Starting a personal business requires a great deal of attention and knowledge. While it may seem like the only knowledge you need is in the field of the business you’re about to operate in, this isn’t always the case. It is important to know what it entails to be an entrepreneur and how to go about it in 2022, especially since a lot has evolved over the years. With this in mind, this article will give you a rundown of some key things to know in order to succeed as an entrepreneur in today’s market.
Table of Contents
What is entrepreneurship?
Reasons for being an entrepreneur
Types of entrepreneurship
Start-up ideas for young entrepreneurs
How to become a successful entrepreneur
Some successful entrepreneurs in history
Summary
What is entrepreneurship?
Entrepreneurship is the art and science of starting a business venture and risk-taking with the aim of profit-making. In this age, entrepreneurship entails more than just owning a business for profit’s sake or to attain financial success, it is more about offering solutions to human problems and social needs to make the world a better place.
An entrepreneur is a person who undertakes the risks of starting a business. People such as Henry Ford, Elon Musk, Mark Zuckerberg, and others who have brought about innovative products and ideas are perfect examples of who an entrepreneur is.
Reasons for being an entrepreneur
Here are some notable reasons to become an entrepreneur.
To make life better for humanity
Contrary to public opinion, most people want to be an entrepreneur not only to become their own boss, but to be able to meet the needs of society, which is by far the better motivation for being an entrepreneur. Entrepreneurs create new products to solve the problems of others; they see a world of solutions and new possibilities while others see only problems and pains points.
To create jobs
Entrepreneurs not only provide solutions to the problems of others but they also create jobs while doing so. This will assist the government in raising the standard of living and improving the gross domestic product (GDP) of a country.
To bring about change
Some individuals who are not academic scholars or feel that they can’t fit into the corporate world may decide to try something different from the conventional path. Entrepreneurs seek to explore, dream and bring about innovations.
To be your boss
Some individuals who are sick and tired of being stuck in the rat race and having to work 9 to 5 only to have two weeks of vacation may decide to become an entrepreneur. But let’s face the truth; entrepreneurship involves a lot of hard work and determination, especially at the initial stage. However, being an entrepreneur offers you much more flexibility than the corporate world does.
To attain financial success
Entrepreneurs become wealthy when they solve the needs of others. Not only do you get to be your boss, but you also attain financial success and this is the ultimate reward for being an entrepreneur.
Types of entrepreneurship
Having a basic understanding of the types of entrepreneurship and which one correlates with your principles and strength can help you make logical decisions about the future. For those who possess the entrepreneurial spirit, this list will guide you in choosing the type of entrepreneurship that will give you the greatest chance of success.
1. Small business entrepreneur
Also known as a sole proprietorship, this involves a small business administration that is managed by one person. A freelancer starting out fits this business model.
The owner finances the business using personal resources and funds while assuming all the risks of a business and the financial rewards. According to research conducted in 2020, small businesses account for about 99.9% of companies in the business world with an estimated number of 33.7 million small businesses in the United States.
2. Scalable start-up entrepreneurship
Scalable start-up entrepreneurship entails building a business model that meets the needs of a market with the goal of rapid expansion and huge financial success. The stories of “rags to riches” are found in this category and include the likes of Amazon, Google, and Microsoft.
Due to the huge profit margin, scalable start-up entrepreneurs aim to attract angel investors and venture capitalist to help expand their business.
3. Large company entrepreneurship
This type of entrepreneurship results from an existing business model and aims to increase its customer base and keep the cash flow rolling in. Examples are the likes of Toyota and Microsoft which keep offering their customers new product variants around their product line.
A unique feature of this type of entrepreneurship is the acquisition of existing start-ups to allow the larger company to reach new markets and grow stronger.
4. Innovative entrepreneurship
Just as the name implies, an innovative entrepreneur is always seeking to bring new products and innovative ideas to the market.
Innovative entrepreneurs are always aware of the market trend so as to pioneer innovative products and creative ideas to challenge the status quo and push boundaries. The Wright brothers challenged the reality that “humans can’t fly” by inventing the airplane.
5. Social entrepreneurship.
Social entrepreneurship involves giving back to the society and enhancing economic and environmental change. Social entrepreneurs are in business with a strong vision of offering products that would solve the social needs of the world through non-profit or charitable organizations. However, social entrepreneurs make money fulfilling the core mission of the company and this differentiates them from scalable start-ups whose aim is rapid expansion.
Start-up ideas for young entrepreneurs
Having decided on the type of entrepreneur you want to become, you will find some lucrative start-up ideas below to get you started on your entrepreneurial journey.
Freelancing (copywriting)
This is probably one of the easiest and most lucrative business ventures in 2022 as the resources needed to get you started are nothing more than a mobile phone or laptop, an internet connection, and a strong determination to succeed. If writing is your passion, you can help solve the writing needs of other businesses and earn a living; this is where copywriting comes in.
Drop shipping
Drop shipping is an order fulfillment business model that allows an entrepreneur to outsource shipping and handling of products to a supplier (usually a wholesaler or manufacturer) whenever their online store makes a sale. This $15 billion industry is often dubbed one of the easiest online business models as it has a low-risk entry and you don’t need to own the products or inventory.
All you need to do is register with an e-commerce drop shipping site like Alibaba drop shipping, select a product to promote on your online store and when you make a sale, the supplier ships the product to your customer. The customer pays the retail price you set and you pay the supplier the wholesale price, so you make money by connecting buyers and sellers.
Affiliate marketing
Affiliate marketing is all about promoting other people’s ideas or products and earning a commission. Amazon affiliate, click bank and the likes are sites where you can promote a product to earn a commission. This is also an online business model and you can work from anywhere in the world.
Social Media Influencers
This $6 billion industry with over 4.2 billion social media influencers and growing, continues to be the newest form of wealth in the 21st century. Social media influencers have the power to influence the purchasing decision of a person due to their online presence and skills. This leverage allows influencers to make money easily through sponsored posts, affiliate marketing, collaboration with brands, and webinars. Bloggers, industry leaders and celebrities are examples of social media influencers.
To become a successful social media entrepreneur, here are some tips to guide you.
1.Select a niche
2. Choose a social media platform
3. Define your audience
4. Engage your audience with value posts
5. Consistently and strategically generate more traffic to grow your fan base
6. Network with other influencers
7. Let brands know that you’re open to collaboration.
Consulting-based businesses
As a specialist, you can offer your expertise and experience as an adviser to an individual or company. Businesses understand the essence of consulting and as of 2016, the US consulting business attained a market cap of $55 billion.
How to be a successful entrepreneur
It is a well-known fact that 9 out of 10 businesses fail in the first 5 years. This implies that it takes more than just money to become a successful entrepreneur, you need to have an entrepreneurial mindset to sail through the murky waters of the business world.
Although each business venture requires a unique set of knowledge and skills, there are some characteristics that successful entrepreneurs have in common.
1. Passion
2. Creativity
3. Delayed gratification
4. Calculative risk-taking
5. Self-motivation
6. Hunger to learn
Some successful entrepreneurs in history
Henry Ford
Henry Ford is more of a social entrepreneur who will forever be remembered for mass-producing cars at cheap prices at a time when a car was a luxury for the rich.
He became famous and successful by fulfilling his mission: to make better, faster, and cheaper cars.
Bill Gates
Bill gates became the youngest ever billionaire at the age of 31 by licensing Microsoft to IBM and taking the company public in 1986.
As a philanthropist, he is famous for his charitable organization, the Gates Foundation, situated in Seattle.
Elon Musk
CEO of Tesla and PayPal, amongst other companies, Elon musk is dubbed the richest man on earth with an estimated net worth of $220 billion as of June 2022.
He is known for taking risks and is famous for his notable quote “When something is important enough, you’ll do it even if the odds of success are not in your favor”.
Oprah Winfrey
Oprah Winfrey is an African-American billionaire philanthropist and host of the popular TV show “The Oprah Show”. She was a victim of rape at the age of 9 but she did not let her predicament stop her, and went on to become successful as an author, producer, and actress.
Jeff Bezos
Jeff Bezos is an e-commerce mogul and founder of the e-commerce giant Amazon, a leading e-commerce platform in the US.
Amazon was initially a book store but is now a general store selling several kinds of consumer products throughout the world.
Summary
It is without a doubt that there is a high risk associated with being an entrepreneur and starting a business, but the rewards for being successful far outweigh the risks involved. This, along with making a positive contribution to society, justifies the reasons for being an entrepreneur. So if this is something you have always dreamt about, get out there, face your fears, and live the entrepreneurial life you’ve always wanted to!
