Entrepreneurship is on the rise. Every year, new businesses are created all around the world to provide new products or services.
With more than 500 million entrepreneurs in the world in 2021, startups are key drivers in innovation and for the economy. In fact, Australian Small and Medium Enterprises (SMEs) account for almost 50% of the country’s employment. Of the 10.5 million employed Australians, 4.8 million work for small businesses. The global pandemic has also facilitated a surge of new businesses with people launching their own ventures as a result of career and lifestyle choices.
But why do so many people decide to start their own businesses?
There are many reasons why people decide to start a business. Over the past 10 years, Tank Stream Labs have been at the forefront of startups and have seen thousands of individuals start their own journey. We have gathered the top reasons why entrepreneurs take the leap and decide to commence their startup journey.
Following a Passion
Most entrepreneurs share one key defining feature, namely, passion. Passion is the fuel that entrepreneurs need to keep motivated when navigating the rewarding, but also potentially challenging world as a business owner. Research shows that passion is an important predictor of an entrepreneur's persistence, creativity and venture success. In other words, the more passionate an entrepreneur is about their business idea, the more likely they are to succeed in their business venture.
An entrepreneur can be passionate about many things, the particular service they provide, the products they develop or they might be passionate about a solution to a problem that their business solves.
For many entrepreneurs, starting their own business has always been a dream. They were passionate about a certain industry or customer problem and decided to take the steps needed to fulfil their goals of becoming a business owner.
What sets successful entrepreneurs apart from others is their ability to execute their passion into a sustainable business.
Most entrepreneurs will say their drive to become a business owner lies in their motivation. Entrepreneurial motivation is essential for aspiring business owners, it can transform an ordinary individual to a successful business owner, who creates opportunities and maximises wealth.
Now, every business owner and business is different, therefore their motivational factors will differ. But there are similarities amongst entrepreneurs in where they find their motivation, for example the freedom that comes with running a business, greater income, the need to make a difference, and perhaps most importantly, greater influence and control.
Enrico Tam, Founder and CEO of PosiWise, explains his main motivation to start his own company as, “Creating a tech startup is for me the best way to do what is of importance; i.e working on challenging projects and making positive changes in the world”.
As an employee of a company you are very limited to the input that you can have to shape the direction of a company. The ability to control the direction of a company and exert creative control over all aspects of a company is often a deciding factor for aspiring entrepreneurs to leave their respective role and start their own business.
When you are your own boss you get to call the shots, make the strategic decisions and drive the company forward in the direction you want.
Having control and being responsible for all aspects of the business is ultimately why many people decide to become business owners.
Financial independence is not only a risk but an opportunity created by being a business owner. When working for someone else, employees are restricted to a salary and potential bonuses. It is very difficult to create significant wealth unless an individual is in a senior position in a successful or large company.
Starting a business creates the possibility of multiple financial benefits, and increased wealth over time, which would not have been possible as an employee of a company. As a business owner, you are in control of the finances, the direction of the company and the growth of the business. The business itself is an asset that has the potential to significantly increase in value to the benefit of the business owner.
While stories of extremely successful entrepreneurs like Mark Zuckerberg, Kevin Systrom and Jeff Bezos might make it sound like overnight success and making billions is possible for every aspiring entrepreneur with a brilliant idea, it is not that simple. The majority of businesses take several years to meet a break even point and to become profitable. But that being said, successfully growing your own business can eventually create an income you desire.
Many entrepreneurs start their careers in a corporate role before deciding to start their own business. The demands and pressures of working in these roles and having very little flexibility in the workday can be very frustrating.
David Wilson, Founder and Principal at Stratocumulus Legal explains one of his motivations for starting his own business being, “ I started my own legal practice to allow me to focus on the areas of law that I most enjoy practising, while working flexibly around family obligations and my young children.”
Being your own boss allows you to break free of the time restraints a corporate role demands. You can work your preferred hours, schedule your day around your priorities and set your own goals.
While it is undeniable that starting a business takes time and energy, especially in the early stages, you might find your work more demanding than previously. The work itself will be more satisfactory and rewarding when it’s your own business and you are working towards your own business goals.
Hopefully most of these reasons resonate with you, and you are motivated and driven to begin your business journey. Remember that the more driven and passionate you are about your great business idea, the more likely you are to overcome any inevitable hurdles that will challenge you. Being honest with yourself and taking the time to understand your motivations will be a great help when deciding to start a career as an entrepreneur. This will help you understand what exactly you want out of your business venture in the long run.
If you have any questions on this content or want to speak with a member of the Tank Stream Labs team, feel free to reach out at email@example.com.