While businesses ranging from healthcare to technology and manufacturing make up the top five branches of the US economy, the entrepreneurs behind some of the country’s most well-known enterprises are the lifeblood of the country’s wealth. Whether you want to open a local grocery store, start a digital startup, or do both (hello, Blue Apron), you’ll be joining a global community of entrepreneurs behind any business or private enterprise you can think of. Entrepreneurial examples can be found all over the place. McDonald’s was created by a businessman. A businessman founded Facebook. A businessman founded Coca-Cola. Any well-known corporation had an entrepreneur at its helm. However, for every successful entrepreneur, there are many more that fail. According to a 2020 Investopedia article, 20% of businesses will fail during the first two years, and 45% will fail within the first five years. According to a Fortune Magazine story from 2014, nine out of ten startups fail at some point. Those figures may seem scary, but that doesn’t rule out entrepreneurship as a career option. Anyone can start a business and make it successful if they have genuine enthusiasm, hard work, brilliant ideas, and a desire to learn. This essay will explain what an entrepreneur is, what it is not, and how to become one. You should also know what kind of education, from previous work experience to college degrees, will help you build your own business, as well as the pitfalls to avoid.
What Is the Definition of an Entrepreneur?
It’s reasonable to envisage business owners of all varieties while thinking of entrepreneurs. Entrepreneurial occupations include restaurateurs, auto shop proprietors, CEOs of digital firms, and self-employed photographers.
So, what is the Distinguishing Feature?
The word entrepreneur is derived from the French verb à entreprendre, which means “to take on.” Consider a person who takes risks and takes the initiative to pursue financial gain. Anyone who takes a risk in the hopes of making a profit is considered an entrepreneur. While profit isn’t the primary motive for entrepreneurs, risk-taking, usually in financial investments, is the common thread that runs through all of them. Entrepreneurs are likewise attempting to create a long-lasting product. One of the defining characteristics of an entrepreneur is that they take the required steps to establish a company that will continue to make money even when they are not working. Even if she conducts her daily duties outside of her café, a café owner will make money when the café is open for business.
What Is the Role of an Entrepreneur?
An entrepreneur is a person who establishes their own company. They usually develop a business idea, get the necessary funds, hire a team, and manage the company. Entrepreneurs work in virtually every field, creating new products or providing services. Entrepreneurs may fill a variety of responsibilities while running their new company. They may, for example, perform staff interviews and hiring, product marketing, bookkeeping, and product development. The purpose of taking on numerous responsibilities is to keep costs down at the start of a business venture when the entrepreneur may have a limited budget. As a result, entrepreneurs frequently learn a wide range of topics to do more duties independently.
Advantages of Obtaining an Entrepreneur’s Degree
While there are no specific educational qualifications for becoming an entrepreneur, having a degree may assist you in achieving your objectives. Earning a degree allows entrepreneurs to broaden their knowledge and discover crucial concepts that they may apply on the job. Furthermore, obtaining a degree can expose entrepreneurs to fresh ideas, which they can subsequently apply while developing business plans. Entrepreneurs can boost their resumes legitimacy by acquiring a degree. Entrepreneurs frequently collaborate with other business owners and professionals, who may assess the entrepreneur’s knowledge and experience level before determining whether or not to engage with them. Finally, by enrolling in a degree program, entrepreneurs can meet new individuals and broaden their professional network, which they can use to launch their business.
Eight Degrees Are Advantageous to Entrepreneurs
If you wish to gain abilities that will help you as an entrepreneur, consider the following degrees:
Many of the principles needed for a successful business venture are introduced to entrepreneurs through a business degree. Finance, marketing, management, and even starting your firm are common topics covered in business degrees. You will learn how to write a business plan, set goals for a business, get funding for a business, and expand a business as part of your studies. A business degree might also be beneficial if you are unclear about the area you want to start a firm in because it covers a wide range of topics.
Students in a marketing degree program learn to research the market for opportunities. This is a crucial notion for entrepreneurs, who frequently build their companies around items or services that no one else has addressed. A marketing degree will also teach you how to identify and evaluate your target market so that you can sell your products or services most effectively. Entrepreneurs must attract clients fast and efficiently; thus, a marketing background is beneficial in this profession. You can learn how to establish an ideal consumer profile, develop a brand image, execute an advertising campaign, and use social media effectively with a marketing degree program.
Managing your finances is an essential aspect of launching your own business. This involves making sure you have enough money to run your business after paying your staff, rent, and suppliers. A finance degree will teach you how to manage your cash flow, budget effectively, and prepare financial statements. You’ll also learn how to assess a company’s financial position to make strategic decisions. Entrepreneurs can learn how to analyze risks and prevent financial problems by studying finance.
Engineering is a diverse degree that may assist entrepreneurs in various ways. An engineering degree teaches you how to solve problems first and then create those answers. Many entrepreneurs begin by creating their products, and an engineering degree may teach you how to do so in the most efficient way possible. Furthermore, some engineering courses concentrate on taking a product from concept to completion, ideal for startups. Finally, when studying engineering, you develop critical thinking and problem-solving skills, both of which are necessary for entrepreneurship.
A solid understanding of how the economy works, including supply and demand fundamentals, is advantageous to almost every business owner. A degree in economics teaches you to determine what buyers value and price a product correctly. You’ll also learn about the broader economic landscape, including tariffs and taxes, and how these might affect a firm. An economics degree benefits entrepreneurs by doing better analyses and making more efficient long-term business decisions.
A communications degree prepares an entrepreneur for the multiple relationships and connections they will form as a business owner. This degree teaches you how to interact with others effectively and convincingly, both vocally and in writing. You’ll learn how to give effective presentations, write press releases, and network. Because entrepreneurs must communicate with their customers, suppliers, employees, and other stakeholders regularly, a communications degree will equip you to do so successfully and professionally.
Entrepreneurs with a psychology degree have a greater understanding of people, and this means you might have a better understanding of consumer needs, people management, and team motivation. Students learn how to examine a person’s behavior and address interpersonal difficulties in psychology. These skills can then be applied to creating sales, marketing a product, hiring new personnel, engaging with clients, and managing a growing workforce for entrepreneurs.
Information and Communication Technologies
In some manner, most modern enterprises rely on technology. A degree in information technology, which is the study of how computers manage data, is advantageous to entrepreneurs in several ways. Entrepreneurs with this degree can identify the best technologies to assist their new firm in developing by expanding their knowledge of information technology. They also learn about the different types of software and technology utilized in the corporate sector and how to use them effectively. Furthermore, many entrepreneurs prefer to start a business in information technology. New technology, such as software programs or hardware components, is always in demand. Entrepreneurs with a degree in information technology can enter the field with their products or services.
How to Start Your Own Business?
What are the steps to starting a business? There are numerous options available to you. A delivery company owner, for example, would not follow the same path as an interior decorator. However, there are some steps that all entrepreneurs should follow.
In general, the following are the steps to becoming an entrepreneur:
Step 1: Research Your Market
Step 2: Educate Yourself
Step 3: Find Your Industry or Niche
Step 4: Take it Slowly and Build Your Business
Step 1: Figure out what industry or niche you want to work in. Finding your specialized specialty or profitable expertise is the most critical initial step. Many people aspire to start their own business but are unsure about which industry to pursue.
Most of the time, your niche will be something you’ve been doing for a long time. If you’ve worked as a carpenter for a local construction company, you might be interested in home remodeling and restoration. If you’ve worked in a restaurant for a long time, you’re probably familiar with how to run a food service operation. Starting your search for your calling using your existing experience is a terrific way to start. It will also help if you are passionate about your field. It would help if you enjoyed what you do to achieve long-term success. Money may not be a strong enough motive to keep you working sixty to seventy hours a week to keep a business afloat in the long run. You’ll need more than money to keep you motivated; you’ll need a reason to do what you’re doing.
Step 2: Do Market Research
Entrepreneurs should conduct market research and analyze the area for demand and necessity.
Perhaps you’d like to start a Korean food truck in your town. Are there any other restaurants that are succeeding? Is your neighborhood home to any other successful food trucks? Is a high-end restaurant more appealing to local customers, or do they prefer a more moderate option? Do they eat Korean food at all?
Step 3: Self-Education
There is a widespread belief that successful, self-made entrepreneurs seldom attend college in popular culture. The numbers, on the other hand, do not support this. According to a team of Duke, Akron, and Southern California experts, over 95 percent of entrepreneurs in high-growth industries have at least a bachelor’s degree.
Entrepreneurial Training & Education
When it comes to preparing for a career as an entrepreneur, three types of schooling are considered. While these aren’t necessary for your job, they won’t damage your prospects of long-term success.
A. Your Industry’s Education
Work-related experience or research directly related to your field of interest are the first types of education to consider. If you want to operate an auto repair shop, you’ll need some training and credentials in the field. If you want to work as a self-employed electrician, you’ll require the most up-to-date wiring and circuitry education and training. Food service training will be beneficial if you wish to own a restaurant.
B. A Bachelor’s Degree in Entrepreneurship
Many aspiring entrepreneurs contemplate earning an entrepreneurial certificate or degree once they’ve completed their industry schooling. Certificates are a cost-effective approach to master the fundamental skills needed to jumpstart a new career. In contrast, a bachelor’s degree will provide a general studies foundation and entrepreneurial-specific courses. Shorter entrepreneurship courses can be finished quickly and are helpful for effectively launching a new firm.
C. Business and Finance-Related Education
From owners of roadside cafés to multinational businesses, every entrepreneur must know management, financing, taxes, and other business-related matters. You don’t necessarily need a master’s degree in economics, but a business education will benefit you. An entrepreneurship education might take the form of a specific entrepreneurship degree or a more broad business education that will educate you to face the day-to-day problems of running a firm. Certificates are a cost-effective approach to master the fundamental skills needed to jumpstart a new career. In contrast, a bachelor’s degree will provide a general studies foundation and entrepreneurial-specific courses. Shorter entrepreneurship courses can be finished quickly and are helpful for effectively launching a new firm.
C. Business and Finance-Related Education
From owners of roadside cafés to multinational businesses, every entrepreneur must know management, financing, taxes, and other business-related matters. You don’t necessarily need a master’s degree in economics, but a business education will benefit you. An entrepreneurship education might take the form of a specific entrepreneurship degree or a more broad business education that will educate you to face the day-to-day problems of running a firm.
Step 4: Take it Slowly and Build Your Business
Many would-be entrepreneurs believe that quick growth is a sign of a successful company. On the other hand, most firms take years, if not decades, to develop. Entrepreneurs will build slowly wherever possible, starting with the first sale and crawling onward. Slowly growing your business allows you to learn and modify before diving headfirst into it. Dealing with new challenges provides invaluable on-the-job entrepreneurship training that no formal degree can deliver. Many entrepreneurs work full-time jobs while working on their businesses in their spare time.