By Ted Baker, CEO/Executive Director—
MUNCIE, IN—The idea of starting a business is not new. According to an article in Immerse Education 2023’s “A Brief History of Business and the Evolution of Business,” “Business as we know it can be traced back 3,000 years to India and China, where companies – with structures resembling sole proprietorships, partnerships, and corporations. At this time, they began entering into contracts and owning property, essentially setting up the basic frameworks of business that we use today.” Today, according to the U.S. Small Business Administration, 32.5 million small businesses are in the United States. In the United States alone, around 595,000 businesses fail or close yearly for various reasons, but over 627,000 businesses get started. Despite these discouraging numbers, countless individuals continue to pursue their entrepreneurial dreams. This article will explore three compelling reasons people are willing to take risks and start or grow a business, even when the odds of success are low.
The first reason is the opportunity for potential financial benefits. For most people, income is earned by the work we do and the job we have. The possibility of financial success is a significant motivator for entrepreneurs. Most entrepreneurs know the risks and hazards of starting a business, but their dreams and visions of financial success are driving factors to venture out on their own. They see entrepreneurship as a pathway to financial independence and the opportunity to create a better future for themselves and their families.
Reason number two, why businesses are started when the success rates are low, is the allure of independence, flexibility, and autonomy. According to Business News Daily, “freedom and passion, not money, is the main motivation” for someone to start a business. And continuing, “they are also motivated by the idea of creating something from the ground up.” According to an eye-opening quote from AI/Chat GPT, “The appeal of autonomy goes beyond financial considerations. It encompasses the freedom to work on projects that align with one’s values and priorities, set one’s schedule, and build a company culture that reflects their vision. For many entrepreneurs, the prospect of being in control of their destiny outweighs the inherent risks of starting or growing a business.” The desire for freedom and self-determination can be a powerful motivator, even when faced with low success rates.
Let’s be clear here. Having the independence and freedom of being a business owner is not as easy as it sounds. I can recall from my personal experiences the first few years of my business startup were filled with long hours, long weeks and weekends, and many missed family meals and events. When the business is successful and continues to grow and mature, there will be opportunities to be flexible and enjoy certain freedoms. I could leave my work in the middle of the day to attend school events with my children. I loved having this freedom, but it usually included returning to my office afterward and working later in the day than normal. This is a wonderful part of business startup and ownership, but there will always be tradeoffs for the time spent at home and work.
Many entrepreneurs are driven by their desire to solve a problem, create something meaningful, or bring their unique vision to life. This intrinsic motivation often overshadows the fear of failure and drives them to persevere in adversity. This is the third reason people take risks when starting a business when the success rates are low. Passion and purpose are powerful forces that can sustain entrepreneurs through the challenges and setbacks inherent in the business world. When an entrepreneur genuinely believes in what you are doing and is committed to making a positive impact, the prospect of failure becomes a secondary concern. For these individuals, the journey itself is as important as the destination, and they are willing to embrace the uncertainty of entrepreneurship. While passion is vital to the startup of any business, entrepreneurs must remain committed to handling the practical aspects of business, such as accounting, marketing, sales, and more. Without sound business practices, emotion and passion will not sustain a business.
The Muncie Innovation Connector, Inc. is committed to assisting entrepreneurs, startups, or those already in business with the necessary resources and tools. As East-Central Indiana’s only full-service Entrepreneur Support Organization (ESO), the Innovation Connector provides practical resources and connections for people at any stage of business development. If you need assistance with your business, please allow the Innovation Connector team to join you on your journey. Most of our business advising services are FREE and available to anyone needing help.
Mark your calendars now for the following event dates:
Entrepreneur Showcase Week 2023 – November 13 – 17 – visit showcaseweek.com for details and information about this event.
The BIG Idea Training Camps: October 26, November 2, and November 9 – each date from 6:00 – 7:30 pm
The BIG Idea Pitch Competition Pitch Night: November 16 – Starting at 6:00 pm
For additional information about the Innovation Connector, please visit www.innovationconnector.com or call our office at 765-285-4900.