as a poor continent. The employment constraints in the formal sector in Africa have made it impossible for it to meet the demands of the continent’s working population of which over 60% are the youth. Therefore, it is imperative we harness the potential of Africa’s youth to engage in entrepreneurship and provide adequate assistance to enable them to succeed.

Several governments have been working to provide a conducive atmosphere which will promote entrepreneurship on the continent. However, there is still a lot more to be done in ensuring that the potential of these young entrepreneurs are maximized to the fullest. Some of the challenges young startups in Africa face are as follows: lack of access to finance/insufficient capital; lack of infrastructure; bureaucratic bottlenecks and tough business regulations; inconsistent government policies; dearth of entrepreneurial knowledge and skills; lack of access to information and competition from cheaper foreign alternatives.

It is therefore imperative that governments, non-governmental agencies, and the financial sectors work together to ameliorate these challenges itemized above.

The governments of African nations should provide and strengthen its infrastructure (power, roads and telecom); they should encourage budding entrepreneurs by ensuring that finance is available to businesses with the potential for growth and also commit to further improving their business environments through sustained investment; there must also be a constant push for existing policies and legislation to be reviewed to promote business activities.

These policies must also be enforced, and punitive measures put in place to deter offenders; government regulations should also be flexible to constantly fit the dynamics of the business environment; corruption and unethical behavior must be decisively dealt with and not treated with kid gloves. We must empower our judicial system to enable them to prosecute erring offenders with appropriate sanctions meted out. There should be no “sacred cows” or “untouchables”. The same law must be applied to all, no matter their state or position in the society; non-governmental organizations can also provide support for them through training and skills acquisition programs that will help build their capacity; they could also provide finance to grow their businesses; more mentorship programs should be encouraged, and incubators of young enterprises should be supported by public policy aimed at improving the quality of these youths and their ventures; and also, avenues should be created where young entrepreneurs will be able to connect, learn and share ideas with already successful well-established entrepreneurs.

What, according to you, are the attributes needed for tomorrow’s billionaires?

There is no overnight success. You must start by dreaming big and working towards achieving it. You must be determined to succeed despite all odds. Do not allow your setbacks or failures to stop you but rather make them your stepping stone. Develop your strengths to attain excellence and be tenacious, never give up on your dream or aspiration. Your word must be your bond. You must make strong ethical values and integrity your watchword. Always act professionally and this will enable you to build confidence in your customers and clients. 

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Mike Bloomberg Announces $40 Million Plan To Combat Coronavirus In Developing Countries

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Less than two weeks after withdrawing from the presidential race, Mike Bloomberg announced Tuesday that his Bloomberg Philanthropies is launching what it’s calling the Coronavirus Global Response Initiative, a $40 million plan to combat the spread of the coronavirus in vulnerable low and middle-income countries.

Bloomberg tweeted that the new initiative will particularly focus on Africa, which has 417 confirmed COVID-19 cases and seven deaths across the continent as of March 17. 

The new plan comes just days after the three-term New York City mayor announced the Coronavirus Local Response Initiative, which will mobilize mayors across the U.S. to fight the pandemic and keep their cities safe by providing them with virtual technical assistance, coaching, and accurate information. The first virtual meeting will take place on March 19, where more than 180 cities are expected to join experts from the Johns Hopkins Bloomberg School of Public Health and the Bloomberg Harvard City Leadership Initiative.

“I know from my experience as mayor of New York City that giving public health professionals the tools to protect the public is vital to saving lives,” said Bloomberg in a statement, “and to help mitigate the kind of economic and social damage that could make this crisis even more debilitating for families and communities.”

The international initiative, which will work alongside The Bill & Melinda Gates Foundation’s response to the virus in developing countries, will fund rapid response teams that will prevent and detect infections, train healthcare workers on the ground to control infections, develop lab networks to manage and transport specimens to central laboratories for diagnosis; measure acceptance and impact of containment strategies, provide communications support such as public education campaigns and provide technical expertise to global and regional health organizations.

Bloomberg’s tenure as the Mayor of New York City included fighting outbreaks in the U.S. such as the swine flu in 2009, which infected 60.8 million people and the outbreak of West Nile virus in 2012, which infected 5,674 people.

In a March 1 television ad for his campaign, Bloomberg addressed the country’s lack of preparedness for the then-epidemic, stating that “at times like this, it’s the job of the President to reassure the public that he or she is taking all the necessary steps to protect the health and well-being of every citizen.” He went on, “They want him or her to prepare for events like these in advance with teams of experts.”

Since then, the World Health Organization has declared the virus a global pandemic that has infected 196,000 people around the world and killed nearly 7,900. In its statement, Bloomberg Philanthropies will partner with Dr. Tom Frieden, a former director of the U.S. Centers for Disease Control and currently president and CEO of Resolve to Save Lives, an initiative of global health organization Vital Strategies, along with the World Health Organization (WHO) to mitigate the virus.

“We have a window of time to partner with Ministries of Health in sub-Saharan Africa to protect their population from a disease that could kill through both infections and disruption of health services,” said Frieden.

Forbes estimates that Bloomberg, who is currently worth $45 billion and is the fourth biggest philanthropist in America has given away billions of dollars in recent years with a focus on climate change and global public health initiatives, including a $1.8 billion pledge to Johns Hopkins University, his alma mater. Bloomberg Philanthropies says it distributed at least $3.3 billion last year.

Natalie Sachmechi, Forbes Staff, Billionaires

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