By Lee Rubin
I'll get straight to the point: No, despite what certain "business influencers" would like you to believe, entrepreneurship is not a great idea for everyone.
90% of startups fail, and 10% fail within the first year. And in the small business realm, the data looks about the same! Approximately 65.5% of small businesses fail, with 18.4% failing in the first year.
Across every industry, this data is close to the same. Why is the failure rate so high? Well...
To be clear, I'm not highlighting this data to discourage anyone from going after their dreams. I want to paint a realistic picture of what someone is up against if they choose this life because so many people promoting this lifestyle aren't clear about the reality.
Did you know that 43% of Americans aim to start a new business in 2022? And, on top of that, one-third are first-time entrepreneurs. 😲
What could possibly be driving this?
Guidant Financial's 2022 small business owner survey revealed the three biggest reasons behind what drives people to take the risk:
At a glance, this data seems almost impressive. So many people are pursuing their dreams? Going after what they want?
But, to be frank, this data worries me. 😬
Are these many people dissatisfied with their careers? Are offices not offering the flexibility and growth opportunities people clearly desire? Do companies not find ways to help employees mix their passion with work?
If someone's job pushes them out to the point they want to risk starting their own business — is that really a reason to celebrate?
Despite all the risks involved, people still choose to start businesses. They take their business idea and run with it because they either don't understand the reality or they don't care about the reality.
Your employees know what they want, and if their current situation isn't meeting their desires, why would they stay? They would rather sacrifice career stability for fulfillment.
If you'd like to retain your talent and save them the headache (and heartache) of becoming an entrepreneur, you have to listen to what they care about:
As a leader, it's your job to show your team they don't have to be Mark Zuckerberg to be fulfilled.
Not everyone is cut out to be a successful entrepreneur. Most people won't be successful entrepreneurs. But by showing your employees you genuinely care, workplace leaders can give them a much better, much more fulfilling life and employee experience than that.