Entrepreneurship can be succinctly defined as the process of converting an idea into a business. There is significant interest in entrepreneurship globally. If you have ever wondered why people start businesses, here are three of the predominant reasons:
- The Desire for Independence: The most common reason people give when asked why they started an entrepreneurial firm is ‘’I wanted to be my own boss.’’ For example, Wendy De Feudis, the founder of VeryWendy, commented that she has found working for herself more fulfilling than working for a corporation. ‘’ For as long as I can remember, I have always wanted to be my own boss. I felt constricted by the organizational framework. It exasperated me and the bureaucracy was infuriating. I had to convince so many people of the validity of my ideas and attend countless meetings before proceeding with my designs.’’ A popular strategy is ‘’moonlighting’’ – starting your business as a side hustle while working at a regular 9-5 job.
- The Desire for Self-Expression: Large companies tend to downplay innovative ideas. If this happens, the promising concepts generated by their employees might remain unrealized. This can provide impetus to launch a new firm. Melissa Pickering is the founder of iCreate to Educate. While working as an engineer at Walt Disney Corporation, she began to explore the phenomenon of creativity in children. ‘’I believed that children lacked the chance to develop creative problem-solving abilities in the classroom. Hence, I decided to start an EdTech company that would engage children’s normal inventive capacities.’’
- The Desire for Wealth: Even though the reality can be disappointing, another reason people start businesses is to make a lot of money. Referencing billionaire entrepreneurs such as Jeff Bezos of Amazon and Mark Zuckerberg of Facebook, many entrepreneurs expect their businesses to make them wealthy. Research however reveals that, on average, entrepreneurs do not earn more financial rewards than corporate employees. Some entrepreneurs find that the prospect of losing control over their business casts a shadow on their desire to sell their businesses – relinquishing ownership upon exiting a business can be a bittersweet pill to swallow.
There might be other reasons for starting a business, such as the desire to make a difference in society, the desire to leave a legacy, the desire to be famous, etc. However, the three reasons above predominate. It’s important to know why you are starting a business as it has an impact on the type of business you start – whether it’s a technology company, a lifestyle business, or a social enterprise.
Want to start a business of your own? Download the free Entrepreneurship Roadmap below: