3 Main Reasons People Become Entrepreneurs & Start Their Own Firms

The three main reasons people become entrepreneurs and start their own firms are:

internal locus of control, Venture opportunity, and economic displacement. 

Internal locus of control allows an entrepreneur to control, direct, and adjust the outcome of their own individual effort. For many entrepreneurs, the sense of accomplishment one provides themselves by ‘doing it my way’ is often the reason for an entrepreneurship. 

Venture opportunity allows an entrepreneur to utilize their vision and knowledge of a market place, scanning for new opportunities or new ways of adapting old technology. Many times an entrepreneur is able to identify an opportunity and turn that opportunity into an implemented plan.

Economic displacement is another aspect that motivates entrepreneurship. An entrepreneur is often able to renew a community that has been afflicted by economic strife. Dan Gilbert in Detroit Michigan has created multiple complexes and infrastructures in Detroit, to rebuild a community stricken by the collapse of the automobile industry in 2008.

If I were to describe 4 main characteristics of successful entrepreneurs, with examples:

Efficacy: an entrepreneur who is able to seize an opportunity, create an vision, implement a plan, organize and take action, follow through and persevere on an idea, until they produce their desired result, is true entrepreneurship. Understanding the inherent risk, and still being able to produce a desired outcome in business, is a strength every entrepreneur should have or develop.

The ability to influence others is a characteristic that is paramount to an entrepreneur’s success. Building a team of experts and high performing team members requires an ability to sell other people on your ideas and vision. Influecing others in the face of fear and risk is important. Most people want security and longevity. Influencing others whether as a leader or salesman is important.

Ability to learn from mistakes as an entrepreneur should be a standard operating procedure. As an entrepreneur, you will face roadblocks, defeats, and failure. How you respond to those adversities in business means everything to an entrepreneurship.