It seems like the current generation of youth is obsessed with “hustle” culture and entrepreneurship in general. This is understandable as more and more young people are dissatisfied with the traditional route of graduating from university to find a job.
The statistics show that the relative cost of higher education over the last few years has increased along with the rate of unemployment worldwide. This may contribute to the “gold rush-like” mentality people have to entrepreneurship and business ownership.
There are many benefits and advantages to owning a business but there are also some disadvantages that come with the deal.
At CBC, we aim to empower young people to reach their full potential in business and life. However, we have a duty, to be honest. That being said, we will be exploring the pros and cons of entrepreneurship.
If starting a business was as easy as social media gurus would have you believe, everyone would be doing it, right? Well, let’s see some pros.
PROS OF ENTREPRENEURSHIP
1. You get to be your own boss.
Becoming an entrepreneur means taking control of your own destiny.
You don’t have to rely on anyone else for a paycheck. Undeniably the number one draw to becoming an entrepreneur is the freedom that comes with it. You’re not relying on your boss’ decisions for how the company performs. Or, that the boss will choose to keep employing you.
How much you make is up to you. How much you have for retiring is up to you. How much time you spend with the people you love versus in the office is up to you. Where, when, and how you work is completely up to you. Best of all, you don’t have to listen to the nagging of superiors and can be spared from partaking in office politics
2. You get to work on something you’re passionate about
Being an entrepreneur means you’re able to spend your time doing something you actually care about. It may not always be easy, and it certainly won’t always be pleasant, but it will be meaningful. Your business will drive you to jump out of money early and turn in late. Accomplishments will feel incredible because of the work you put in. Being an entrepreneur fills you with purpose and passion.
3. You get to be a Leader
At one point or the other in your journey, you will need others to help you achieve your vision. Be it developing the newest product in tech or creating a venture that aims to change the world, and you will find it hard to progress without people. To accomplish your goals, you must become a leader. To lead is both a privilege and a responsibility. Heavy is the head that bears the crown, after all.
4. You get to do what’s right
If you are an employee, you may be forced into actions that are in conflict with your morals or better judgment. As long as you’re reliant on a company for a paycheck, you must comply with its methods and modes of operation. As an entrepreneur, you are free from those shackles. You can dictate your business however you see fit to right the wrongs in your community.
5. You get to make more money
This is the second biggest reason why so many are willing to pursue entrepreneurship. While it isn’t impossible to find that offer fair and reasonable compensation for work done, there is no denying where the bulk of a company’s profits go. Becoming an entrepreneur means you get to keep as much as you’d like to. It also means you have an opportunity to improve your standard of living as you progress.
So, what then limits the number of entrepreneurs in society today.
CONS OF ENTREPRENEURSHIP
According to the U.S. Bureau of Labor Statistics (BLS), approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.
1. Risk
Being the sole captain of the ship means you are chiefly responsible if anything goes wrong. As the business owner, you take on all of the risks associated with the business. You risk your time, money, and effort when you start a business.
2. Workload
Getting a business off the ground takes effort. And this is not a trivial issue. It will take a significant amount of work to start and then maintain a business. At the on-set, most of this work will be done by you alone. The time spent to get a business rolling is not fixed. This means you may spend a lot longer than you anticipate doing most of the heavy lifting in your business.
3. Responsibility
As mentioned earlier, being in charge is both a privilege and a responsibility. You may not have to answer to anyone, but it also means you will have to depend on only yourself for the success of your business. The burden of the business and employee’s wellbeing will rest on your shoulders, and it can be a lot to bear. This also means you will have to make tough decisions about hiring or firing employees to ensure your business remains afloat.
4. Pressure
In general, while many people think that they can be an entrepreneur, most of them don’t. In fact, quite a few people have the ability to deal with all the problems that come along with entrepreneurship, and if you don’t have a certain mindset, you will probably fail. Its frankly not easy to manage the stress, loneliness, and pressure of the job description.
What nobody talks about is that most startups fail within the first two years, and this is not surprising. Only very few people actually have the DNA and the patience to build a successful business.
5. Limitations
While being an entrepreneur grants you certain freedoms, it also places constraints on you as well. Entrepreneurs often work longer hours, have limited social circles, and have less personal time. Entrepreneurs, especially at the initial stages, usually don’t have time for much other than their business. The time-consuming nature can put strains on personal relationships. Be wary.
Starting a business isn’t some magical pill that will solve all your problems. It’s a gauntlet. For those who can withstand the trials, it can be a rewarding and life-changing experience. All hope isn’t lost, though. If you have your heart set on being an entrepreneur, our advice is to equip yourself thoroughly before you begin your voyage. Educate yourself, read books, talk to professionals and veterans. Find mentors who can offer guidance as well. We recommend you keep an eye out for the next iteration of C.M.P (Catalyst Mentorship Program). Sign up so you can get the tools you need to surmount the challenges ahead.
For more information or consultation, Contact Catalyst Business Consult
On +234 816 272 6997
@olawalecatalyst on Instagram and
@catalystolawale on Twitter
