An entrepreneur is an individual who creates a new business, and bears most, if not all, of the risks involved, and seeks to enjoy most of the rewards.
Entrepreneurs are commonly seen as innovators, a source of new ideas, or disruptive ideas, to reshape or change the existing market. This sets them apart from the usual description of self–employed.
Entrepreneurs play a major role in any economy, using their skills, and initiative, to anticipate future needs and bring new ideas to the market. This leads to growth, economic wealth, job creation, and further innovation.
There is certainly no shortage of entrepreneurial aspirations in the UK and many other parts of the world. Nearly two-thirds of the workforce want to set up their own business. This figure rises to a whopping 80%, for the 18 – 25 year old age bracket.
What are the main reasons for becoming an entrepreneur?
The chance of significant financial gain – Many people are motivated by the potential for not only making an increased income on where they currently are, but also for the chance of making the megabucks, and being the next Jeff Bezos or Elon Musk.
Increased financial security – The search for financial security is also a major driver of would-be entrepreneurs. Even if your new business didn’t produce the millions or billions made by the top entrepreneurs, it could still be enough to provide financial security for life, and not having to rely on an employer for your income, and therefore lifestyle.
Dislike their current job – With more than a third of employees disliking their current job, they are motivated to try something new, and on their own, as a way of escaping their personal rat race.
To advance their current career – If people experience a lack of job progression, especially over a long period of time, then they may decide to explore alternative avenues such as entrepreneurship. They may see it as the only way to advance their career, and become the boss.
More flexible working – Some people may consider the potential route of an entrepreneur as a way of working more flexibly, and possibly working from home. This doesn’t mean working fewer hours, as most new entrepreneurs work far longer than the average working week.
With most of the workforce wanting to become an entrepreneur, and the reasons for doing so appearing quite compelling, as noted above, why isn’t everyone doing it?
Being an entrepreneur is a high-risk strategy, although the rewards can be very high. Those who do not succeed, and that unfortunately will be the majority, can suffer significant personal losses, and financial losses for investors.
Of all the people who dream of becoming an entrepreneur, nearly half already know they won’t become one, because they won’t even try.
Fear of failure, loss of money, very long hours, extra stress, too much competition, sleepless nights, the impact on family, and even BREXIT fears, are all common reasons for not following the dream of becoming an entrepreneur.
Do you have what it takes to succeed as an entrepreneur?