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13 reasons why people start their own business

13 reasons why people start their own business

Reasons You Should Start Your Business Today

1. You Can Find Freedom

Freedom is that the golden promise of entrepreneurship. Over and once more, entrepreneurs that we interview for Foundr Magazine point to autonomy, to independence, as a key driver of their decision to start out a business.

This isn’t just a bit anecdote I’ve noticed. It’s an enormous reason that individuals become entrepreneurs.

why people start their own business

In 2008, the tutorial International Entrepreneurship and Management Journal released stats from a world survey of early-stage business owners. Independence was the foremost common reason these people gave for starting their business:

Within the 25 countries, the study checked out, a mean of 38% of beginning business owners cited independence as a motivation.

Independence served as a reason for 35% of entrepreneurs within the US and 39% within the UK.

In Australia and Japan, 57% of beginning owners pointed to independence as their motivator.

Why does this fervor for freedom move people to hurl themselves into the crazy world of business? Freedom has more control over the course of your life, having the facility to direct it within the ways in which you would like, instead of working for the whims of others.

Owning your own business means being your own boss, deciding after you work, how you're employed, and what you're employed on.

Of course, business owners still do have to cater to plug demand. But after you become the business owner, you select the way to do this. It gives you greater autonomy.

2. You’ll Build a Source of Pride

Accomplishing tough things gives us a way of accomplishment.

Pride isn’t just a sin. In healthy doses, it bolsters your self-worth and allows you to take credit once you achieve something worthwhile (like creating a successful company).

Starting atiny low business isn't any small venture. You’ll obtain it in sweat, working hard to maneuver onward. But that’s okay because entrepreneurs don’t fiddle effort or retreat from a challenge. We aim to try and do big things.

There aren't any participation trophies in entrepreneurship. after you succeed, you’ll know it’s worth celebrating.

Man Holding Umbrella

The Journal of Business Venturing conducted a survey of 405 entrepreneurs and saw that nearly 65% went into business a minimum of partly because they wanted to attain something and be recognized for it.

While some humility continues to be important, that pride and recognition can boost your self-esteem. Why care? A review of research literature published by psychology within the Public Interest found that self-esteem works some pretty great magic. It gives you:

  • More confidence in group settings
  • More persistence
  • Greater happiness

3. You Can Do Things Better

No existing company does everything right. Waste and inefficiency do saddle the private sector, and beyond the record sits the straightforward indisputable fact that we haven’t yet invented everything that might improve the planet. One reason to begin a business, then, is to travel after these problems.

Think about your lifestyle. Is everything perfect? No. a minimum of now and again, you encounter things that annoy, pester, and drain you. you want there was how to beat these issues, but there isn’t, so you sigh, complain, and go, hoping that someday it gets better. But if that’s you today, it doesn’t must be, because each little annoyance you stumble into can be a business opportunity. There’s another approach:

  • When you have an issue in life, ask yourself: Does a decent solution already exist?
  • If not, do people have this problem?
  • If they do, consider starting a business based around a brand new solution to your problem.

For example, traditional Q-tips posed a security problem to people’s ears, so one California team created the Oto-Tip, which aims to resolve that problem (and netted them $77,000 in crowdfunding money to bring their company to life).

Top view composition of white spiral copybooks with inscription Do What You Want placed on white cloth with burning candle and tender flower

A few young men within the 1970s saw an issue with the problem and complexity of private computing, in order that they tried to resolve it by creating a brand new package. Today, we call that company Microsoft.

If you'll relieve a pain point for people, then you've got a reason to travel into business.

4. You Can Make Money

A successful business could earn you tons of cash. Arianna Huffington, the founding father of HuffingtonPost, has an estimated net worth of $100 million. Richard Branson, the entrepreneur behind Virgin, had a net worth of $4.3 billion. Then there’s William Henry Gates, who started Microsoft. He’s sitting at a pleasant $115 billion.

A Person Watering Plants

Money could be a big reason that a lot of people start businesses. The International Entrepreneurship and Management Journal study i discussed earlier points out that, across the 29 countries examined, a median of 23% of entrepreneurs are in it (at least in part) to extend their wealth. While it’s a standard motive, the proportion of entrepreneurs who embrace it varies between countries. Here’s a sampling:

  • Australia: 11%
  • United Kingdom: 15%
  • New Zealand: 26%
  • Mexico: 30%
  • United States: 35%
  • Chile and Greece: 42%

While the variations between countries are intriguing, the most takeaway for our purposes is that many people start businesses because they require to create money.

Of course, money isn’t everything, so wealth isn’t the sole motivation that these entrepreneurs have. It’s only 1 reason among many. whether or not you are doing care lots about money, it’s true that the majority people, even most successful entrepreneurs, won't reach the stratospheric wealth of Huffington, Branson, and Gates. But respectable amounts of cash do matter, and might even cause you to happier.

It’s said that money doesn’t buy happiness, but that old adage doesn’t quite jibe with modern research. Some scholars say that after a specific amount of income, extra money doesn’t cause you to happier. But even they conceded that up until that time, more cash does help.

reasons for starting a business

If this research is true, then a successful business could catapult you over the cutoff line.

But this isn’t the ultimate say on the matter. a special set of researchers contends that there isn’t a cutoff point–that more income always causes you to happier (or, at least, that regardless of the cutoff is, we don’t have substantial numbers of individuals who’ve reached it). The Wall Street Journal graphed the study results:

reasons for starting a business

I think that these empirical findings, while interesting, underscore the very fact that this issue isn’t sort of a clear, crisp day. There’s plenty of fog, and you have got to work out what works for you, how you'll best balance the drive for money with other parts of the great life.

 

But regardless of what proportion you care about money, it isn’t the sole reason to give some thought to starting a business. Let’s keep researching the explanations.

5. You’ll Learn New Skills

Don’t think that you simply need an MBA (most of the successful entrepreneurs profiled by Foundr don’t have one). This isn’t the company world–starting your own business could be a different critter, and in many cases, you'll be able to acquire the entrepreneurial skills you wish as you go.

In fact, many folks start businesses because they require to be told new skills. It’s a dynamic thanks to grow your know-how.

When learning new skills, the sky is that the limit. And if writing could be a skill you improve, you would possibly begin avoiding stale cliches just like the one I just used.

Just a touch ago, i discussed the Journal of Business Venturing survey. It also found that education could be a big reason that entrepreneurs go at it: 65% of the people interviewed said that they started their business, a minimum of partly, to stay learning.

Concentrated little girl painting in coloring book at home

Why does learning fill most of the plate here? Starting a business takes over your idea. you would like the abilities to create it a reality and produce in customers. Entrepreneurship helps you to learn those skills as you go and apply them along the way.

Since you most likely can’t be an expert in everything, you'll be able to also pay others to try to to a number of this stuff (hey, us freelancers must stay in business somehow). But the more you learn, the more you'll be able to do yourself.

Okay, so starting a business can facilitate your learn new skills. Why do you have to care?

First, I’d say that learning is fun. having the ability to try and do new things is simply plain cool. But second, it carries psychological benefits, since learning new skills boosts your memory, whilst you age.

Besides, in a very world that seems ever-quickening, maintaining has it’s perks. Joyce E. A. Russell, vice dean at the University of Maryland’s Robert H. Smith School of Business, put it well:

“All round the world, people are going back to highschool, taking online courses, mastering additional languages, etc. — beat the spirit of growth and continual learning. With today’s more complex business environment, learning isn't just a pleasant thing to try to to — it's essential for staying on top of things.”

READ MORE: the three Best Low-Cost Businesses to begin with $1,000 or Less (Even $0!)

6. You Might Lower Your Taxes

This obviously won’t be your chief reason for starting a business, but it helps. As alittle business owner, you'll be able to get tax breaks that facilitate yourr business–and even tax breaks that ultimately help you as a personal.

 

(Just a fast disclaimer: I’m no tax expert. you ought to hunt the laws in your country and talk over with a financial professional before making any decisions or taking any deductions.)

 

Since I board the US (and the foremost readily available online reading focuses on the US), I’ll specialise in what the Americans reading could get for his or her taxes by starting a business. Here’s the primary bit, from the widely beloved IRS itself:

 

“Business expenses are the value of carrying on a trade or business. These expenses are usually deductible if the business is operated to form a profit.”

What this suggests, per the Houston Chronicle, is that you simply might get to deduct things like magazine subscriptions, phone services, travel mileage, and membership in professional organizations. Heck, if you're employed in an exceedingly main office, you may be able to swipe a number of your rent off taxes. If you wish something to run your business, then it would qualify for a deduction.

 

The IRS also helps mitigate risk for American entrepreneurs. in keeping with Mashable, you'll write off any losses from your business, which suggests that a side business could help your return.

 

Over on his blog, Steven Chou calculated that the typical American could get something sort of a 10% write-off by having a business.

 

Tax laws vary from country to country, so you ought to take a look at how your country handles business taxes.

7. You Could Create Jobs

If you begin a corporation, you would possibly sooner or later must hire employees. thereon day, you’ll have created a chance for somebody else.

Sure, once you first start out, your business are going to be small. But that’s grand, because it’s often small businesses that make jobs. for instance, the US Bureau of Labor Statistics (BLS) reports that little firms create 64% of recent jobs within the US.

And let’s not just examine the raw number of latest jobs. There’s more to that. because the owner of an organization, you'll treat your employees well, create a stellar company culture, and make people desire they’re involved in something that’s worthwhile. Be the boss you would like you had (or, perhaps, emulate an excellent manager you’ve worked under).

I wouldn’t be scripting this article if Nathan hadn’t created Foundr. i like this gig, and it’s a chance that never would’ve existed if Nathan hadn’t started his business. These are the tiny things that make a difference in people’s lives.

8. You Can Follow Your Passion

Whether to start out a business could be a decision you need to make. There’s another thing you get to decide: what that business does.

One reason to begin a business is in order that your job is something that thrills you. the majority would like to have work that centers on something they care deeply about. It’s time to interrupt out your passion.

Let’s get real: not everything you enjoy could make a business that creates money. Let’s use a silly example. i like watching The Colbert Report, but nobody can pay me to observe it. whether or not the show wasn’t ending, nobody would pay me to look at it.

Superstar entrepreneur Chris Guillebeau points out this reality in his book, The $100 Startup (a short read that I readily recommend).

 

Chris Guillebeau $100 Startup

But you don’t need to surrender on turning your passions into a business–you just have to be pickier. Not everything will work. But something might.

What’s the trick? Convergence. take a look at the diagram on the correct. Chris explains that you just have to consider your passions and what people are willing to spend money on.

You will find your business idea where those two overlap. That’s how you'll be able to agitate a successful business while still engaging your passion.

That’s exciting. But it’s over that because it’s also useful. Passion doesn’t just make a business fulfilling–it might make it successful. There isn’t much research during this area, I’ll admit, but a 2012 paper within the Human Resources Management Review suggests that the work that has been done shows that zeal for the work contains a direct, significant effect on company growth.

9. You Can Live With Excitement

Freedom, money, skills, pride, passion–and uncertainty–all blur together to spawn excitement. Starting a business can get you pumped!

Entrepreneurship amounts to an ever-changing challenge. New things pop, big goals loom ahead, and you’ve ought to hustle, hustle, hustle. you simply must spend a small amount of your time within the blogosphere’s entrepreneurial niche to work out that it’s an exciting environment.

Entrepreneurship could be a race to beat obstacles and a grand journey into uncharted territory and a jaunt to a crazy pleasure ground whose rides you built.

These are metaphors that describe starting a business, and that we can learn lots from the metaphors we use. A study within the Journal of Business Venturing found that several of the metaphors we use to speak about starting a business “are dynamic in nature, emphasizing the constant drive forward, the thrill of the method, and its creative nature.”

That’s key: the thrill of the method. What the study points out may be a reality that you just can see for yourself if you read blogs about entrepreneurship, a reality that in some ways, starting a business isn’t only about the corporate you’re creating.

It’s about how you get there, and therefore the intersection between dreams of the long run and also the process at once can exhilarate.

10. You Can Leverage the Internet

Foundr is entirely online business–and it works. the net is fertile soil for business growth.

Businesses can leverage the web to advertise, blog, poll customers, sell products, and reach a wider audience than ever before. Fortune sums up why the net could be a mighty reason to begin a company:

“There’s likely been no better time to be an entrepreneur. you'll be able to reach global markets, use technology to own smaller and smarter back office operations, and every one the while, still be nimble and build innovative products and services.”

There’s a word for all this buying and selling on the Internet–ecommerce–a word whose importance has been magnified by the expansion of online businesses. It’s not here to sprint, pant, and die. It’s here, marathon-like, for the future.

 

The Internet also offers a bunch of tools that make starting a business easier. for example, the facility of the online allows you to collect data on visitors to an organization website, which you'll analyze and use to tell A/B testing.

11. You Can Escape the Rat Race

The beginning of a Huffington Post article really struck me:

Have you had enough of the nine-to-five (or should they call it the seven-to-seven?), the pointless rounds of meetings, and wondering if this is often what life’s really about?

That’s dismal. That’s dreary. And for too many of us, that’s what their job appears like. Sixty-five percent of yankee workers, as an example, are unsatisfied with their job.

The article quoted above is titled “10 Tell-Tale Signs you're able to Leave the routine,” but I’m undecided we'd like a commentary about those signs. such a large amount of people feel worn down by their careers that we’ve invented this term–rat race–to describe how futile it sometimes seems. Seriously, it’s in Urban Dictionary:

For many, the answer is to flee the routine by starting their own business. It’s a reason that differs from most of the previously listed ideas in one key way: during this case, you’re starting a business to not get to something (money, passion, freedom, etc.), but to induce far from something (the rat race).

 

It’s what geographers and sociologists call a “push factor.” Some people are pushed into business by the crushing reality of the modus operandi. Alongside a number of the opposite reasons I’ve listed, it will be a strong motivator.

This push factor is real. A whopping 40% of Australians are unhappy with their job. UK workers are more dissatisfied than workers in other European countries. Job satisfaction stands–no, lays wounded–at its lowest level in 20 years.

A business of your own isn’t easy or stress-free, to be sure. But it’s yours: the liberty, pride, and fervour of entrepreneurship make it a good alternative to the modus operandi. There’s another a part of all this, too.

Not only do many of us hate their jobs, but many sleep in fear that they’ll lose their livelihoods: but 1/2 American employees, as an example, feel that they need job security.

2020 has seen many millions if not billions of individuals suddenly out of labor or facing “job jeopardy”. Losing your job is catastrophic, so it’s no wonder that millions upon millions are now turning to side-hustles and startups to stay their finances afloat during these uncertain times.

12. You’ll Have Meaning and Purpose

A business may be an amazing source of meaning in your life.

 

Meaning, or purpose, matters. It differs from happiness, which I talked a bit bit about earlier, therein happiness is formed of moment-to-moment pleasures, while meaning stems from an overarching sense of purpose.

 

Starting a business may be a grand project. If you’re serious about it, then it immediately carries purpose.

 

Commitment strengthens that sense of purpose, and ownership strengthens commitment. In one neat experiment, researchers ran an experiment that divided the test subjects into two groups of individuals for a lottery. Members of 1 group were randomly assigned variety for the lottery, while members of the opposite group need to write down variety of their choice.

 

When the researchers offered to shop for back the lottery tickets, the people that had chosen their own number demanded, on average, five times the maximum amount money for his or her ticket, although their choice didn’t give them a statistically higher shot at winning the lottery.

 

That shows the ability of ownership. It brings commitment. folks that own their own businesses are committed to that, which strengthens their sense of purpose.

 

Freedom and pride and excitement and commitment collide to create meaning—that sense of purpose, of drive, of overwhelming worth. i feel we are able to agree that a meaningful life could be a desirable life. But if you don’t buy that, consider the actual fact that a life without meaning can actually be unhealthy.

A team of researchers checked out organic phenomenon, which is when the data coded in a very gene is employed to create a protein or another cellular product. In a way, organic phenomenon activates certain genes. When you’re under lots of stress and adversity, your body activates more inflammatory genes. What the scientists found built thereon understanding—and twisted it in new directions.

 

When staring at the organic phenomenon profiles of the adults within the study, the researchers saw that top levels of happiness, rather like adversity, turned on inflammatory genes. the matter thereupon is big because they noted that this sort of undesirable inflammation can result in cardiovascular disease, neurological disorder, and cancer.

 

But the findings aren’t all sky-is-falling awful. While self-indulgent happiness alone might spell bad news, the scientists found that prime levels of meaning clamped down on inflammatory genes. Striding through life with purpose can boost your health.

13. You Can Innovate

Innovation drives economies forward. It propels the engine of human advancement, bringing us new technology and new solutions. Also, it’s really, super-duper cool.

Starting an innovative business would let you be a part of that. Many entrepreneurs have sprung into action due to a desire to innovate.

Is this whole innovation thing nothing more than one buzzword and a pair of dice? Nope. The Global Entrepreneurship Monitor’s 2013 Global Report found that lots of entrepreneurs innovate in entirely new ways. Here’s a graph from the report:

start an internet business

14. You Might be Able to Bootstrap

You don’t always need lots of cash on hand to start a business. Look at Foundr!

Some people fear starting a business because they don’t have trainloads of cash to dump into it. While capital helps, however, you don’t always need a huge investment to launch a successful venture. Credit cards, loans, and venture capital aren’t the only answer. There’s bootstrapping.

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