5 Reasons That People Start Businesses

17 Nov 2023 · 1 min

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In this short talk, the speaker highlights the high failure rates of new businesses—about 20% fail in the first year and 30% in the second—and stresses that understanding one’s personal motivation for starting a venture is crucial for increasing the odds of success. He outlines several common drivers: the desire for higher income, the need for flexible hours, joining or continuing a family business, being forced into entrepreneurship by job loss or difficulty finding employment, and the wish for autonomy and creative freedom away from the constraints of working for someone else. By recognizing which of these reasons applies to them, founders can align their priorities and values with their business goals, helping them stay focused and resilient.

Chapters

A lot of businesses fail, 20% the first year, 30% the second year. So to avoid failing in this new business and to increase your chances of success, understand why is it that you started that business. And there are many reasons. One is to have more income. Number 2, maybe you're thinking you can have flexible hours, or maybe you have a family business that you want to participate in, or maybe potentially run and own, or maybe you can't find a job, you were laid off or you're in between jobs, or you're just going back into the market and you can't find a job. So you you're thinking of starting a business. Or you don't like the constraints of working for someone else and you want to have your own business so you can be more creative and you can problem solve and help clients. So different people start new businesses for different reasons. It's important to understand why in your own mind. This way you align your priorities, your values to match the reason why you started a business.