This time around, we will be looking at what might be one of the most important topics today: how to be an entrepreneur. Entrepreneurship lets you be your “own person” in many ways, letting you have the freedom to call the shots. In this article, we’ll go through the steps of what entrepreneurship entails, the pros and cons of entrepreneurship, and how to get started.
What is Entrepreneurship?
The dictionary definition of an entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise.” By that, we can derive that entrepreneurship is the act of doing these activities. But that is an oversimplification. The truth of the matter is being an entrepreneur is far more complicated than these words imply.
Entrepreneurship is not a passive action. A business owner can have a business and not truly be an entrepreneur. Being an entrepreneur means you have to pursue your business goals. You have to play an active role in order for your business to succeed. And that success can be elusive.
If you noticed, one of the words used to define an entrepreneur is the word “risk.” That is an important distinction. A true entrepreneur knows there is no guarantee of success. If you are playing it safe, then you are missing out on a vital part of entrepreneurship. Risk also makes the satisfaction of success that much sweeter.
Now, let us be clear about taking risks as an entrepreneur. There is such a thing as a calculated risk. You do not take risks for the heck of it. As an entrepreneur, you are playing the odds, but not like a gambler would. You are taking a risk with your investments. Those investments can involve more than money. It can also include time, effort, or as they say blood, sweat, and tears.
In essence, the only gamble you are making is your belief in yourself and whatever your dreams are for your chosen enterprise.
Why Become an Entrepreneur
That is probably the question that any aspiring entrepreneur asks themselves. But in 2015, 66% or about two-thirds of adults consider entrepreneurship as a viable goal. Perhaps it is a question that does not get asked enough times. It is an unnecessary challenge that someone must willingly choose to accept.
However, the thing with entrepreneurs is that it is essential for a society to have. Without entrepreneurs, there would be no progress. An entrepreneur fulfills a need, not just of their own but that of others. After all, without target customers, no one is going to pay for their products or services.
Do you feel this need to fulfill a role, provide a product or service that is not currently offered? Do you believe you can provide something unique? Can you give more than what you do to your current employment in order to fulfill your entrepreneurial dreams? Will you be willing to do your due diligence and not just roll the dice? And can you see yourself living your life only by trying to achieve your goal as an entrepreneur? These are important questions you have to address to find out for yourself if the life of an entrepreneur is the right one for you.
Types of Entrepreneurship
Before you “live the dream,” understand what type of entrepreneurship you seek to achieve. Currently, there are 3 broad types of entrepreneurship.
Small business entrepreneurship is your basic business. Often, these businesses are retail or service-oriented, with a scope that is intended for a limited market. A mom and pop store, a repair shop, an internet rental, and similar businesses exemplify this type. This is not to say that the enterprise has no potential to grow. Kentucky Fried Chicken started as one eatery, and look at how that turned out. But that was not the intention. Basically, the owner gets the business started and it operates with a tidy profit. But growth is projected at a smaller scale.
Start small, build big. Many startups fall under this category. In simple terms, it is a small business at the start, but the ultimate goal is to expand it. Generally, it follows that the beginning of this entrepreneurship is only to prove to investors that the product or service is profitable. The aim is to attract sufficient investments to fund the business towards its desired goal. In the age of the internet, these can represent anything from a tech startup to a crowd-funding venture. The prevalence of the latter through platforms like Kickstarter or Indiegogo is a reflection of this type of entrepreneurship.
This type of entrepreneurship starts out big and aims big. Rarely does an entrepreneur have enough funding on their own to launch a large business—this is where companies are established. For instance, large endeavors in manufacturing, research and development, wide-scale services, and such all fall under this type. An entrepreneur aiming for this level of business is going to be doing a lot of work to convince investors and managing a multi-layered organization in order to succeed.
Figure out what scale your entrepreneurship will be from start to finish. That is one of the first steps in getting it off the ground.
Your Future in Entrepreneurship
This is only the beginning. The road of being an entrepreneur is one that is filled with heartaches and triumphs. You have to decide if this is really the right path for you. But if it is, you are in luck! At Malematter.com, we’ll continue to provide information, news, and tips on how to follow your entrepreneurship dreams.