I. What is Entrepreneurship?
Entrepreneurship is the process of designing, launching and running a new business, which is more often than not, initially a small business, offering a product, process or service for sale or hire. The people who create these businesses are called entrepreneurs. Entrepreneurship has been described as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a PROFIT. While definitions of entrepreneurship typically focus on the launching and running of businesses, due to the high risks involved in launching a start-up, a significant proportion of businesses have to close, due to “lack of funding, bad business decisions, an economic crisis – or a combination of all of these” or due to lack of market demand.
An entrepreneur has been defined as, “a person who starts, organizes and manages any enterprise, especially a business, usually with considerable initiative and risk; running a small business with all the risk and reward of any given business process”. Entrepreneurs tend to be good at perceiving new business opportunities and they often exhibit positive biases in their perception (i.e., a bias towards finding new possibilities and seeing unmet market needs) and a pro-risk-taking attitude that makes them more likely to exploit the opportunity. An entrepreneur may be in control of a commercial undertaking, directing the factors of production – the human, financial and material resources – that are required to exploit a business opportunity. Entrepreneurs act as managers and oversee the launch and growth of an enterprise. Entrepreneurship is the process by which either an individual or a team identifies a business opportunity and acquires and deploys the necessary resources required for its exploitation. The exploitation of entrepreneurial opportunities may include.
- Developing a business plan
- Hiring the human resources
- Acquiring financial and material resources
- Providing leadership
- Being responsible for both the venture’s success or failure
- Risk aversion
Entrepreneurship is a complex term that’s often defined simply as running your own business. But there’s a difference between a “business owner” and an “entrepreneur,” and although one can be both, what distinguishes entrepreneurship is a person’s attitude.
“It’s fine to celebrate success but it is more important to heed the lessons of failure.” — Bill Gates
“Your time is limited, so don’t waste it living someone else’s life.” — Steve Jobs
Entrepreneurship is becoming more popular these days, as many people are becoming interested in gaining freedom from their employment. Rather than working for a company, they are branching out into becoming entrepreneurs and becoming their own boss. As this trend is growing at a fast rate, it is time to look at its advantages and disadvantages.
II. Pros and Cons of Entrepreneurship?
List of Advantages of Entrepreneurship
1. You always get to be in control.
Entrepreneurship means that you get to choose the work that you’re going to be doing. You get to use your strengths in the way that you believe are best. Your skills get to contribute to your earning potential. Because you are in many ways in control of your own destiny, it can be a very satisfying experience to be an entrepreneur even if the money doesn’t come rolling in like a title wave.
2. There’s something new and exciting every day.
Entrepreneurship can be very exciting, with many entrepreneurs considering their ventures highly enjoyable. Every day will be filled with new opportunities to challenge your determination, skills and abilities. There’s no routine when it comes to entrepreneurship in the modern world. There are new challenges to enjoy every day. There are new problems to tackle. The days of being stuck behind a computer, inputting data under a blinking fluorescent light go away – unless that’s the kind of business you want to run. Then by all means – go forth and type away. Either way, your determination and abilities get to solve problems that other workers never get a chance to solve.
3. There is a certain amount of freedom associated with entrepreneurship.
Although the hours can be long and bothersome as an entrepreneur, there are also some levels of freedom that come with it. If you want to spend a day working at home, then you can do it. Go work at the coffee shop for a while. Sit on the beach in the sunshine. The freedoms are so great for most entrepreneurs that many of them don’t even think of their work as a “job” because they love what they do so much. If you are working for a boss and a company, you need to meet all their requirements and only have very little freedom on the job. On the other hand, if you start your own business, you will be able to make your own demands and set your own schedule. You dictate everything you do, giving you a level of freedom that you will not see when you are employed. As an entrepreneur, you are fully free to make your own decisions pertaining to your business.
4. Your income takes on a more rational approach.
Although you don’t actually always earn what you’re worth, the amount of income that you do receive is directly related to the amount of work and innovation you contribute to a project. Entrepreneurs that are highly committed to create a world-class product or service are the ones that have the best chance of experiencing success. Of course, you will be the one setting your own wage and making investments when you own the business. The work that you do would be for something you own, which can be a huge advantage compared to when you are working as an employee for a certain company.
5. You get the freedom to be yourself.
Entrepreneurship means you get to be as creative and innovative as you want to be when it comes to running with your idea. There is nothing that exists that can confine you unless you allow it. The cubicle walls don’t have to exist. Chase your own goals, weave your work into your life, and go to work wearing a bathrobe if that’s what you want to do. As an entrepreneur, you can schedule your work hours around other commitments, including quality time you would spend with your family. , you have a more flexible working schedule. You no longer need to go through a fixed schedule day in and day out. As your own boss, you can choose to do whatever needs to be done at your own pace. For example, you can prioritize classes to improve your business skills and relegate other tasks to your next free moment.
6. Action happens quick and fast.
Entrepreneurship is a fascinating world because action happens quickly and rapidly every day. Your fortunes can turn immediately, which means every day is a brand new chance to experience the success that is craved. From a business standpoint, there may not be a better way to achieve your dreams. Being an entrepreneur means that you get all the benefits involved, including a better income that might only get bigger as long as you possess enough business skills to keep your business afloat. As an entrepreneur, you have better opportunities to expand your technical skills and creativity as you find ways to use them in running your business.
List of Disadvantages of Entrepreneurship
1. You have to be the one making all of the decisions.
It can be fun to be in control of the entire business process, but it can also be a burden at times. Some decisions can be rather difficult, especially if you need to lay off workers or terminate someone’s employment. Let’s not forget about all of the paperwork that comes with every decision that gets made, taking up a lot of personal time and energy along the way. It comes with unpredictable work schedules. One major drawback of being an entrepreneur is that more work and longer hours will be required from you than being an employee. Finally, since no one can ever guarantee how a business might pan out, you will have to make do with unpredictable income for the next couple of years. You also have to possess the drive to get things done on your own. No one else besides yourself will be ensuring your work gets completed on time and in a satisfactory manner.
2. Entrepreneurship is a highly competitive environment.
You’ve always got to be on your toes when it comes to modern entrepreneurship. You never know where the next competitor might show up and take some of your market share. Not only are you forced to constantly innovate, but you’re forced to be constantly differentiating your business from the rest of the competition. That alone can be a full-time job… and you’ve still got at least one other full-time job to do. It can be difficult to compete with other businesses. It is very important for an entrepreneur to stay competitive. This means that you have to differentiate your business from others in your niche in order to build a solid customer base and, finally, become profitable.
3. Leadership is a lonely world.
Many people enjoy the perks of leadership and being an entrepreneur, but they don’t really enjoy the outcome. Friends are few and far between when working as an entrepreneur. There are long hours when there will be no one else around. Not only does this mean there isn’t companionship, but there is only one place to lay the blame should failure occur. Many entrepreneurs see days blur together just because they’re either working or they’re not working.
4. Income doesn’t usually happen on a regular basis.
Business opportunities can speed up and they can slow down. Many first-time entrepreneurs make the mistake of planning their income on the good times instead of the bad times and they pay for it dearly. There is no such thing as a regular paycheck in entrepreneurship. There’s only the income that you’re able to take home today. That’s why so many entrepreneurs put in long days. The only guaranteed chance that they have is right now.
5. Working schedules can be very unpredictable.
You might be able to set your own hours as an entrepreneur, but that means you might wind up losing a lot of the work that comes your way. This is actually the biggest disadvantage of all for most people. Entrepreneurs can make a lot more money than standard employees, but it often comes because of longer, harder hours being worked. It isn’t uncommon for entrepreneurs to put in several 7 day working weeks in a row. One big challenge in starting your own business is the amount of time you have to dedicate to it. Remember that entrepreneurship is not easy, and for it to be successful, you have to take a level of time commitment that many people are just not willing to make. And even if you are able to enjoy flexibility in your work schedule when your venture does become successful, you will still have to dedicate a substantial amount of time to growing the business. Being an entrepreneur is that it requires more work – and not just in the beginning. While your head may be filled with free schedules and vacations, the truth of the matter is that you may work even harder as an entrepreneur than when you are an employee.
6. You’ve got to stay motivated every time you’re addressing work needs.
There are no off-days when it comes to entrepreneurship. If you’re working, then you’ve always got to bring your A+ game to the table. There are no excuses to hide behind. You either accomplish something or you do not accomplish something, which means self-motivation is an essential skill for entrepreneurs to have. Even if you’re taking a vacation, you’re not really getting to take time off.
Entrepreneurship can be a highly rewarding experience. It can also have days that are highly frustrating. There will be days when the money comes rolling in and you can’t believe your good fortunes. Then there will be days when no money comes in and you wonder if it’s time to get a “real job.” Being an entrepreneur can be a challenge and it isn’t for everyone, but it has the potential to be the most rewarding decision you could ever make.
It does not guarantee 100% success. Entrepreneurship would make your dreams come true, which does not often happen with traditional employment, but you need to make some sacrifices to make it happen. You should know that this type of venture does not guarantee 100% success. Since your business is your sole responsibility, you will have to bear the burden of financial loss and all expenses that may arise. This is why you have to put in more than enough planning in order to start any business. While you want to become your own boss, you must first know the amount of effort, time and investment to make your venture successful. Even though there are a lot of rewards coming from it, it also has certain downsides.
III. Very Useful Tips
If you haven’t yet found your personal business guru, here are 21 tips for young or aspiring entrepreneur to help get you started.
1. Challenge yourself.
Richard Branson says his biggest motivation is to keep challenging himself. He treats life like one long university education, where he can learn more every day. You can too!
2. Do work you care about.
There’s no doubt that running a business take a lot of time. Steve Jobs noted that the only way to be satisfied in your life is to do work that you truly believe in.
3. Take the risk.
We never know the outcome of our efforts unless we actually do it. Jeff Bezos said it helped to know that he wouldn’t regret failure, but he would regret not trying.
4. Believe in yourself.
As Henry Ford famously said, “Whether you think you can, or think you can’t, you’re right.” Believe that you can succeed, and you’ll find ways through different obstacles. If you don’t, you’ll just find excuses.
5. Have a vision.
The founder and CEO of Tumblr, David Karp, notes that an entrepreneur is someone who has a vision for something and a desire to create it. Keep your vision clear at all times.
6. Find good people.
Who you’re with is who you become. Reid Hoffman, co-founder of LinkedIn, noted that the fastest way to change yourself is to hang out with people who are already the way you want to be.
7. Face your fears.
Overcoming fear isn’t easy, but it must be done. Arianna Huffington once said that she found fearlessness was like a muscle — the more she exercised it, the stronger it became.
8. Take action.
The world is full of great ideas, but success only comes through action. Walt Disney once said that the easiest way to get started is to quit talking and start doing. That’s true for your success as well.
9. Do the time.
No one succeeds immediately, and everyone was once a beginner. As Steve Jobs wisely noted, “if you look closely, most overnight successes took a long time.” Don’t be afraid to invest time in your company.
10. Manage energy, not time.
Your energy limits what you can do with your time, so manage it wisely.
11. Build a great team.
No one succeeds in business alone, and those who try will lose to a great team every time. Build your own great team to bolster your success.
12. Hire character.
As you build your team, hire for character and values. You can always train someone on skills, but you can’t make someone’s values fit your company after the fact.
13. Plan for raising capital.
Richard Harroch, a venture capitalist, has this advice for upcoming entrepreneurs: “It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So plan for that.”
14. Know your goals.
Ryan Allis, co-founder of iContact, pointed out that having the end in mind every day ensures you’re working toward it. Set goals and remind yourself of them each day.
15. Learn from mistakes.
Many entrepreneurs point to mistakes as being their best teacher. When you learn from your mistakes, you move closer to success — even though you initially failed.
16. Know your customer.
Dave Thomas, the founder of Wendy’s, cited knowing your customer as one of his three keys to success. Know those you serve better than anyone else, and you’ll be able to deliver the solutions they need.
17. Learn from complaints.
Bill Gates once said that your most unhappy customers are your greatest source of learning. Let unhappy customers teach you where the holes in your service are.
18. Ask for customers’ input.
Assuming what customers want or need will never lead to success. You must ask them directly, and then carefully listen to what they say.
19. Spend wisely.
When you spend money on your business, be careful to spend it wisely. It’s easy to spend too much on foolish things and run out of capital too soon.
20. Understand your industry.
Tony Hsieh, the founder of Zappos, once said, “Don’t play games you don’t understand, even if you see lots of other people making money from them.” Truly understanding your industry is key to having success.
21. Deliver more than expected.
Google’s Larry Page encourages entrepreneurs to deliver more than customers expect. It’s a great way to get noticed in your industry and build a loyal following of advocates.
Being a successful entrepreneur takes a lot of work, a lot of vision and a lot of perseverance. These 21 tips, from entrepreneurs who have already found success, will help you navigate the path much more easily.
Wishing you GOOD LUCK for your Entrepreneurship