What is entrepreneurship?
Entrepreneurship is 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” The people who engage in the entrepreneurship process are called entrepreneurs.
Reasons for engaging in entrepreneurship
- Control: Entrepreneurs want to be their own boss;
- Ambition: Entrepreneurs want to start something from scratch and develop it; and
- Financial: Entrepreneurs see an opportunity to earn more money
Requirements of becoming successful in entrepreneurship
- Strong will, endurance and patience;
- A business concept or idea involving a product, service, process, or new technology;
- A business plan that breaks down the idea into processes and phases;
- People to support the work, whether as employees, vendors, or advisors;
- A process by which the product or service will be delivered, or the technology will be developed; and
- Enough money to support the development of the idea to the point that it generates revenue.
Factors to consider when deciding the kind of entrepreneurship to venture in
In considering what kind of business to start, an entrepreneur needs to assess:
- Their interests;
- Their background and experiences;
- Their financial resources;
- Unmet market needs;
- Problems they can solve; and
- Their network and connections.
The benefits of entrepreneurship
1. It gives a great amount of freedom
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 is not possible in formal employment.
2. Give rise to self-actualization: You believe in what you do
Working in entrepreneurship is inspiring. Instead of being a component in the wheel for a giant, hierarchical corporation, you are able to see your ideas make a difference and contribute to the construction of a brand-new business.
3. It can be exciting
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.
4. It allows you to set your own targets and returns
You will be the one setting your own wage and making investments when you own the business. You could end up significantly increasing your income.
5. It offers flexibility.
As an entrepreneur, you can schedule your work hours around other commitments, including quality time you would spend with your family and/or friends.
6. Gives a chance to choose your work environment
Don’t expect to always be working from inside an office while working for or creating your own start-up. Entrepreneurs and other start-up founders often work from home or while traveling, instead of within an office. This is a great way to be able to experience a change in scenery and break up the monotony of always working in the same space.
7. You get to see your work change the society
Part of what an entrepreneur does is solve problems. They make something more efficient, provide a better service or build a new product that helps people in their everyday lives.
8. You become an opinion maker and a business leader
Being able to see how your business has contributed to the local economy and provided jobs is incredibly rewarding. Your role as a business leader in your community is important and respectable.
Reason of failure in entrepreneurship
The entrepreneur may lack the patience to wait until the business is established
The business need to be given adequate time to establish itself and start building profits.
Lack of a business plan hence poor planning
Without a business plan it is not easy to identify potential problem areas and so chances of failure are higher.
Poor financial planning may lead to failure of the business venture
If the venture is under-priced, the company will not be able to maintain operational expenses and eventual it fails. If it is over estimated and there is too much money available, chance of misusing it are high.
It requires you to dedicate a huge amount of time
One big challenge in starting your own business is the amount of time you have to invest in it. For it to be successful, you have to take a level of time commitment that many people are just not willing to make.
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.
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. However, the venture does not guarantee 100% success.
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. Some entrepreneurs give up after experiencing this.
About the Author
Thank you for reading this article. The author, James Ndambiri is an avid Business Advisor and Consultant: A Tax Surgeon, Proficient Accountant, Skilled Auditor, a Guru in Financial and Investment management, Expert in Business Strategy Formulation, Business Transformation Wizard, Family Business Advisor, Lecturer, Business Coach and a Family Man.
James is the Founder, Team Leader, CEO & Managing Partner of MNC Consulting Group. MNC Consulting Group is your most trusted and respected professional business consulting firm recognised by our clients for delivering excellent business advisory and consulting services that create value to their ventures. With our focus set on value addition, we offer our clients the highest quality professional services in Accounting, Audit and assurance, Tax, Business Transformation, Investments and Financial Advisory, Family Business Advisory, Company Secretarial Services and Property Management that addresses their business needs through attracting, recruiting and retaining knowledgeable and passionate professionals who enable us to deliver superior results while contributing positively to the community in which we live and work.
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