What is Entrepreneurship and Why Take the Risk?

Follow the traditional path, get an education and get a steady job with good benefits. That's the advice many of us received from our parents and followed because that was the sensible thing to do. But, is that the only path or the best path for everyone?

I'd argue that there's no right or wrong answer to this question. Since everyone is unique and has different levels of risk tolerance, it's understandable that many feel comfortable in the predictable nature of following the well traveled path and embracing a standard lifestyle (which is perfectly fine).

What about those that want a different path? Is Corporate America and being a lifelong employee the only viable option?

In this post we'll be discussing the meaning of entrepreneurship and why some people choose to become entrepreneurs.

History of the word Entrepreneurship

"The word entrepreneur originates from a thirteenth-century French verb, entreprendre, meaning “to do something” or “to undertake.” By the sixteenth century, the noun form, entrepreneur, was being used to refer to someone who undertakes a business venture. The first academic use of the word by an economist was likely in 1730 by Richard Cantillon, who identified the willingness to bear the personal financial risk of a business venture as the defining characteristic of an entrepreneur. In the early 1800s, economists Jean-Baptiste Say and John Stuart Mill further popularized the academic usage of the word “entrepreneur.” Say stressed the role of the entrepreneur in creating value by moving resources out of less productive areas and into more productive ones. Mill used the term “entrepreneur” in his popular 1848 book, Principles of Political Economy, to refer to a person who assumes both the risk and the management of a business." Source: EconLib

What is Entrepreneurship?

Someone who invests resources (financial, time, intellectual, physical sweat equity, etc) into an idea to create a profitable business. 

Employees have ideas and work hard too so what differentiates an employee from an entrepreneur? An entrepreneur is willing to take risks with his/her own resources in order to grow and foster a business they directly control. An employee has a defined job that pays for their time regardless of their company's risk or profit. Because entrepreneurs take on greater risks, their reward is potentially uncapped while an employee typically has a limited salary range.

We all have the potential to be entrepreneurs, but not everyone wants to face the risks or start something from scratch. Successful entrepreneurs often share traits like discipline, curiosity, creativity, motivation, adaptability, risk tolerance, and persistence. Of course this isn't a definitive list because all entrepreneurs don't fit inside a neat box. So even if you don't have all these traits, don't be discouraged, you can still try entrepreneurship.

Why take the risk?

Source: Business Ideas 365 (Twitter)

Many people question why entrepreneurs choose the risky path over a stable paycheck that provides financial stability. There are several appealing reasons:

• Personal fulfillment of creating and growing a business you're passionate about
• Financial goals and financial rewards since entrepreneurship has a history of yielding some of the richest individuals in modern history (i.e. Elon Musk, Jeff Bezos, Bill Gates, Sam Walton, Oprah Winfrey, etc.)
• Control and autonomy in hour you use your time and live your personal life
• Possibility of building a lasting legacy for your family or community
• Positive Impact on society in job creation, community investment, engineering feats, innovation, etc.

For me it's a combination of all the above plus one more very important one, purpose. I wish I had a deep profound statement about what my purpose is but the truth is I simply don't know. Every guru tells you that you need to follow your passion or go chase your purpose but what happens when you're not passionate about anything in specific or know what your exact purpose is?

In my post Breaking Free from the 9 to 5: Why I'm starting the Corporate Divergent Community I mention that I followed the traditional path and tried multiple side hustles but none was the "IT". I'm still trying to find my purpose and although I can't tell you what my purpose is, I can tell you what it is NOT. Working a 9 to 5 for the remainder of my useful life is the scariest outcome and even thinking about the possibility makes me break out into a sweat. Again, nothing is wrong with having a 9 to 5 job and then retiring but deep down inside, I know that its not the plan for me.

If you feel any of the following maybe it's time you consider entrepreneurship too:

• You feel burned out from your life (mundaneness of life and work)
• You feel you are underutilized (skillset or potential are going to waste)
• You see no significant growth potential (no matter how many degrees, accreditation's, new skills, overtime hours you put in your salary is pretty locked in)
• You have a nagging idea that persistently pops up at every opportunity or your mind keeps telling you to start a business
• You can't stop negative thoughts and dread the idea of the weekend coming to an end (Sunday blues at 3pm)

There are many reasons we should all become entrepreneurs but ultimately it's a personal decision. Embracing entrepreneurship doesn't necessarily mean leaving your current job, you can do it by pursuing a side hustle or gradually building a business slowly over time. Building your entrepreneurial spirit is an ongoing process that can be developed and strengthened as you get deeper into the various stages of entrepreneurship, which include freelancing, self employment, becoming a business owner and finally an Investor.

Figuring out if you want to be an entrepreneur and run a successful business can be a challenging task to tackle alone. This is where the Corporate Divergent Community comes into play. As a support group, it can help you navigate the path from employee to entrepreneurship, providing guidance, resources, and a network of like-minded individuals who share the same aspirations.

In conclusion, whether you decide to follow the traditional path or venture into entrepreneurship, it's important to remember that there is no one-size-fits-all answer. It's about finding the path that best aligns with your values, goals, and aspirations. Trust your instincts, embrace your unique journey, and remember that the Corporate Divergent Community is here to support you every step of the way.