Why do People become Entrepreneurs By: Anja Emerson

In these times of economic crisis, we are taken by surprise by the fact that more and more people decide to set up their own businesses and venture in the world of entrepreneurship. This is crucial to the economy of every country and it can have a positive effect not just on the individuals, but also on the overall economy by redirecting cash flow to more profitable activities and supporting economic growth.

These are a few of the main reasons why people decide to become entrepreneurs:

1. A need for financial independence and security

Setting up and managing your own business can be a tricky and stressful endeavor; however, it can prove to be very profitable. Having your own business can result in financial independence and this is an enormous accomplishment for most people, especially when the economy is in a period of decline.

2. Frustration with their current workplace or career

Some people become frustrated with their past achievements and feel like their current career path is not going the way they expected or fulfilling their personal aspirations. The feeling of reaching a dead end is what motivates them to make the brave decision of giving up on their current job and take on the challenge of setting up their own business. Some of these entrepreneurs were also employees with many years of experience in a certain field that saw the shortcomings of that industry and decided to introduce innovating ideas on the market and benefit society.

3. A desire for achievement and self-fulfillment

For many, having a business of their own is a childhood dream or a lifelong aspiration. The natural desire to fulfill this ambition will drive some people to pursue their goal of becoming entrepreneurs. Having your own business can bring a lot of satisfaction and a deep sense of achievement. This is especially true for people who have an inborn entrepreneurial spirit: they are excited by the challenge and they enjoy taking risks.

4. A need for having a stable income

The current state of the economy has resulted in a dramatic increase in the unemployment rate. Many of the people who lost their jobs are forced by the circumstances to search for new ways of earning a living and supporting their family. For some, setting up a business can be the way to regain their financial stability.

5. A willingness to invest their resources

People who are already wealthy may find that setting up a business can be a good way of creating more wealth and generating a steady flow of income. Investing in the right business can be immensely profitable and increase one’s net worth.

Entrepreneurs come from all the paths of life. The diversity of reasons to become an entrepreneur accounts for a large number of businesses being opened at any given time. However, it also explains why some businesses are a huge success, while others fail. At the same time, this variety in mentality and motivation is what makes the corporate world so interesting and unpredictable.

source: http://www.insidebusiness360.com/index.php/why-do-people-become-entrepreneurs-4-16625/