Is entrepreneurship right for everyone? 🧐
I'll get straight to the point: No, despite what certain "business influencers" would like you to believe, entrepreneurship is not a great idea for everyone.
90% of startups fail, and 10% fail within the first year. And in the small business realm, the data looks about the same! Approximately 65.5% of small businesses fail, with 18.4% failing in the first year.
Across every industry, this data is close to the same. Why is the failure rate so high? Well...
- 42% fail because they misread market demand: To have a successful business venture, you need to understand what the market wants.
- 29% fail because they run out of funding: When you start your own business, you need to know how to fundraise, track your financial statements, understand your cash flow — the list goes on.
- 23% fail because of a weak founding team: There's no chance of success without a strong foundation to support your growth.
To be clear, I'm not highlighting this data to discourage anyone from going after their dreams. I want to paint a realistic picture of what someone is up against if they choose this life because so many people promoting this lifestyle aren't clear about the reality.
Why so many employees leave to start their own business 🏃💨
Did you know that 43% of Americans aim to start a new business in 2022? And, on top of that, one-third are first-time entrepreneurs. 😲
What could possibly be driving this?
Guidant Financial's 2022 small business owner survey revealed the three biggest reasons behind what drives people to take the risk:
- 60.87% of people wanted to be their own boss
- 47.64% of people expressed dissatisfaction with corporate America as the reason behind their new venture
- 31% of people see the entrepreneurial life as an opportunity to pursue their passions
At a glance, this data seems almost impressive. So many people are pursuing their dreams? Going after what they want?
But, to be frank, this data worries me. 😬
Are these many people dissatisfied with their careers? Are offices not offering the flexibility and growth opportunities people clearly desire? Do companies not find ways to help employees mix their passion with work?
If someone's job pushes them out to the point they want to risk starting their own business — is that really a reason to celebrate?
Reduce the risk for your employees by understanding what they want — and keeping them around 🤝
Despite all the risks involved, people still choose to start businesses. They take their business idea and run with it because they either don't understand the reality or they don't care about the reality.
Your employees know what they want, and if their current situation isn't meeting their desires, why would they stay? They would rather sacrifice career stability for fulfillment.
If you'd like to retain your talent and save them the headache (and heartache) of becoming an entrepreneur, you have to listen to what they care about:
- ⭐️ Autonomy over their work
- ⭐️ New opportunities for growth
- ⭐️ A chance to mix their career with their passions
- ⭐️ A reliable income worthy of their talent
- ⭐️ Flexibility over when and how they work
- ⭐️ Feeling heard and weighing in their opinions
As a leader, it's your job to show your team they don't have to be Mark Zuckerberg to be fulfilled.
Not everyone is cut out to be a successful entrepreneur. Most people won't be successful entrepreneurs. But by showing your employees you genuinely care, workplace leaders can give them a much better, much more fulfilling life and employee experience than that.
