LeadershipCrest

Top Genuine Reasons Why People Become Entrepreneurs

Why people become entrepreneurs – Top 12 reasons

This is the era for entrepreneurship, we hear many success stories about new start-ups attracting funding from VCs and business owners making a profit after selling their stakes at a high premium. Real entrepreneurship provides immense freedom from mundane jobs and is challenging and rewarding at the same time. But why do people become entrepreneurs, The reasons are multiple, but in this blog, we will address the most pertinent ones.

1. To break from the monotony of work

While in a job, if you are an ambitious and Zealous individual, you get easily bored with your daily routine, working in an office or a factory environment. Why people become entrepreneurs is to escape this monotony, as a business owner, you need to take care of a plethora of activities that keep you engaged throughout and there is seldom a moment of monotony since you are constantly pushing your threshold.

2. Unlimited earning and learning potential

The ability to take calculated risks is one of the major reasons why people become entrepreneurs. where there is a risk, there is the opportunity for earning as well. Also, once you learn new and relevant skills if applied in an emerging opportunity it can help enhance your earning potential exponentially.

3. Networking and growth prospects

The business provides an opportunity to meet with fellow entrepreneurs and business owners at various networking forums like BNA  and industry events, A free flow of ideas can be exchanged and new processes can be learned from each other’s experiences to avoid common mistakes. This accelerates once growth trajectory.

4. Evolve as a person and professional

You are not depending on your company or employer to provide growth opportunities, you create your own path to work on your weaknesses and improve strengths that are relevant to your growth as a professional and good for your organization.

5. Decision-making authority

The sole decision maker is you in your business, once you have an idea and strategy to implement the idea, the decision as to when and how to implement is your call. The process of decision-making is much faster as it does not follow a hierarchical approach which motivates many people to become entrepreneurs.

6. Solving problems

You work on identifying the needs of the market and understanding the gap. Solutions can be built upon the same rather than working on redundant issues. You attract funding and investors to fuel your ability to resolve persistent problems by developing scalable solutions.

7. Innovation

As an entrepreneur, constant innovation, and improvisation are the keys to their survival first and then success. The moment you stop innovating, competition or market conditions get the better of you. Constantly implementing new ideas is the key to success. The tried and tested strategy that has earned you a fortune may become redundant all of a sudden, hence continuous improvement and innovation are required for entrepreneurs to stay ahead of the curve. A business owner gets to innovate and try ideas that are best suited to his business.

8. Flexibility

It’s up to you if you want to work for 5 or 14 hours per day. If you need to take a break, you don’t have to reason out with your employer and take prior approvals, this provides a lot of flexibility to take care of professional work and personal commitments and provides the much-needed work-life balance.  Also, there is flexibility to do more than one business, unlike a job where you are mostly not allowed to take up a parallel assignment due to strict “ Conflict of interest” clauses.

9. Build credentials and legacy for own brand

In the initial years, you work hard to build the credentials for the work you do, and it would stand for helping grow your brand image and meet the organizational goals. Many businesses have become successful in building a  legacy around them for the generations to come and are a “household” name. This prompts many people to become entrepreneurs.

10. Pay lower tax

It’s a universal fact that an entrepreneur pays lower taxes compared to an employee at the same income level. While the taxation rules are skewed against an employee who gets his salary credit to account after deduction of taxes, the entrepreneur has the liberty to apportion his expenses and then arrive at income, this helps save taxes. This is also one of the major reasons why people become entrepreneurs.

11. Financial independence

The dependence on pay check to pay check is now over. Once you build and establish your credentials in your chosen business, over time you can enjoy the profits of your hard work. Any profit or lumpsum payout helps to build a reasonable balance that can be utilized for investment in any asset.

12. Social responsibility

You tend to get aligned with various philanthropy clubs which can take care of multiple social causes. As an entrepreneur, one can donate liberally to an agency, associated with providing meals to the needy on a big scale. Since any social responsibility provides a lot of tax benefits and is a goodwill that provides a sense of satisfaction.

Conclusion

The above are the major reasons why people become entrepreneurs, if most of the above points inspire and excite you, then it’s time you should think of getting into entrepreneurship. Although rewarding, at the same time it comes with a lot of accountability and risks, hence think through your priorities in life and make an informed decision.

FAQ

Q: What are the primary motivations for individuals to become entrepreneurs?

A: People often become entrepreneurs to gain greater control over their professional lives and destinies. They seek autonomy, the ability to make independent decisions and to create their own path in business.

Q: Can personal passions play a role in becoming an entrepreneur?

A: Absolutely, people often start businesses related to their interests and passions.

Q: Is innovation a reason for becoming an entrepreneur in business?

A: Yes, some people become entrepreneurs to create new things and solve problems.

Q: What are the three main reasons people start businesses?

A: Independence, Innovation, and Financial Potential are the three primary reasons people become entrepreneurs.