Updated: Sep 23, 2020
The term “entrepreneur” is one we all hear on a regular basis, but what does it actually mean? Small businesses make-up a large portion of the United States economy, making the country the highest-ranking innovation-driven economy. With so many small businesses, Americans have proven that they find value in the autonomy of building their own empire, but what does it take to become an entrepreneur?
An Entrepreneur is “a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.” There are many forms of entrepreneurship such as: consulting, contracting, business development, etc. A person can be self-employed and own an incorporated or unincorporated business depending on how they want to acquire funding and protect assets.
With 21% of Americans self-employed, the U.S has a thriving entrepreneurial culture. There are 30.7 million small businesses in the United States, making up 99.9% of all U.S. companies. These small businesses successfully create 1.5 million jobs per year, meaning that 64% of new jobs come from these small businesses ever year.
There are several benefits to becoming an entrepreneur. For starters, one can pursue a passion and make their own vision come fruition. Business owners also have the autonomy to create their own schedule, work with persons of their own choosing, and the freedom to choose a workspace that suits a person’s work style. Higher earning potential while creating new job opportunities supporting the local economy are further benefits of Entrepreneurship.
Becoming a business owner is not without risk. 20% of small businesses fail within the first year, and 50% fail in the first five years. Funding can be hard to come by, especially for women of minority individuals. Without a clear plan, stable financials, and a strong work ethic a business may fail.
Creating and running a business can be rewarding endeavor, not only for the individual pursuing their dreams but the economy as well. However, the journey is not for the faint of heart, and many business owners find themselves in unfortunate circumstances when their business fails which is why many entrepreneurs must try several times to find a model that pays off.