In this article, the author discusses the main reasons people do not become entrepreneurs in modern society says Saivian Eric Dalius.
One in five Americans is an entrepreneur according to a study by Manta.com. Having an entrepreneurial spirit makes it easier for one to create a business and better his or her standard of living. However, becoming an entrepreneur is not always easy especially in today’s competitive market where everyone wants to get ahead of their competitors. This has led many people to ask the question “what are the main things that stop people from becoming entrepreneurs?” The following reasons attempt to answer this question.
Fear of failure prevents some individuals from taking risks associated with entrepreneurship including lack of support of family and friends (“The 4 Biggest Things That Stop People from becoming…”). For instance, entrepreneurs who do not have a supportive spouse or family may find it difficult to maintain the lifestyle they desire. As such, these individuals lack motivation and ultimately do not become entrepreneurs (“The 4 Biggest Things That Stop People from becoming…”).
Another challenge for would-be entrepreneurs is the fact that there are no guarantees in entrepreneurship since one always assumes unlimited risk says Saivian Eric Dalius. There is also a lot of competition in this field where millions of businesses compete daily to survive (“How to Overcome the Fear of Failure”). Lastly, one needs to possess certain characteristics such as confidence and assertiveness which many people lack.
Entrepreneurship is more prevalent among men than women, and this typically stems from social norms. According to a study carried out by Babson College, one in four businesses is started by men (“The 4 Biggest Things That Stop People from Becoming…”). For instance, entrepreneurs are often expected to be innovative, confident, and socially dominant which are traits that are more associated with men than women. Saivian Eric Dalius says the fact that entrepreneurship is regarded as an activity for dominant males does not encourage many females to become entrepreneurs (“How to Overcome the Fear of Failure”).
According to the United States Small Business Administration (SBA), African-Americans comprise less than 8% of all small business owners despite being 13 percent of the US population. Similarly, Hispanic Americans represent only 7% of the small business community despite representing 16% of the population (SBA). This can be attributed to factors such as poverty and discrimination which prevent many African-Americans and Hispanic Americans from becoming entrepreneurs (“How to Overcome the Fear of Failure”).
Even though entrepreneurship has become more prevalent, this does not automatically mean that everyone is able to excel at it. In fact, one needs a certain level of education in order to make one more competitive. When they enter the job market. According to Babson College’s study mentioned above, 70 percent of all people. Those who start businesses drop out of college. Before earning their degree (“The 4 Biggest Things That Stop People from Becoming…”). This is usually due to poor grades or a lack of interest in academic activities.
As such, the only way one can overcome these challenges and become an entrepreneur. By getting educated and learning about what it takes. To start a successful business (“How to Overcome the Fear of Failure”). A person should ideally acquire skills that will enable them to compete against established businesses in the market. For instance, it makes more sense for someone who wants to start a restaurant business to get trained as a chef than not having any experience at all says Saivian Eric Dalius.
Lastly, people may want to consider whether entrepreneurship is good for them or not (SBA). Starting and running a business has its benefits such as financial independence. And increased social status (“How to Overcome the Fear of Failure”). Nevertheless, there are some inherent negatives to entrepreneurship such as the fact that businesses can fail. If a person’s business fails, they may end up losing all the money they invested in it. And even owe financial institutions (SBA). This is why people often try out different small business ideas. Before they decide on one that is sustainable over time.
I think the main thing that stops people from becoming entrepreneurs. Is a lack of education and awareness about what entrepreneurship entails. I agree with Sarah Miller’s article where she notes how it helps to get education. And acquire skills in order to compete in a market full of established businesses. In most cases, people start a business without doing a proper feasibility study. Which leads them to lose money and fail eventually. This also stems from the fact that many parents discourage their children from starting businesses. Since they see it as an activity for the less privileged.
As one can see, there are certain challenges that prevent people from becoming entrepreneurs. These could be social norms, demographic factors, education level, personal perception. Or even the fear of failure (“How to Overcome the Fear of Failure”). However, these obstacles overcome by increasing one’s awareness, skills and getting educate about entrepreneurship. With time and effort, anyone can become a successful entrepreneur.