Do you envision yourself as a successful business owner (aka an entrepreneur) someday?
The word entrepreneur comes from the French word entreprendre, meaning “to undertake.” An entrepreneur is usually defined as someone who is instrumental in undertaking, running, or organizing a business, and who takes on greater than normal risk in order to do so.
Many people feel that it would be exciting to run a successful business but also express uncertainty whether they should pursue this goal. If this resonates with you, you might first consider why people even become entrepreneurs.
Is it to earn a fortune, gain your freedom or make a social impact?
We are going to put together a series of short articles that explain some of the reasons why people decide to become entrepreneurs, which will also highlight the impact of entrepreneurial alumni at some of the top schools in the world for inspiration.
Today we’ll start with some basic information about entrepreneurship and why people decide to pursue an entrepreneurial career path.
A few quick figures on entrepreneurship:
- 80% of startups fail in their first 18 months
- Entrepreneurs currently working at a company they have started have founded 2.3 other companies in the past (usually failed)
- 9% of entrepreneurs are the first in their family to launch a business
- 1% of entrepreneurs have an undergraduate degree, and 47% have a graduate degree
- 65% of entrepreneurs are 30 years of age or older when they launch their first startup
- 75% have worked for 6+ years at another company prior to starting their own business
- 89% of entrepreneurs will start companies using their own money and money borrowed from friends and family
Source: Kauffman Foundation
Why don’t more people choose to become entrepreneurs?
- 98% of people believe it is too risky
- 93% believe it would require too much work
- 89% of people believe they lack the business or management skills needed to succeed
Source: Kauffman Foundation
What motivates someone to become an entrepreneur?
- More than 70% of entrepreneurs cite the creation of wealth as “important,” “very
important,” or “extremely” important in their decision to pursue entrepreneurship
- More than 68% cite that it was important to capitalize on a business idea they had
- 66% felt that the culture of a startup was appealing
- 64% had always wanted to own their own company
- and 60% did not want to work for someone else
Source: Kauffman Foundation
If any of the motivations above resonate with you, you just might be an entrepreneur at heart! In order to help you figure out if entrepreneurship is right for you, we’ll move on to several posts that will highlight the impact entrepreneurial alumni at top schools around the world have had, and provide some critical perspective on schools/programs you may want to consider applying for in order to pursue an entrepreneurial future. Be sure to stay tuned and check back soon.