Think entrepreneurs are only in it for the money? Think again. New research has found that entrepreneurs have a number of reasons besides making money for starting their own business.
Entrepreneurs say the freedom to pursue new opportunities is the biggest reason for starting their own business. Additionally, entrepreneurs also say they start their own businesses to follow a personal passion while others say they do so to be their own boss. Making money was a lower priority than all those reasons among entrepreneurs in their decision to start a business.
Despite those good intentions, entrepreneurs also have a few traits that may be detrimental to their long-term prospects. Eighty-five percent of business owners believe they have a competitive advantage in their business while half of business owners believe their employees are more productive than the competition. That hubris can both help and hurt business owners, the researchers warn.
"We know that running a small business is tough and time is ticking," said Jonathan Raymond, CEO of business coaching company EMyth, which commissioned the research. "Owners need answers they can trust, with clear guidance on what to do next based on their unique situation. Only 50 percent of new businesses survive the first five years and only a third will last 10 years, according to the Small Business Administration. But these same small businesses are essential to our economy, as they create more than 60 percent of new jobs on average in the United States."
One of the best ways for businesses to ensure their success is for them to come up with and follow a value statement, the research suggests. The researchers found that 85 percent of companies have a written value statement and 70 percent of those companies utilize those values in the hiring process, ensuring those values will survive at their companies. Despite clearly defined goals, entrepreneurs report just 44 percent of employees followed those values effectively.
The research was based on the responses of more than 1,700 business owners worldwide in as a part of the 2013 State of the Business Owner report commissioned by EMyth.