THERE are approximately six million private sector businesses in the UK, of which a staggering 5.94 million were classed as being small (employing between zero and 49 staff members).
Of course, several factors can inspire aspiring entrepreneurs to launch their business ventures, each of which can have a direct bearing on how they operate and the decisions that they take over time.
Subscribe to our daily newsletter
Why? Free to subscribe, no paywall, daily business news digest.
But what does the term entrepreneurs mean, and what are the key motivations that inspire people to launch their venture in the first place?
What Do We Mean by Entrepreneur?
The term ‘entrepreneur’ is a relatively simple one, which describes an individual who creates a new business from scratch and invests in its development.
The process of setting up a business is referred to as ‘entrepreneurship’, while an entrepreneur will bear most of the risks (and yield the majority of the subsequent rewards) when launching a venture in a capitalist structure when individuals can own the means of production.
Entrepreneurs are commonly seen as innovators, whether they create new or refreshing products (or services) or simply develop a new way of delivering existing ideas to the marketplace.
In the modern age, being an entrepreneur is arguably easier than ever, especially with eCommerce offering a quick and cheaper route to market in some cases. Cloud capabilities have also empowered entrepreneurs and remote workers, with technological advancement delivering a significant uptick in business owners.
Innovation has also increased the success rate of new businesses and entrepreneurs. More specifically, it’s thought that 91% of entrepreneurs now enjoy a successful first year of trading, with this number having improved markedly in recent years.
Why Do Entrepreneurs Launch Their Own Business?
The question that remains, of course, is what initially inspired aspiring entrepreneurs to take the plunge, liaise with experienced wealth managers or investors and launch their businesses? Let’s get into it!
#1. Freedom and Flexibility: As technological advancement has empowered aspiring entrepreneurs; many have taken advantage of this to create a much freer and more flexible way of life. While entrepreneurs have to work incredibly hard when establishing and growing their businesses, the art of delegation enables them a more flexible schedule while making it possible to pursue their objectives without being encumbered by a traditional 9-5 career.
#2. Create Financial Security: While just 8% of people in a recent survey said that they were attracted to entrepreneurship by money, there’s no doubt that this can unlock higher earning potential and financial security going forward. This is an increasingly important consideration when you consider the state of the current macroeconomic climate, which is one of the reasons why we’re seeing a continued uptick in the number of people who want to start their businesses.
#3. Cope With the Economic Climate: After the great recession and financial crash in 2008, existing financial structures and the traditional labour market found themselves exposed. This created a generation of so-called “accidental entrepreneurs” across the globe, and there’s no doubt that changing economic factors can encourage people to launch their businesses and ultimately take control of their destinies.
