According to a 2012 study by the Global Entrepreneurship Monitor, nearly 400 million entrepreneurs exist in 54 countries. In the United States alone, a study conducted in 2011 by Kaufman Index of Entrepreneurial Activity showed that 320 new businesses are launched for every 100,000 people, which translates to 20 million entrepreneurs every year.
Industry statistics in North America and Australia revealed that 98% of new companies registered every day are small businesses. A 2014 study on the distribution of sources for Canada’s gross domestic product highlighted the fact that 24% come from the revenues of small businesses.
Although no indicative figure exists on the total number of entrepreneurs worldwide for the end of 2014 fiscal year, we can safely assume that the figure is close to one billion. To put that into perspective, one billion represents 14% of the world’s population. These figures indicate that a significant majority of people want to own a business and to become entrepreneurs.
There are several definitions of what an entrepreneur is. At the heart and soul of it all, an entrepreneur is a risk taker. He or she wants to be in the driver’s seat and to take responsibility of navigating the business though the journey of entrepreneurial success.
Starting a business is one thing; however, sustaining it has historically been proved to be a great challenge. In a study by the Bureau of Census on the sustainability of start-up businesses, only 29% of businesses surveyed remained operational during a 10-year period.
Moreover, it doesn’t matter which part of the world you are in. Starting a small business carries a great amount of risk because your access to capital is limited. There have been stories of entrepreneurs who risked it all to support their enterprise only to lose their homes and relationships.
Despite the great risk, why do people still want to become entrepreneurs? Why not just take a regular 9-to-5 job, work hard, and get paid every 15 days like most working class people?
There are myriad reasons why people want their own business. If we were to identify just one that would define the call of entrepreneurship, it would be because entrepreneurs are driven by the idea of finding an activity where productivity is measured precisely by effort. You could be the project manager who was responsible for your company’s winning on the multimillion-dollar bid. However, all you will obtain after all your efforts would be a salary adjustment and maybe a pat on the back. In the meantime, the stockholders are sharing ideas on how to spend the year-end cash dividends.
So you’ve decided to become an entrepreneur and start your own business. Now comes an important question, “What business should I get into?”
You’re not alone in arriving at the career crossroads. Notwithstanding statistics, most would-be entrepreneurs like the notion of owning a business but have no clue on how to start. The natural course of action is to get into a business where the industry appears to be thriving.
In the Philippines, one of the most popular industries to get into is food retail. Visit any mall or commercial establishment in the Philippines, and the only tenants that have regular activity are apparently fast food restaurants and food carts. The food court is always packed at any time of day.
Inspired by the thought of achieving the same frenetic pace of service, you decide to get into the restaurant business with the goal of opening two new branches per month. Until reality bites, you realize firsthand the business conundrum. High volume equates to low margins. Food is a demand-sensitive product because consumer tastes and preferences change unpredictably. Philippines is primarily a net importer and most of the raw material for your food items are imported, which drives up food cost and lowers margins.
The combination of diminishing volume and margins has put you in a quandary: “Should I increase volume by creating high-value meals but compromise my margins?”
You know it is time to cut losses when you find yourself in that quandary.
This scenario brings us to what this article is all about: finding SUCCESS as an entrepreneur.
Also, the answer is much simpler than you think and is close to home! In fact, you’ve known it all along but you were rendered blind and deaf by your pursuit of achieving the success of others.
Before you ask yourself what – find out why you want to get into that kind of business.
- Is it money?
- Is it fame?
- Is it glory?
- Is it because it is your passion?
- Is it because you want to help others?
- Is it because you want to make a difference in other people’s lives?