In the aftermath of the COVID-19 pandemic, entrepreneurship exploded in popularity. The U.S. Census Bureau reports that Americans applied to start 10.5 million new businesses in 2021 and 2022—the highest number of business applications on record.1 These new enterprises take many forms, from one-person cake-decorating companies to ambitious tech startups with dozens of employees.
Starting a new business can be risky, but the numerous benefits of entrepreneurship make this career path appealing to many people. Business founders become their own bosses and can achieve new levels of personal and professional freedom. Additionally, launching a company provides countless opportunities to sharpen valuable skills.
Keep reading to discover the top five benefits of entrepreneurship and how you can begin your journey.
What Is Entrepreneurship?
Entrepreneurship refers to the process of brainstorming, launching, and developing a company to earn a profit.2 New businesses typically fill a gap in the market by providing novel products or services. For instance, a mobile dog-grooming business could provide accessible services in an area with few pet-care options. Entrepreneurs may also invent better versions of existing items or services, such as a more efficient robotic vacuum.
Entrepreneurs come from all backgrounds, but they tend to have several traits in common:3
- Innovation: Entrepreneurs often invent and implement new ideas quickly
- Internal sense of control: Business owners may feel more internal agency and cope with challenges more successfully than people who believe they have little control over their lives
- Risk-taking propensity: Entrepreneurs are frequently more comfortable taking risks and seizing commercial opportunities than non-entrepreneurs
- Self-efficacy: People who start businesses tend to feel confident about their ability to excel in new situations and overcome obstacles
Aspiring entrepreneurs can develop these characteristics by completing a business degree, such as the online MBA from Yeshiva University. You may also find it helpful to participate in activities that take you out of your comfort zone, such as networking or joining a public speaking club.
The Benefits of Entrepreneurship
Entrepreneurship has many advantages over other forms of employment. People often start a business because they want to feel passionate about their work. A person who enjoys cooking may create a food truck or catering company, while a musician can teach private lessons. A business that fits your interests and strengths can provide more personal fulfillment than other careers.
Other benefits of entrepreneurship include:
A traditional nine-to-five job typically offers the security of a steady paycheck and benefits. However, employees can lose their jobs with little warning if the economy takes a downturn or their bosses no longer need them. In 2022 and 2023, for instance, a wave of layoffs in the tech industry and other sectors caused thousands of workers to lose their jobs without warning.4
Entrepreneurship empowers you to take control of your career and finances. According to a 2022 study by the accounting firm Pilot, startup founders who employ zero to five full-time employees earn an average yearly salary of $94,000. Small business owners who work remotely make an annual average of $134,000.5
Unlike traditional employees, entrepreneurs can’t be easily removed from their positions, especially if their companies don’t have boards of directors. Additionally, the salaries for business owners are more dynamic. Instead of passively waiting for a raise, entrepreneurs can take steps to increase their incomes, such as launching new products or expanding marketing campaigns.
Set Your Own Schedule
According to Slack’s 2022 Future Forum, 94% of employees want the freedom to establish their own schedules. However, 57% of respondents reported that their employers don’t allow them to adjust their work hours.6
Entrepreneurship allows people to break free of the nine-to-five grind and work at their own pace. For example, a bookstore owner who enjoys a night-owl lifestyle can choose to open the shop at noon. Similarly, consultants may schedule client meetings around their kids’ extracurricular activities. This flexibility can help entrepreneurs balance the demands of their growing businesses with family commitments and hobbies.
Exercise Your Creative Skills
People often associate creativity with the arts, but entrepreneurs in all industries develop innovations. Usually, new business founders begin with an idea for a new product, service, or process that will stand out from the competition. Entrepreneurs also flex their creative muscles when they name their companies, develop brands, and promote their products.
Additionally, creativity helps entrepreneurs overcome unexpected challenges.7 During the COVID-19 pandemic, the owner of Moriarty Gem Art decided to livestream exhibitions at the small gallery instead of hosting in-person shows. Similarly, TeamBuilding, a company that helps coworkers collaborate, invented new bonding exercises, including virtual scavenger hunts.8
Enhance Your Problem-Solving Abilities
Data from FreshBooks’ Annual American Self-Employment Report shows that 53% of small business owners and self-employed people view problem-solving as an essential skill.9 Entrepreneurs deal with many issues that range from easy-to-solve to complex. As a result, they have numerous opportunities to practice abstract thinking and creative problem-solving.
For example, the MetLife and U.S. Chamber Small Business Index found that 53% of small business owners view inflation as the primary challenge. Entrepreneurs may address this problem by finding new sources for their products or raising prices. Also, the study reports that 22% of business owners struggle to earn enough revenue.10 Creative advertising campaigns or cost-cutting measures could solve this issue.
Positively Impact Your Community
Entrepreneurs can make a difference by using their companies to support local communities. According to the U.S. Small Business Administration, small businesses create 66% of all new jobs.11 Thus, you can contribute to your community’s economy by hiring local employees.
Additionally, many entrepreneurs use their positions and finances to aid community organizations. For instance, small businesses often sponsor children’s baseball teams and raise money to support local charities. These activities can build goodwill within the community and serve as another way to promote a business.
Design Your Future as an Entrepreneur
Many people have turned their dreams of starting a business into reality. However, entrepreneurship requires business savvy and the right skills.
An online MBA from the Yeshiva University Sy Syms School of Business can help you achieve financial and professional success. Drawing on decades of experience, YU’s expert faculty will teach you how to build business relationships and transform your ideas into successful startups. Additionally, you’ll study practical topics such as organizational behavior and marketing to advance your business.
Get in touch with an Admissions Outreach Advisor today to start your application.
- Retrieved on May 15, 2023, from whitehouse.gov/briefing-room/statements-releases/2023/01/24/fact-sheet-biden-harris-administration-expands-access-to-capital-and-support-for-small-businesses/
- Retrieved on May 15, 2023, from startupsusa.org/what-is-entrepreneurship/
- Retrieved on May 15, 2023, from link.springer.com/article/10.1007/s11846-021-00466-9
- Retrieved on May 15, 2023, from hbr.org/2023/03/research-remote-workers-are-more-anxious-about-layoffs
- Retrieved on May 15, 2023, from pilot.com/founder-salary-report-2022
- Retrieved on May 15, 2023, from futureforum.com/wp-content/uploads/2022/07/Future-Forum-Pulse-Report-Summer-2022.pdf
- Retrieved on May 15, 2023, from forbes.com/sites/chriscarosa/2022/10/16/why-is-it-important-for-an-entrepreneur-to-have-creativity/
- Retrieved on May 15, 2023, from shrm.org/hr-today/news/all-things-work/pages/small-businesses-get-creative-to-survive-during-the-pandemic.aspx
- Retrieved on May 15, 2023, from freshbooks.com/press/data-research/annualreport
- Retrieved on May 15, 2023, from uschamber.com/small-business/the-biggest-challenges-small-businesses-are-facing-right-now
11. Retrieved on May 15, 2023, from advocacy.sba.gov/wp-content/uploads/2022/04/Small-Business-Job-Creation-Fact-Sheet-Apr2022.pdf