Entrepreneurship is an important part of the American Dream. The concept of the American Dream brought millions of people to the United States looking for a better life for themselves and their families. It is the belief that anyone, no matter what their background, who is willing to do the hard work necessary, can achieve success.
A poll by YouGov found that 54% of adult Americans believe the American Dream is attainable. One of the main reasons why people want to start a business in America is a strong belief in the American Dream. This feeling is about having an internal passion that drives you to become a success.
Entrepreneurs have this passion in abundance. One common characteristic of entrepreneurs is that they love what they do. Nobody forces them to work 20 hours a day when they start. They choose to work so much on an idea they believe in wholeheartedly. They are willing to delay personal gratification and to achieve the praise and rewards that come later.
Small Businesses in America are the Largest Business Sector
Did you know that small businesses make up 99.9% of all businesses in the United States? There are 33.2 million of them, according to Forbes. The American economy benefits from the integral role of entrepreneurs who take risks, innovate, and disrupt industry sectors with new ideas, products, and services.
It is through entrepreneurs and the small businesses they create that innovation, competition, and job creation thrive. Entrepreneurship is essential to America’s economic success, as it encourages investments, risk-taking, and creativity. By taking risks, entrepreneurs create jobs and generate revenues, which can lead to more economic growth and prosperity.
Entrepreneurship is beneficial to communities. By providing new job opportunities, entrepreneurs may reduce poverty and improve their quality of life. Entrepreneurship can also help to revitalize struggling communities, as small businesses can bring new life to a neighborhood, providing employment opportunities, new services and products, and increased tax revenue.
Please do not be dissuaded by the fancy French word “entrepreneur.” An entrepreneur is simply any person who wants to start a business.
It is not easy to build a startup. It takes a strong work ethic, resilience, and a desire to be financially independent. The good news is that motivated people in America are welcome to try.
Steps to Start a Business
Starting a business begins with an idea. However, before you rush out to do something without a good plan, it is better to do plenty of research and follow a step-by-step plan to start a business.
Take your idea and nurture it, but do not be so enamored that you fail to do the research needed to support the concept of making a business from your idea. You want to find a need you can fill and offer a powerful value proposition to your customers.
Creating a formal business plan helps focus on your ideas. You want to demonstrate that you comprehensively understand the proposed business and have identified the risks and potential rewards.
If this is the first time you have attempted to start a business or are not confident you know what to do, you may find the resources of the Small Business Administration (SBA) and the SCORE mentorship program helpful. SCORE mentors are volunteers who have significant business experience and offer free business advice.
Why are people turning to entrepreneurship?
Some common motivations for people starting an independent business today include wanting to be their own boss, attaining financial freedom, building wealth, and advancing social causes.
Reasons often cited by entrepreneurs for their choosing this path to success include having unconventional thinking, not fitting in well with a structured corporate environment, maintaining a lifelong passion for learning, and having a tremendous desire to change the world.
Being Your Own Boss
Entrepreneurs have a strong desire to be their own bosses. Many people have intolerable bosses and are working in dead-end jobs for low pay. Companies may suddenly lay off workers or force older workers into early retirement. When working for a larger organization, there are many circumstances that employees do not control. A general economic slowdown can put you out of a job.
As a small business owner, you will face economic challenges, and they may be even more difficult than you expect. An example is that the only person unhappy that the upcoming Friday is a payday is the business owner, who worries about sufficient cash flow to make payroll. Nevertheless, as a business owner, there is a feeling that you have the chance to make the choices that create your future, and that feeling is empowering.
Attaining Financial Freedom
U.S. News reports that 64% of adult Americans live paycheck to paycheck. If that is your condition also, you will never attain financial freedom unless you choose to do something powerful to change your circumstances.
One possibility worth considering is to start a side gig, which is a micro business and then gradually turn it into a full-time operation. Lots of companies start this way. Although you may be exhausted working the extra amount, you will also have a chance to succeed without risking everything going full-time on an unproven concept.
Achieving financial freedom takes time. Invest in yourself. Make a long-term savings and investment plan and stick with it. Something as simple as automatically taking some of your pay and investing or saving it helps you accumulate resources over time.
Another attraction for entrepreneurs is the idea of building generational wealth that will support family members. Many small businesses are family owned and operated. There is a wonderful sense of pride in being part of a family legacy and following in the footsteps of those who pioneered the opportunity.
One word of caution: some children want to be part of a family business, and others do not want anything to do with it. It is best not to force this issue and make children work in a way that does not bring them personal satisfaction. Most parents want what is good for their children, but not all parents know what their children want. As children grow into adults, they should be allowed to decide for themselves.
Advancing Social Causes
Entrepreneurship is not limited to for-profit efforts. The same dedication and skills apply to social causes and nonprofit work.
Consider the example of two very similar hospitals with the same number of beds, equipment, and needs for doctors and nurses, etc. The main difference between a for-profit hospital and a nonprofit hospital is that profits compensate investors in the first case. There are no profits used to pay investors in the second case. The operating structures may be quite similar, but the pricing schedule for the clients served may be quite different.
Entrepreneurs who work for social causes do so because the work has more meaning for them.
The spirit of entrepreneurship is alive and well in America. Starting a business is still a vital part of the American Dream, and that dream continues to motivate entrepreneurs. The Commerce Institute reports that over five million businesses started in America during 2022. If you also dream of starting a business, you are encouraged to pursue it energetically.