Everybody dreams of it, everybody wants to be their own boss; everybody wants to own their own business. The irony: very few succeed at starting and running their own businesses. This is the reason why the likes of Richard Branson and Donald Trump are celebrated. They have achieved what many come close to only in their dreams.
In a world where self-help books are the new fiction, authors have made us to believe that anyone can be a successful entrepreneur. They say you should follow your passion and you will make it. The solution to all work related problems is said to be entrepreneurship. Flexible work schedule, more salary and escape from nagging co-workers. The question is, if this is so true, if “The Secret” is all it takes to succeed, then why is it that 60% of businesses do not make it beyond their first year, and why do many more fail before the fifth year?
The answer is Ineffective Entrepreneurship. Such cannot outlive the initial excitement of owning a new business. It is a characteristic of many so-called entrepreneurs today. The list below identifies some of the common characteristics of ineffective entrepreneurs.
Characteristics of an Ineffective Entrepreneur
· Authority-Such people have a problem with anyone telling them what to do. They will always make a deliberate effort to disobey any rules at the workplace. They incite others to join in the rebellion. The only reason they want to be entrepreneurs is so that they can live lawlessly. If you cannot work well under another person’s leadership, what assures you that you can lead yourself?
· Time-Ineffective entrepreneurs cannot keep time. They have an inability to prioritize and always have excuses for their lateness. If you cannot keep time on an 8am -5pm job, how then will you manage a job that takes up 24 hours?
· Teamwork- Ineffective entrepreneurs cannot work in teams. They are so self absorbed that there is no space in their lives for other peoples’ opinions. The problem with this is that Human Resource is the greatest resource for any business today. No entrepreneur made it by doing it all alone. It is easier to take a market with a team of motivated employees than all alone.
Entrepreneurship has been glorified so much that its disadvantages have been almost entirely ignored. It is true that every coin has a head and a tail. People who go into entrepreneurship without considering the down side often fail. They fail because they are not prepared when their new business fails to meet their expectations. We highlight some of the disadvantages of entrepreneurship to be prepared for in order to avoid ineffective entrepreneurship.
Disadvantages of entrepreneurship
· Salary-There is a general belief that when you start your own business, you will earn more than you would in formal employment. This is not true for ineffective entrepreneurs. You will probably make losses at the beginning of your entrepreneurial journey. High start-up costs are the reason for this. The situation will improve for effective entrepreneurs and the profits will start trickling in. However, ineffective entrepreneurs continue to make losses perpetually. This is usually attributed to flaws of ineffective entrepreneurship e.g. inability to manage work teams and time.
An ineffective entrepreneur is better off in formal employment where they are guaranteed of a regular salary-if they are not fired-other than running their own businesses.
· Time- Formal working hours run between 8am and 5pm. Informal working hours run 24 hours. An entrepreneur cannot sleep in peace if the debtors have not been paid, or a major customer is not satisfied. You will not have more free time as an entrepreneur; in fact, you will be required to work longer hours to make it.
· Responsibility- The only responsibility you have in a formal job is that contained in your employment contract. If you are one who hates any additional responsibility yet you are thinking of entrepreneurship, think twice. The responsibility an entrepreneur bears is infinite. He needs to ensure there is enough money at the end of the month to pay all the bills and salaries or else somebody will be unable to pay a child’s school fees. He is accountable to the customers who are dissatisfied. The reputation oof the business is a great concern of his. The entrepreneur needs to ensure employees remain motivated to work for him. This is just a tip of the iceberg. If you are responsibility-averse, for your own sake, please sick to formal employment. Remember, unlike formal employment, you cannot run away from your business. What makes it harder is if the business name is your name. It is easy to look for a new job and quit your old one, not so in entrepreneurship.
If after reading this, you have no doubt about your entrepreneurial ability then go for it. If you do, you could consider being really good at your job. In case you succeed, you can convince an effective entrepreneur to pay you a regular salary of Ksh 1Million.
©Mideva Lumire
2011
No comments:
Post a Comment