Why Entrepreneurship Is Becoming More Important
Those who have been in the job market for the last couple of decades have learned one thing – no job is secure. It only takes a slight wobble in the global economy to cause widespread layoffs. Those people who were caught up in the global financial crisis quickly were faced with a choice – either explore alternatives to the traditional job market or lose any hope of earning an income.
This has led to the rise of entrepreneurship – the ability of people to leverage innate or learned skills to become self-employed. Those who supply scarce skills or are highly specialized quickly find that there is a market for their particular areas of expertise. However, it is not only skills scarcity that allows many people to explore alternative avenues to the traditional employment opportunities. It is also the ability to identify a niche or market need.
The most successful entrepreneurs are those who service needs that may not even have been apparent to traditional companies. Think of people active in information technology or communications. Only a generation ago who would have thought that there would be a market for communication applications or social media channels, yet today these business models are among the most profitable in the world.
The ability to engage in entrepreneurship is not limited to age, skill sets or even access to capital – it is rather a function of curiosity, mindset and plain old-fashioned hard work and determination.
It is said that almost every single entrepreneur has experienced failure at some point and more often than not multiple failures on the road to success. The determination to succeed is therefore probably the most important determinant of eventual success.
However, if you ask an entrepreneur what the most important part of any successful business is they will probably indicate that planning for success is just as important as any other factor.
Read the life story of a successful entrepreneur and it becomes very clear that those who make a success of a business concept are meticulous planners. Before embarking on a strategy, they have spent the time studying the market and ensuring that they have the plans in place to ensure capital availability and how to ride out the potential shocks and surprises that will almost inevitably be part and parcel of that ride towards eventual success.
For this reason, every successful entrepreneur will start off with a robust business plan. This business plan will scope out the market parameters, capital requirements, distribution challenges and a variety of other factors. The business plan has been called the blueprint for success.
Without a carefully structured plan of activities, it will be almost impossible to raise funds from traditional sources such as financial institutions. Of course, there are other alternative avenues to funding a new business such as family and friends, but even in those instances, the lack of a structured business plan can doom an entrepreneurial exercise just as surely as a bad idea.