Motivations for entrepreneurship

MOTIVATIONS FOR ENTREPRENEURSHIP

Accelerate your business with these expert tips on "The motivations for entrepreneurship". Analyse and discover this TIP!

The The main motivation of entrepreneurs is "to generate wealth or a high income" (60%), and 40% say they set up their business to "earn a living, because work was scarce", according to the famous GEM report carried out in 60 countries.

Other studies agree that motivation is:

  • 70% entrepreneur by opportunity
  • 25% entrepreneurs by necessity, last resort Self-employment...beware!...high level of failure.

The economic crisis and the scarcity of employment, mean that in just one year, those who undertake for this reason have gone from 47% in 2019 to 72% the following year.

According to the GEM report, the main motivation for entrepreneurship in Spain is to earn a living. 

This figure breaks the trend observed in recent years where generating wealth or enjoying a higher income reached 55% of the population. This ratio declined in 2020 to 35%.

It is important to take into account that it is within the group of those who start out of necessity for a job that the highest failure rates are recorded.

Globally, North America leads with 82% of opportunity-driven entrepreneurs, followed by Europe (75%) and Asia and Oceania (74%). In Spain this index is around 70%.

We share the motivational study carried out on the entrepreneurs who carry out the programme mentorDay acceleration programme:

I always wanted to undertake54.56%
I saw a market opportunity47.16%
I wanted a change in my professional life41.40%
Other (please specify)13.07%
I joined a project that interested me11.36%
I was unemployed10.80%

 

The entrepreneur wants to leave a footprint behind him. It does not seek only a legitimate economic benefit from its activity. In addition, it wants its initiative and efforts to contribute to improving the lives of its customers, suppliers and collaborators. 

Create wealth and employment is one of the most important motivations that entrepreneurs refer to when starting up their businesses.

The modern entrepreneur is a person who learns to share objectives, to look for synergies with others, always seeking to obtain some kind of shared benefits. 

The networking is therefore another of the most attractive aspects of entrepreneurship.

On a more personal level, the entrepreneur has other equally mobilising motivations, such as being able to achieve a work safety difficult to have in paid employment. In this sense, entrepreneurship is increasingly becoming the great alternative to unemployment. 

Another benefit consists of being able to direct one's professional career in the areas that interest him/her most; being sovereign in decision-making makes the entrepreneur a much more decisive person and more consistent with the results of these decisions.

Many entrepreneurs aspire that their business will allow them to achieve financial freedom and an improvement in their quality of life and that of those around them. 

We highlight other motivations that lead many people to become entrepreneurs, of course not all of them are fulfilled at the same time in the same person. Often just one of these reasons is enough to make you want to start a business:

Time flexibility

Being an entrepreneur gives you the freedom to organise your time as you wish, i.e. you set your own schedule. It is true that you will have to work long hours, especially at the beginning, but you will have the freedom to organise your time as you wish.

Free time

In the beginning you will work more than ever for less money. But if you do it right, you will learn to master your schedule and you will soon be able to enjoy the freedom of entrepreneurship.

The value of money

When you earn €1,000 with your company, it is worth much more to you than if that €1,000 was paid to you in the form of a salary when you work for someone else. Your €1,000 is worth much more than the €1,000 paid to you by someone else. You can be happier earning less money!!!

Personal realisation

When you build a business with your own hands the feeling is very rewarding. The realisation of one's own project cannot be compared to an employed job.

Workplace safety

Have you ever been sacked, if so you understand!

As an entrepreneur, your security lies in the fact that you are your boss. When you are your own boss, you can be sure that you will not be fired. Although it may not look like it, being an entrepreneur will bring you a lot of job security. 

Motivation

When you are living a dream, it is much easier to keep your motivation high. Going to work every day will be a thrill and an exciting challenge. It's funny, but it takes a lot less effort to get up early when you go to work for your own company.

Learning

Entrepreneurship is a constant and enriching learning process. You are always listening to your customer, analysing your sector, studying your competition, talking to experts and your mentors. 

Acquire new skills

An entrepreneur, especially at the beginning, has to be able to do everything: marketing, sales, accounting... You will broaden your knowledge and become a much more complete professional. As you grow up you have to learn to delegate.

Determination

As a business owner you will have to make many decisions. This will make you a much more decisive, decisive and practical person, which will also help you in your personal life.

Financial independence

Probably the main reason for many to start a business. Economic risk also brings with it an advantage: financial freedom. This is, without a doubt, One of the main reasons for entrepreneurship!

Contacts. Networking. Social relations

Entrepreneurs are creatures of the community. We love getting to know each other, sharing stories and learning from each other's experiences. The entrepreneurial spirit will lead you to meet other people who have also created their own business to share ideas and, why not, make synergies.

Starting to work in a shared office can be very interesting for your business. coworking.

Making a mark

Change the world. Take a look at Elon Musk, Bill Gates, Steve Jobs, Sergey Brin and several entrepreneurs who have changed the world.Your business, whatever it is, will have an impact on people's lives!

You offer a service or sell a product that solves a problem or covers an important need of a customer segment and therefore improves someone's life. This is another of the most valued reasons for entrepreneurship!

Creating jobs

As your business grows, you will hire others and create jobs. Your business offers them the opportunity to learn, support their families and develop professionally. 

There is nothing more satisfying than knowing that you are responsible for the success of your employees. Your company offers them an opportunity to learn, support their families and achieve their dreams.

Professional career

Create your own professional path and develop your career. You will never feel stagnant and will be able to cover the areas that interest you.

Alternative to unemployment

If you are unemployed, setting up your own business will allow you to get back on your feet and make a fresh start!Many people have decided to become entrepreneurs for this reason! 

A story to tell

When I tell someone I run my business, they always want to know what I do and how I do it. I can tell the story and the best part is that I decide the chapters.

Pride

When you build something successful, you have a great feeling. You had a vision, you were able to execute it and you receive the benefits of saying "I did it".

Your posterity

If you own a business you can pass it on to the next generation.

Doing good

Although this is not exclusive to entrepreneurs, it is a benefit. You control where your company's money goes and you can decide whether to donate to a foundation or to create a CSR as DYRECTO has done by creating its CSR called mentorDay.

New at

As human beings we love novel experiences but doing so is not easy if you are always in a cubicle. In entrepreneurship you will always face a new challenge.

Mentoring 

Having mentors and being able to become a mentor in the future is a great experience. Learning from the masters and helping the less experienced gives you a great sense of satisfaction.

Expert

Become an expert in your sector, your product.

Skills

As an entrepreneur, you will be forced to learn and develop many skills in order to survive.

Determination

Everything I have done as an entrepreneur has affected my personal life. Being an entrepreneur has forced me to be more dedicated and determined.

Acknowledgement

Although this should not be the only reason for entrepreneurship, it is a very satisfying feeling to receive recognition from the community.

Any of these reasons for entrepreneurship can become the reason why you take the plunge. It will be a sometimes hard but very rewarding journey.

If you've ever thought of becoming your own boss, why not now?

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TASK

Now that you have read this TIP, you should be able to answer these questions:

  1. In the list of motivations, indicate with a 5 the one that most motivates you to become an entrepreneur or put them in order by placing the ones that most motivate you at the top. Rate from 1 to 5 each of the typical motivations for entrepreneurship, giving the highest rating to the ones you like the most.

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Picture of Jaime Cavero

Jaime Cavero

Presidente de la Aceleradora mentorDay. Inversor en startups e impulsor de nuevas empresas a través de Dyrecto, DreaperB1 y mentorDay.
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