Entrepreneurship is the creation of a new business venture by an individual who comes up with an innovative idea, organizes resources and sets up shop. People become entrepreneurs for various motives that include generating wealth, a vision of transforming people’s lives, autonomy and a sense of accomplishment.
Creation of Wealth
Being profitable is an inherent motive of an entrepreneur. Most business owners wants to earn profits. Few professions generate the wealth that a successful business can generate. The richest people in the world, including Jeff Bezos, Bill Gates and Warren Buffet, are entrepreneurs. They all own a piece of equity in businesses founded by them. Wealth creation is one of the factors that motivate a person to become an entrepreneur.
Vision to Transform Society
Not everyone who becomes an entrepreneur is driven solely by a profit motive. Some have a strong desire to improve the lives of people living in their neighborhoods and local communities. For example, some people may have a goal to see a society that does not report child malnutrition. They become social entrepreneurs and create a venture that facilitates the provision of nutritional foods to needy children. Henry Ford had the vision to change the way people are transported. He saw a potential in automotive parts becoming tools for mass transportation and started the Ford Motor Company. A vision to transform society is an intrinsic motivation that helps entrepreneurs make a difference. As reported by Forbes, extrinsic motivations often work against entrepreneurs by leading them to set unrealistic and overwhelming goals.
Autonomy and Flexibility
Autonomy is a personality trait characterized by independence and self-governance. Entrepreneurs enjoy autonomy by creating their own rules and guidelines; they don’t have bosses to monitor their day-to-day activities. According to the Enterprise Research Center, successful business ventures provide the flexibility to choose desirable working hours and allow people to spend sufficient time with their family members. Entrepreneurs enjoy working for themselves – not others.
Sense of Achievement
When working for a company, you put all your hard work toward achieving the goals of someone else. A sense of achievement is missing for many employees who work at lower hierarchy levels. Upon establishing a new business, entrepreneurs work toward achieving their own goals. Entrepreneurs enjoy a great sense of achievement by reaching their goals and are further motivated to set new goals. A sense of achievement at various stages of the business life cycle motivates people to take the risk of setting up businesses and running them.
Characteristics and Competencies of Successful Entrepreneurs
Individuals need several attributes, characteristics and skill sets to become successful entrepreneurs. They include the ability to take calculated risks, self-confidence, desire for independence, desire for achievement, ability to innovate, and knowledge on market trends.
An entrepreneur should keep an eye on changing market trends to identify the opportunities that could generate profit. Entrepreneurs who don’t recognize transformations in technology and changes in consumer behaviors may fail to make an impact. Kodak and Nokia, the leaders in their respective niches a couple of decades ago, are examples of how businesses struggle or fail when they don’t recognize changing trends in the market and transform their business models accordingly. Jeff Bezos, the founder of Amazon, recognized the role that the internet would play in people’s lives in the early days of the 21st century and transformed Amazon into a successful e-commerce organization.
Content retrieved from: https://smallbusiness.chron.com/different-motivations-starting-new-business-4202.html.