The culture of entrepreneurship has a long history in the world, where there have been opportunities, someone has developed a business that takes advantage of the open doors of the market.
In early times it may have been the exchange of goods between individuals or tribal societies, but it is true that over time the production of goods, services and trade have evolved dramatically.
Today’s business universe is very complex, and fascinating.
On the other hand, the concept of entrepreneurship is often identified today with the development of new technology and the Internet.
But this is not entirely the case. The possibilities for starting a new business are endless, and are not limited to a specific type of activity.
An entrepreneur is someone who starts a new business.
According to The Accent there are 5 main ways of entrepreneurship:
- Social entrepreneurship.
- Innovation entrepreneurship.
- Entrepreneurship of large businesses.
- Small business entrepreneurship.
- Entrepreneurship of scalable companies.
The fields that open up are very broad, and are not necessarily oriented, as seen in the first point (social entrepreneurship), to generate profits.
Entrepreneurship is starting a business and taking a financial risk in order to make a profit. And there is categorically no difference between starting large businesses and being a solo entrepreneur.
It is taking the risk of creating something new in the hope that the market will respond positively.
Investopedia reports that approximately 20% of new businesses fail in the first year, 45% in the first five years, and 65% in the first ten years. Only 25% of new businesses make it to fifteen years or more.
And the same document points out that there are six reasons why businesses fail:
Failure to research the market. Not understanding whether the market will be receptive to the offer.
- Business plan issues. Failure to develop a business plan or business model, or failing that, to develop it in a defective manner, which would mean not having a reliable basis for making decisions.
- Low financing. It is impossible to foresee the situations that a new business will face. If access to financing is limited, it is possible that at vital moments it will not be possible to continue operating due to lack of resources.
- Poor location, Internet presence or marketing. Making bad decisions or not doing the obvious can have negative consequences.
- Being rigid. Not being flexible after the business has been established. The market has always been changeable, more so today. And making adjustments or changes, depending on market appetites, is sensible.
- To expand very soon. When successful, it is highly recommended to consider expansion as a new venture, understanding the areas and markets you want to reach. If a business expands rapidly without a consequent market response, it can drain financial resources and sink the company.
Decide and undertake
Regardless of the reason for starting a business, whether it is to contribute socially, to innovate and offer a new type of product or service, or simply to make a profit.
It is essential to recognize that the entrepreneur is a visionary and risk-taker who enjoys his freedom and the possibility of conquering markets.
