Studies completed in 2020 found that 64% of the UK workforce wants to set up a business and 83% of 18-24-year-olds aspire to become self-employed (Credit: SME Loans). From these figures alone, we know how many of us dream of becoming entrepreneurs but for one reason or another, we don’t take the jump.
In this guide, we look at the positive reasons for starting a business to provide you with inspiration that could persuade you to dive into the world of self-employment.
#1 – Autonomy
Without a doubt, autonomy is one of the main reasons people aspire to start their own business. According to self-determination theory (SDT; Ryan and Deci 2000), autonomy was found to be one of the three basic psychological needs for human beings. Becoming self-employed and operating based on your own terms helps to work towards achieving autonomy. This is because you will have the freedom to make your own choices and decisions, allowing you to steer the business in the direction you want to go.
The self-determination theory states that when a person is autonomously motivated their performance, wellness and engagement is heightened. Based on these studies, autonomy could help you to perform better in the work that you do and also achieve greater well-being and happiness in life.
#2 – Build around you
Build your business idea around the things that drive you in life. There are millions of business success stories based on people who have taken their passion and turned it into a business opportunity. Taking this approach has enabled these individuals to believe in their idea and enjoy the work that they do on a daily basis. Having this sense of belief and passion is vital to you and your business because it will help you to push through the inevitable lows of your start-up journey.
Building the business around you also means that you are doing some that you are familiar with. This means that you are more likely to have the skillset developed to ensure you succeed in your market. Learning and self-development are a big part of entrepreneurial life so make sure you don’t use this as an excuse to stop learning. Take the time and resources to invest in your development and you’ll see great returns. As Warren Buffet says, “Investing in yourself is the best investment you can make”.
#3 - Give back
One of the beautiful things about starting a business is that it provides you with an opportunity to give back to the world and this can occur through various mediums.
When you start a business, your product or service should be adding value to your customers otherwise you’ll achieve no success. This element of added value associated with the product or service you are offering could change someone’s life so knowing you and the business can play a part in that impact is a wonderful accomplishment.
In addition to changing lives through your offering, you could also be changing lives as part of the business's corporate social responsibility (CSR). In the modern world, CSR has become a focal point for business owners. It’s a chance for a business to serve the community and contribute to a cause that the business strongly believes in such as climate change.
As a business owner, you not only have the power to give back but also to influence. The actions that you take will influence key stakeholders such as customers and employees which can be used to help change the world for the better and contribute to an impact that is far greater than the business itself.
#4 – Financial freedom
Financial freedom is certainly one of the top reasons for someone starting a business, after all, the sky is the limit when you are your own boss.
If you are in a position to give yourself a pay rise, you have the freedom to do so when you are the one running the business. However, this shouldn’t be taken for granted. The business still needs money to operate and grow so you need to be aware of how much you can afford to pay yourself. Alternatively, injecting profit back into the business helps the business to grow which would yield you greater financial returns further down the line.
#5 – Learning
The importance of learning and investing in self-development was raised in the point of building the business around you. We’re going to mention it again because it is one of the reasons why you should consider starting a business.
Learning and developing is a continuous part of our lives because the world is forever changing. For us to be effective and make a difference in the world, we need to keep ourselves up to date. This couldn’t be more important when you are running your own business.
Not all employers provide the opportunity for staff to take on continuous learning which is a huge disadvantage because those individuals will be left behind. Starting a business provides you with the ability and the means to start investing more in your learning so that you can achieve the skillset and understanding that will enable you to make an impact.
We are here to support
Starting a business is no easy task. 20% of small businesses fail within the first year, however, you shouldn’t let this deter you from pursuing your dreams. It simply means that you should plan and get started correctly to avoid the common pitfalls.
The SME Centre of Excellence team is here to support you so that you don’t have to face your business challenges in isolation. Contact our team to find out how we can help you.