The world’s dynamics have changed over the years, giving birth to modern needs and problems that need to be addressed with innovative solutions. This consequently has opened new opportunities for businesses around the globe.
Young minds are taking the business world up by storm. Today businesses are all about innovation, flexibility, and transparency as modern problems require swift actions and solutions. It will not be wrong to say that entrepreneurship has changed over the last decade, opening multiple opportunities for new talent from around the globe. So many people want to become a founder and change their own lives as well as the lives of other people. Currently, there are 582 million entrepreneurs in the world.
Entrepreneurship may be perceived differently by different people; however, it revolves around the ability to set up a business and steer it to success. In this age, entrepreneurs have access to multiple resources and technologies to support their businesses. Unlike in the past, entrepreneurs today have better access to learning, mentorship, and investment to grow their startups.
Who is an entrepreneur?
An entrepreneur is an individual who sets up a business to solve a problem or add value to other people or businesses, in the hope of making profits. Entrepreneurs are risk-takers who strive to run businesses with innovation and open-mindedness.
Becoming an entrepreneur means signing up for risks and challenges. It may seem like a battle at first but once you have things on track, you have all that you had dreamed of. People dream of becoming entrepreneurs and being recognized for their efforts and work. Nonetheless, this comes with its set of advantages and disadvantages.
Pros of Becoming An Entrepreneur
The biggest advantage of becoming an entrepreneur is surely the freedom! Entrepreneurs enjoy greater freedom to make their own decisions and make things work just the way they want them. As an entrepreneur, one can work without having to report to any seniors as you become your own boss.
Entrepreneurship is all about making the right decisions. In their ventures, entrepreneurs are responsible for steering the company in the direction of their choosing. This autonomy to devise a strategy for the enterprise and then execute it is what drives many founders.
Entrepreneurs tend to be flexible people. No, we are not referring to yoga here, but intellectual flexibility. The journey of building a startup throws many challenges at you and requires you to think outside of your comfort zone. You discover new ways of approaching problems. Many people become founders to explore new horizons and cherish the mental fluidity which comes with it.
A successful business can bring in bigger profits that may exceed a person’s employment income. According to Zippia, in the United States, small-scale entrepreneurs make roughly $42,000 a year, while the top 10% of entrepreneurs make $118,000.
Becoming an entrepreneur gives you multiple opportunities to work in various domains. This enables an individual to develop multiple essential skills that are required to run a business successfully. From time management and marketing to organizational skills, all are polished as an entrepreneur.
By now, you must be overwhelmed with the advantages that entrepreneurship brings. But this is just one side of the same coin, one just cannot ignore the cons of being an entrepreneur.
Cons of Becoming An Entrepreneur
The disadvantages of becoming an entrepreneur are as follows:
As they say, with great power comes great responsibility. Entrepreneurs enjoy all the power as a boss but this way the future of their business lies in their hands. Similarly starting a new business means picking up new roles and challenges for yourself. An entrepreneur must be ready to risk his savings, time, and efforts while setting up any venture. Moreover, one needs to be available to establish and look after multiple processes at a time, lead a team and so much more.
Workload and Multi-tasking
An entrepreneur invests his days and nights hustling to start and run a new business. They have to fill in many shoes in the initial days, and this can take a toll on one’s physical and mental health. Many become demotivated because they are working too much and seeing very little reward. It takes a lot of character and grit to work so hard and wait for the results.
Many entrepreneurs start their journeys in the hope of freedom and independence. However, they still have to manage clients, business partners, and investors; and their expectations. These people can exert significant influence over an entrepreneur’s decision-making process and can diminish the feeling of freedom that comes with being an entrepreneur.
Many businesses fail due to a lack of finances or mismanagement of financial resources at multiple stages. Often, the cash is coming in later than when it is needed which results in a lot of stress. An entrepreneur needs to keep a track of the business expenses against the orders being taken or managed. Similarly, new companies are more prone to be affected by changes in taxes and regulations. To handle these problems, founders need to think quickly on their feet and keep themselves calm.
Many founders often fantasize about raising large funding rounds for their companies. For a new business, fundraising can be a lot more work than an entrepreneur can think of. Fundraising is about creatively telling your brand’s story and capturing investors’ attention to convince them. However, the process only starts there. Weeding through the technicalities is long and gruesome, and often fails after several months.
Competition is another challenge in becoming an entrepreneur. No matter what genre one chooses, the market can become highly competitive. Even if you start in a brand new niche, as soon as other people have an idea that you are seeing some success, they will try to scoop in and try to build an even better value proposition. An entrepreneur needs to put in a lot of effort to stay ahead of the competition and develop a moat that is hard for anyone else to imitate.
Entrepreneurship demands that time, effort, and resources be spent smartly. The journey can surely be rewarding in the end, but one has to know about all the pros and cons which come with it.