Why you want to become an entrepreneur in the future?

Entrepreneurship is an important part of Santa Clara University's Strategic Plan. Campus programs are creating an entrepreneurial mindset...

Entrepreneurship is an important part of Santa Clara University's Strategic Plan. Campus programs are creating an entrepreneurial mindset in our students, faculty, alumni, and in the broader community. The University wants to support aspiring entrepreneurs who will start businesses, social enterprises, and other organizations that serve humanity.

It is important that we understand why people become entrepreneurs so that we can design supportive educational programs and advise others, particularly policy-makers, on how to help entrepreneurs. In a recent research paper, researchers in the U.K. reviewed more than 50 academic papers on entrepreneurship and identified seven reasons that people become entrepreneurs:   

Reason 1: Achievement, Challenge, & Learning

This reason is quite familiar to those of us in Silicon Valley. The challenge of solving a problem using technology has motivated thousands of entrepreneurs here and abroad, and created some of the largest and most successful companies in history. To me, this motivation applies to anyone with a strong need for self-expression and a desire to create. I know chefs, graphic artists, musicians, clothing designers, vintners, and builders who have become entrepreneurs so they have a way to express their creativity, apply their skills, and solve challenging problems.

Reason 2: Independence & Autonomy

Independence and autonomy are profound and compelling human desires. Entrepreneurs set their own goals, pick their own partners, and face the consequences of their decisions. When I asked Phil Holland, the founder of the My Own Business Institute, about the benefits of his entrepreneurial journey, he responded: "The number one benefit (no close second): Living in a democratic, free-enterprise society, which gave me the freedom to follow my dream in my own business."

Reason 3: Income Security and Financial Success

I think this is really two motivations. Some entrepreneurs are motivated by the desire to create the next "unicorn" – a privately-held company with a valuation of over $1 billion (see examples). Far more common is the entrepreneur who is seeking financial security. They might be excluded from traditional employment because of limited education, poor language skills, illegal discrimination, or previous incarceration. For them, one of the best options for achieving financial security is starting a business and creating their own opportunity.  

Reason 4: Recognition and Status

Depending on the community and culture, entrepreneurs can be either celebrated or vilified. Entrepreneurs who create enormous wealth for themselves and their communities are not automatically recognized as citizens we would like our children to emulate. Much depends on how they made their money and what they do with it.  

Reason 5: Family

In many parts of the world, the family business is the only way to maintain financial and social stability. The well-being of the family is a powerful motivator for young entrepreneurs looking for a vocation. 

Reason 6: Dissatisfaction with Current Work Arrangements

Remember the song “Take this Job and Shove It” by (ironically) Johnny Paycheck? A bad boss, poor pay, job discrimination, forced retirement, and no opportunity for advancement are strong motivators for potential entrepreneurs. So is being fired. Research has shown that layoffs associated with the Great Recession resulted in a rapid and significant increase in business start-ups and entrepreneurial activity.

Reason 7: Community and Social Motivation

Many entrepreneurs are motivated by a desire to give back to the community or solve an ongoing social problem. Social entrepreneurs and their efforts to solve the problems of disadvantaged communities are the focus of SCU's Miller Center. The mission of organizations like Inner City Advisors is to create jobs in communities that need them the most. 

Of course, the reasons described above are a simplification of the motivations of actual entrepreneurs. Nevertheless, this information can help SCU develop programs to support aspiring entrepreneurs as they begin their exciting journey.

As long as business researchers have been asking, entrepreneurs have been giving the same answer: “Why do you want to start a business?” Answer: “Because I want to be my own boss.” This answer tells you a lot about why some people but not others choose to become entrepreneurs. Where many people equate being the boss with risk, long hours, copious responsibility and lack of financial security, entrepreneurs see opportunity.

A Cox Blue survey recently found that nearly two-thirds of 605 small-business owners said they were motivated to start a business to be their own boss. What does being the boss mean to this tenacious group of optimists? Business News Daily breaks it down to three incentives: freedom, satisfaction and flexibility – and the many sub-reasons that explain each of these facets of opportunity.

Freedom Is Why Individuals Become Entrepreneurs

“Freedom,” “satisfaction” and “flexibility” are value words that people define somewhat differently and through their own filters. Entrepreneurs tend to have broad definitions of freedom. Entrepreneur says their definitions include such ideals as:

• Freedom to create their own future on their terms
• Freedom to build a business and develop processes their own way, probably by gleaning lessons (good and bad) from former employers
• Freedom to foster a corporate culture that reflects their values
• Freedom to control the trajectory of a business, whether that means developing a deep local and regional focus or expanding to include a national or international presence
• Freedom to assemble the type of team that will play a huge role in the business's success – presumably like-minded people with similar drive and passion
• Freedom to develop business relationships that pivot on qualities of their choosing

Self-Satisfaction Is Another Benefit

After spending years on someone else's payroll, it may take nothing more than the sight of a new laptop open on the kitchen table for a newly minted entrepreneur to be flooded with a sense of satisfaction. In fact, many entrepreneurs start businesses out of their homes on their kitchen or dining room tables.

Of the three value words, “satisfaction” is the one with the most expansive list of possible manifestations. To people prone to see the glass as half-full, satisfaction can be found in:

• The opportunity to do what they love and have a passion for while making a living at the same time
• The ensuing rush in knowing that they're doing what many people only dream about and few have the courage, talent and confidence to bring about
• The ability to build a living legacy not just for themselves but, perhaps, for their family
• The fact that they've achieved an enviable balance in life as dreamers/idealists but also realists whose work ethic and determination keep them grounded
• The knowledge that they'll likely learn something new every day, and every day will be different as they confront new challenges
• The understanding that they're contributing to society in myriad ways
• The pride in being able to introduce themselves as the owner/founder/CEO (or all three) of “My Company, LLC”

Flexibility Is Highly Prized

Outsiders often assume that flexibility is the primary benefit of being an entrepreneur. To people who fantasize about taking long lunches or running an errand during the day, no questions asked, it's a tough point to dispute.

However, entrepreneurs soon learn that there's a flip side to freedom of movement – namely, work that extends into nights and weekends and interrupts birthdays and holidays. Entrepreneurship has no schedule. When a business issue beckons, the boss must respond.

It takes a disciplined entrepreneur to set the terms that allow him to reap the flexibility to:

• Make his own schedule
• Work wherever he wants (including the kitchen table)
• Adjust his schedule to attend family or school events
• Take a last-minute day (or week) off without clearing it with anyone in advance

If you're contemplating starting your own business, you may have already mulled some of these reasons. If they resonate with you, you may fit the entrepreneur profile that will lead you to kindred spirits in your business community – and never a dull conversation on your entrepreneurial watch.

Why you want to become a entrepreneur someday?

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Why do you want to choose entrepreneurship as your career choice?

What are 3 reasons why people become entrepreneurs?