Title: Why do most entrepreneurs fail during start-up?
Name: Purinat THANAPHAISANPHIPHAT
Tutor: Paula de Pando
Word Count: 1833
Owning your own business is a desirable alternative choice because of the unpredictable world economics trends. Global economy substantially fluctuates from
USA and many European countries having recession in the last decade. Many fulltime workers lost their jobs and the situation still does not pick up from the fact that unemployment rate is still increasing. According to an article published The United
Nations (2014), average global unemployment rate is approximately 6 percent. The numbers of today’s existing jobs may be higher than the numbers of jobs that will exist in the future because it seem likely to be that we are moving toward mass production trend which mainly operated by unmanned machines. Many people might be starting their own businesses from the feeling of insecurity in their job.
Entrepreneurship is becoming more and more popular for a generation that was born during 1982 to 2000. This generation has grown with full access to up-to-date technology, information and better education (Susaeta et al., 2013). They would work in risky jobs rather than having comfortable careers if those fulfill challenges and gives opportunities to them. In addition, this generation would like to have a work-life balance. To summarize in a sentence, this generation might not be loyal employees as previous generations because of current world economics, having their own business may be an attractive alternative for this sector of the population.
Since there are many new businesses in these times, some entrepreneurs succeed but not all of them. There are many internal and external factors that affect businesspeople. Some barriers obstruct many entrepreneurs. This essay will examine method of business operations by successful and unsuccessful entrepreneurs. Next,
This essay will separate them into four essential factors that affect their
1. Why do many entrepreneurs fail during the start-up process while others succeed? Many business owners fail because of their mindsets. They misunderstand the main idea of entrepreneurship. Mindset is like an engine of a car and type of fuel is their entrepreneurial attributes. So, using a wrong fuel may result in a broken engine (Kao,
1997). Hard working entrepreneurs do not translate to success if their works are missing the point. If they cannot systematically manage chaos and unpredictable problems, those might be the reasons why most entrepreneurs cannot achieve their goals. This trap will enslave them instead of supporting them to be free (Gerber,
1.1. Unsuccessful entrepreneurs
Unsuccessful entrepreneurs may not thinking of balancing technical skills and management skills. Gerber (2014) explains that many technicians tend to be unsuccessful business owners because they misconstrue the difference between technical terms and business term. On the other hand, an ineffective businessperson may employ someone who is clever at solving problems to help them instead of learning how to be resources fact and solve these problems instead of learning how to be resource fact and solve these problems. Moreover, many owners lose their passion and give up conducting businesses when things go wrong. They lost an important key to be a successful entrepreneur. Entrepreneurs need to understand core facts of their businesses. 1.2. Successful entrepreneurs
Most successful entrepreneurs have strong ambitions and correct understanding of how to start their own businesses. Creativity is an essential element of entrepreneurship according to Kao (1997). There are three career paths that people who would like to start their own businesses should consider: an entrepreneur, a manager and a technician. All of these paths have to be in one person (Gerber, 2014).