The Importance of Entrepreneurship
Posted on April 22, 2024 by Martin Hahn, One of Thousands of Career Coaches on Noomii.
This article discusses the importance of entrepreneurship and the character traits of entrepreneurs.
When it comes to its impact on the U.S. economy, the phrase small business is a little misleading. For example, small businesses as a group account for most of the 600,000 or so new businesses created every year, as well as for most of the growth of companies (small firms grow much faster than big ones). Small firms also account for about three-quarters of the employment growth in the U.S. economy or in other words, small businesses create most of the new jobs in the United States.
More than half of the people working in the United States which is 68 million out of 118 million work for small firms. That’s why one recent U.S. president’s report noted, “a great strength of small businesses is their role in renewing the American economy.” Small businesses are “an integral part of the renewal process” through which businesses arise to replace those that fail. In doing so, they provide employment opportunities for tens of millions of people. Indeed, as we said, the vast majority of students graduating today will start or work for smaller firms.
Small businesses also account for much of the product and technological innovation in America today. For example, “new small organizations generate 24 times more innovations per research and development dollar spent than do Fortune 500 organizations, and they produce 24 times more innovations per research and development dollar spent. Fortune 500 organizations account for over 95 percent of new and ‘radical product development.
Should You Be an Entrepreneur?
Is entrepreneurship for you? You might answer the following questions which compliments of the U.S. Small Business Administration:
◗ Are you a self-starter? No one will be there prompting the entrepreneur to develop and follow through on projects.
◗ How well do you get along with different personalities? Business owners need to develop good working relationships with a variety of people, including customers, vendors, employees, bankers, and accountants. Will you be able to deal with a demanding client, an unreliable vendor, or a cranky employee?
◗ How good are you at making decisions? Small-business owners make decisions constantly and often quickly, under pressure, and independently.
◗ Do you have the physical and emotional stamina to run a business? Can you handle twelve-hour workdays, six or seven days a week?
◗ How well do you plan and organize? Research shows that good plans could have prevented many business failures. Furthermore, good organization and not just of employees but also of finances, inventory, schedules, production, and all the other details of running a business will certainly help prevent problems.
◗ Is your drive strong enough to maintain your motivation? Running a business can wear you down. You’ll need strong motivation to help you survive slow- downs, reversals, and burnout.
How will the business affect your family? The first few years of a business start- up can be hard on family life. The strain of an unsupportive spouse may be hard to balance against the demands of starting a business. There also may be financial difficulties until the business becomes profitable, which could take years.
