By Don Sturgill
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I love the title of Michael Ellsberg's opinion piece in the New York Times: "Will Dropouts Save America?" (October 22, 2011). It is a concept that sounds improbable-even ludicrous-but consider the proof: From Steve Jobs and Bill Gates to the founders of Facebook and Twitter (all college dropouts), entrepreneurs-those who choose independence over punching a time clock-have made a big impact on our economy..
According to Ellsberg, President Obama was wrong when he told Congress small businesses are where most new jobs begin. Citing a study by the National Bureau of Economic Research (NBER), Ellsberg points out that it is, more accurately, start-up businesses, that account for nearly all new jobs in America. In their work, the NBER found that it is not the size of the business, but the age of the business that most determines the growth curve. And who launches business start-ups? You got it: Entrepreneurs.
Do you have what it takes to become an entrepreneur?
It takes guts to start a new business, though, and it is rare to find someone willing to let go of a comfortable job working for someone else in order to risk all on an uncertain idea. Entrepreneurs must be driven by some deeper need if they are to muster up that kind of courage. And, like the race car driver learns early on, they must focus on the track instead of on the wall. The voices, whether internal or external, warning of imminent failure can't be the primary concern of a successful entrepreneur.
The Kauffman Foundation is the largest group in the world focused on championing entrepreneurship. They surveyed 549 entrepreneurial movers and shakers to gain insight about who will (and who won't) take an idea and turn it into a viable business. From that data, here's a list of the top three reasons why you (and I) probably won't be the next Steve Jobs:
- We are afraid of taking the risk
- We don't think we have enough time or money to invest
- We believe that going on our own is much too difficult
By the way, in Kaufmann's study, just 11% of the entrepreneurs interviewed received any venture capital for their first start-up, and only 9% obtained financial help from private sources or angel investors. Prior work experience and the ability to learn from the past were found to be vastly more important prerequisites for entrepreneurial success. Most of us think having plenty of start-up cash is the key to success, but that doesn't seem to be the case. Many well-funded ventures fail.
Yes, the nation's economy is in sore need of entrepreneurs who are willing to step out of the crowd, muster up the courage and launch a new business. But which of us has enough faith and determination to do it? Certainly, a valuable product or service is required. Certainly, a well thought out business plan is required-but skills, goods and plans are readily available. The main thing a successful venture needs is someone to champion the idea and put in the work to move it from the realm of "a good idea" to an income-producing, employee-hiring reality.
Is it you? Are you that entrepreneur?
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