Many graduates choose to become entrepreneurs rather than employees. Starting your own business gives you control over its management and profits; self-employment boosts a person’s confidence in his/her business skills. Undoubtedly, the British used the word “adventurer” in the same sense the French used “entrepreneur.” Since the 17th century, entrepreneurship has contributed to the growth of capitalism. From automobiles to smartphones, history presents a list of self-employed geniuses. Let’s see what makes a successful and over-achieving entrepreneur in the 21st century.
EDUCATION INFLUENCES ENTREPRENEURSHIP
Investing in your startup without education can be a disastrous mistake. Many entrepreneurs fail in their projects because they lack the skills critical for running a successful business. Knowledge guides small business owners and helps them avoid some common mistakes made by entrepreneurs. Distant learning has assisted many youngsters in discovering their passion for entrepreneurship. Let’s see precisely how proper education influences and encourages self-employment among students.
WHY DO SOME ENTREPRENEURS FAIL?
There are more than 500 million entrepreneurs around the world. Statistics have estimated that millions of Americans will become self-employed by 2020. As a flourished cultivating ground for business owners, America witnessed nearly half a million startups launched every year. Most small businesses survive their first year, but only half live for more than five years. Researchers have found various reasons for self-employment failure, such as:
- 80% of startups collapse due to a lack of funds. More than 60% of business owners have to finance their projects personally.
- More than 40% of small businesses fail because they’re investing in something unpopular in the market.
- One-fourth of entrepreneurship projects fail because they don’t have the right team.
- Lack of a properly-constructed business model can be a factor in business failure too.
- Lack of business education can also lead to an unsuccessful self-employment attempt.
WHY A COLLEGE DEGREE MATTERS FOR ENTREPRENEURS?
Does a college degree restrain or encourage entrepreneurship? A large number of entrepreneurs have at least a bachelor’s degree. Business education is a massive motivation behind students who wish to be self-employed. More than 30% of students start a business while they’re still studying. Therefore, prospective entrepreneurs should go for online business degrees if they want their startups to thrive. Experienced entrepreneurs have found many reasons how having a college degree helped their self-employment career.
- A common myth suggests that the secret of success in entrepreneurship is to start a company. This misconception has misled many students who believe education is irrelevant to entrepreneurship. Many small business owners have spent years working in established companies. Corporate employment prepared them for self-employment. It would help if you had a college degree to get a nine-to-five job before you can realize your entrepreneurship goals.
- Most small business owners have to fund their startups personally. But some students, being financially underprivileged, ask around for donors and sponsors. Getting serious funding is difficult when your educational background isn’t excellent enough. A bachelor’s degree helps you appear as a credible investment opportunity before the eyes of potential investors.
- College students have become more invested in the concept of entrepreneurship. Therefore, educational institutes provide you an environment where you can share your ideas with business-minded colleagues. Think of college campuses as a nursery for startups where you develop your self-employment interests.
- A college environment contains people of different backgrounds and various skillsets. Diversity brings a more efficient team with better problem-solving capabilities. You can find many business-orientated individuals on campus whom you can collaborate with for projects. Interestingly, online classes have made it easier to communicate with these bright minds. You can contact people with a shared commercial interest and work together with them.
- We observe that most businesses don’t survive after a decade. College education programs teach future entrepreneurs the leadership skills necessary for successful startups. Business management courses help you communicate effectively with your clients and workers, while the degree enables you to identify the most profitable marketing opportunities.
- There has been a lot of study on how university incubators stimulate academic entrepreneurship among students. College accelerator programs help students connect with multiple creative and investment opportunities. Thus, students can get access to the market through these educational ecosystems for entrepreneurship.
SUCCESS IN ENTREPRENEURIAL SETUPS
Entrepreneurship offers students many opportunities to become self-reliant and self-sufficient. A 2018 survey by LinkedIn showed that most CEOs enlisted on their website were degree-holders. You’ll be surprised to learn that one-third of them had a degree in business administration. That’s why potential entrepreneurs get recommendations to pursue business education.
TIPS FOR ENTREPRENEURS
Becoming a successful entrepreneur isn’t complicated if your passion exceeds your patience. If you have an idea you’re obsessed with, follow these three steps to become an accomplished businessman:
- Research your market and find out if your plan is in demand or not. Remember, many startups fail because the masses don’t require the service they provide.
- Get some education to learn what you’re doing. If you want to become a tech entrepreneur, educate yourself about IT. Academic learning contributes to commercial success.
- Construct the business patiently and carefully. Rapid growth isn’t necessarily a mark of triumph in entrepreneurship. Go for permanent survival instead of immediate victory.
MISTAKES YOU SHOULD AVOID
Many small businesses fail because they make common blunders. If you want to see your startup flourish, try avoiding these common mistakes. The following instructions will show you how not to ruin your career in entrepreneurship.
- Keep your personal and commercial funds separated.
- Never overlook personal expenditures when you start a company.
- Don’t burden your startup with too much credit as it can potentially bankrupt the company.
- You should have some experience in the industry you’re going to delve into with such competition.
- Entrepreneurship isn’t a solo flight. You need to have a backup plan if your startup collapses. A secure support system promises your financial stability in case of failure.
Some argue that the best way to become an entrepreneur is to drop out of college. The life-stories of Jobs and Zuckerberg charm juvenile minds who believe a college degree is useless. You can become a flourishing businessman without a degree, but that’s just one route to success. This route doesn’t work for everybody. Not everybody is lucky enough to become proficient in his/her startup without formal education. Therefore, search your market and get formal training before you follow your entrepreneurship dreams. With a well-constructed business plan and smart investment, you can lead a promising self-employment career.