What Motivate People to Start and Grow their Business

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, the question 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. What Motivate People to Start and Grow their Business includes:

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.

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.

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.

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.

Being your own 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.


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.

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