What motivate people to start and grow their business? Is there any source of motivation for starting and growing business even when research has shown that more than half of all startup businesses fail in less than two years of commencement. Also, a large number of those business that survive the first two years hardly grow. So, it is only few business that survive, grow, regenerate and even create other business.
In spite of business failure, yet people still start their own businesses on a regular basis. The question we often asked is what motivate people to start and grow their business? Obviously, there are various reasons and motivation of an entrepreneur. Entrepreneurs tend to make critical investments, take acceptable risks and learn consistently because of their desire to make money and enjoy all the rights and privileges that come along with wealth. Other reasons include improved social status and well-being, greater opportunity for philanthropy and community services, and gaining control over their own destiny.
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What Motivate People to Start and Grow their Business
Starting a business is something that many people think about at one time or another during their lives. Motivations for wanting to become an entrepreneur can vary greatly. Common motivators can include escaping the corporate grind, taking greater advantage of special skill sets, supplementing income or a strong drive to achieve personal or financial success. What Motivate People to Start and Grow their Business includes:
1. Profit motive
Profit motive is an undisputed motivation of an entrepreneur. The aim of many business startup is to achieve higher profits and provide better returns for shareholders. The stock market valuation of a firm is influenced by expectations of future sales and profit streams so if a company achieves disappointing growth figures, this can be reflected in a fall in the share price. This opens up the risk of a hostile take-over and also makes it more expensive for a quoted company to raise fresh capital by issuing new shares.
Profit motive defines businesses, meaning that it is one of the core premises upon which businesses are set up and operated. Businesses endeavor to earn the highest possible revenue at minimal expenditure to produce the highest possible profits to be distributed to their owners and/or investors.
2. Market power
An entrepreneur may establish a firm just to increase market dominance through pricing power. This market power can be used as a barrier for entry of new business in the long run. Larger business can build and take advantage of buying power.
3. Risk management motive
Starting a business might be motivated by a desire to diversify production and/or sales so that unforeseen falling sales in another business in which the market might be compensated by stronger demand in the new sector.
4. Managerial motive
Behavioral theories of the firm predict that business expansion might be accelerated by senior and middle managers whose objectives differ from major shareholders.
5. Independence
Independence means an entrepreneur working for themselves and running their own business. They will also make their own key business decisions. A desire for independence is a common reason for an entrepreneur to set up a business.
6. Desire to be a Boss
Being your own boss enables an entrepreneur to control the business and make decisions about how it is run. These decisions may relate to what the business sells, where it buys raw materials from, and how much its product or service is sold for.
Some entrepreneurs start their own business because they want to be their own boss and in charge of all of the day-to-day operations of a company. The entrepreneur wants to be the one making the important business decisions, determining the direction the company will take, making the call on product development and marketing and being responsible for every aspect of the company’s operation.
7. Financial Need
Some entrepreneurs are driven to start their own company out of necessity. If a job does not offer enough income, an entrepreneur might start a side business to generate extra income that can turn into a full-time business.
8. Business Involvement
An entrepreneur is sometimes motivated to start a business because he has the desire to become involved in all aspects of company’s operation. The entrepreneur wants to be part of the product design team, sales, marketing, engineering and production. An entrepreneur has a very specific way that he feels a successful business should be run, and this motivates the entrepreneur to start his own business and get directly involved.
9. Accomplishment
To some entrepreneurs, having a successful business brings a feeling of accomplishment. They feel that they are offering a valuable service to their customers, and they pride themselves on doing the best job possible. Many entrepreneurs give back to their communities through charitable donations and by participating in charitable events. This feeling of accomplishment and pride is an important factor in starting a business.
10. Self-Fulfillment
If you feel that your company is not utilizing your talents properly, starting a business can allow you to maximize your abilities and create a sense of fulfillment. For example, if you’re a police officer whose investigative skills are not being put to the test, you could consider starting your own investigative agency where you can make full use of your abilities.
11. Second Career
If you’re a retiree, starting a business can take the form of a second career. People who retire early from a job may have the desire to continue working. Older retirees may feel that they need additional income or have concerns about how long their present retirement benefits may last. Starting a business in retirement can also allow for pursuing a passion in addition to providing income.
12. Passion
The passion you feel as an entrepreneur – for the startup life, for your company, for your vision – is all-encompassing. You’re driven to succeed, to experience everything a startup has to offer, and to make things happen. P1assion is a prerequisite to starting a business, and it’s also a huge motivator, because through your startup you fuel your passion.
13. Creating Value
Entrepreneurs are builders. Creators. We need to produce “stuff” in order to succeed. And that “stuff” needs to create value. It’s extremely motivating to know that something you’ve started has created value for others. And part of creating value is contributing to the entrepreneurial community on a whole. For me, this is a particularly motivating factor; I’m able to build a company, blog about it and communicate to others about my experiences.
What are the Types of Entrepreneurs Business?
Entrepreneurs are found in all types of industries, and every business was founded by someone who possessed the characteristics of entrepreneurship. Some entrepreneurs are satisfied with keeping their businesses small and manageable, while others seek to grow their operations into something bigger than themselves. You’ll find entrepreneurs at your local farmers market, selling finished goods on craft websites, and laying out the groundwork for a software startup. Here’s a look at the most common types of Types of Entrepreneurs Business:
1. Large company entrepreneur
A large company entrepreneur is someone who works for a large corporation and uses their entrepreneurial characteristics to help the business. They may find themselves forming beneficial partnerships with other businesses, identifying smaller companies for acquisition, and finding growth opportunities from within the business.
2. Small business entrepreneur
A small business entrepreneur is someone who runs a business by themselves or with the help of a handful of employees. They’re the most common type of entrepreneur because they work for themselves by selling goods and services through a variety of outlets and agreements.
3. Scalable startup entrepreneur
A scalable startup entrepreneur expects their business idea will take off quickly and needs the capacity to expand in response to demand. That means the entrepreneur has to be nimble, flexible, and capable of foresight to know when to add more of what they need to keep customers happy. This type of entrepreneur also works with peer advisory groups to avoid making mistakes and learn how to recognize when it’s time to make a move.
4. Innovative entrepreneur
An innovative entrepreneur is someone who identifies a problem and seeks to solve it by using techniques they’ve developed. They look for new ways to approach a problem, identify ongoing problems that need resolution, and find workable solutions that make it easier for a process to be carried out.
5. Social entrepreneur
This type of entrepreneur engages in businesses that are designed to serve the greater good. They seek to help people overcome their struggles, find ways to make a community a better place to live, or sell products that help the environment or are environmentally friendly.
How Mindset Influences Business Success
Business mindset has a significant impact on entrepreneurial success. Whether you’re just starting out or are an established business owner, understanding the power of mindset can transform your approach to business and life. If you’re operating your business without the right mindset, things might cruise along well for a while. But the pitfalls are clear. Operating with the right mindset is a key part of your business success.
A business mindset is the ability to make decisions and navigate situations from a business-oriented perspective. It’s an understanding that decisions should support the objectives, vision, and profitability of the business. A business mindset can be a critical factor in a business’ success. People with the right business mindset understand the unique values and insights they bring. Entrepreneur with the right business mindset understand:
1. Goal orientation
Entrepreneur with the right business mindset are highly focused on their goals. They understand where they want their business to be and make strategic plans to get there.
2. Risk management
Entrepreneur with the right business mindset understand balancing and managing a business’ risks and rewards, while making the calculated decisions necessary for sustained growth.
3. Innovation
Entrepreneur with the right business mindset have the mental agility to think creatively and remain open to new ideas. This innovative thinking brings a competitive edge to businesses through new products or services, or new ways of doing business. Successful business innovation means coming up with ideas and implementing them.
4. Resource optimisation
When you have a business-focused mindset you will understand the value of resources and the importance of using them efficiently. This includes time, money, human resources and any other assets that the business has at its disposal.
5. Resilience
Business often involves setbacks and failures. A business mindset includes the resilience to weather these challenges and learn from them (utilising a growth mindset!) to improve and drive forward.
6. Customer focus
This type of business mindset means understanding and prioritising the needs of your customers. This customer-focused approach can help to build strong relationships and customer loyalty.
7. Continual learning and adaptability
The business environment is dynamic and constantly changing. A business mindset includes an ongoing commitment to learning and adapting to keep up with these changes.
There are so many advantages to having a business mindset in your work. But, on the other hand, running your business without one can lead to significant challenges.
- Lack of direction. Without a business mindset, you will lack clear goals and strategic direction for your business. A clear vision and a plan to get there are key to making informed decisions and knowing which opportunities to pursue and which to avoid.
- Increased risk.A business mindset involves considering the potential risks and rewards of decisions relevant to your business. You may be taking unnecessary or uncalculated risks that could lead to financial losses or other challenges.
- Stagnation. Without a business mindset, you might miss opportunities for innovation or change. This could result in your business becoming stagnant, and see you essentially ‘treading water’.
- Inefficiency. Part of a business mindset is understanding the importance of resources and using them efficiently. The misuse or waste of resources could lead to higher costs and lower profitability.
- Poor customer satisfaction. A business mindset is customer-focussed. If you fail to consider the needs and wants of your customers, you may lose them to your competitors.
