TOP 11 REASONS WHY PEOPLE START A SMALL BUSINESS

According to Forbes, The SBA defines a small business as an enterprise having fewer than 500 employees and also, that there are almost 28 million small businesses in the US and over 22 million are self employed with no additional payroll or employees (these are called non-employers). As a matter of fact, it shows that the driving force in any developing economy remains the small business enterprises which constitute the real sectors. In the light of the foregoing, find the top 9 reasons why people start a small business.

1.     DESIRE TO BE YOUR OWN BOSS: The ultimate dream of taking control of events around you without resorting to taking orders from anyone has necessitated the urge for starting a small business. SMEs in advanced countries are major contributors to private sector employment. Empirical studies revealed that small businesses contribute to over 55% of GDP and over 65% of total employment in high income countries, they account for more than 60% of GDP and over 70% of total employment in low income countries while they contribute about 70% of GDP and 95% of total employment in middle income countries (OECD, 2004)

2.     BUSINESS IDEA REALIZATION: The desire to pursue a business idea pushes many would be entrepreneur to set up a small business. This business ideas are sometimes more practicable when tried with the set up of a small business ventures.

3.     FINANCIAL CONSIDERATION: In order to fulfill certain financial consideration in life, people start a small business as full-time endeavors or as a part-time income earning business ventures. The moment financial obligations increases and the salary seems inadequate to fulfill those responsibilities, the frustration that comes with it ignite the spark to start a small business ventures to augment the salary

4.     FRUSTRATION WITH PRESENT EMPLOYER: The inherent frustrations associated with working 9-5 job are a growing factor for starting a small business.  The moment an employee start complaining about his job not being attractive anymore, it could lead or force such a person to start a business of his/her own. . According to a report released by Gallup, the Washington, D.C. based polling organization, there are twice as many “actively disengaged” workers in the world as there are “engaged” workers who love their jobs.  

5.     OPPORTUNISTIC CIRCUMSTANCES: If an opportunity in the economy triggers the desire to start a small business and the requisite skill, tools, funds and wherewithal is available at the very moment, a small business set-up could surface taking advantage of such opportunity. E.g, the Ebola crisis in 2014 which made many to start the business of Hand sanitizers

6.     LACK OF GROWTH IN THE PREVIOUS EMPLOYMENT: Once it is perceived that an employee is not growing in a particular work environment, it usually present the opportunity to start a small business where growth and development is not dependent

on the decision of a constituted authority.  According to Jobvite,  the top reasons why job seekers will leave for another job: more compensation (61%), location (42%), better work-life balance (40%), health benefits (36%), growth opportunities (35%), company culture (21%) and leadership (15%).

7.     FAMILY BUSINESS TRAITS: For those whose family has a long history of running a successful business, it is possible to have people from such families to always want to go the family way by setting up a small business bearing in mind that they can as well get funding from an inherited family fund. You can also be part of your spouse business in a lot of way, like I am the brand and business development manager of my wife's fashion business and am loving the challenges on how she serves her customers right.

8.     INVITATION TO RUN SOMEONE ELSE’S BUSINESS: Sometimes, people are called upon to manage and run someone else’s businesses due to the skills and knowledge they possess about that particular line of business. The reward for this arrangement is usually agreed on a profit sharing basis.

9.     DESIRE TO HAVE A BRAND NAME IN THE MARKETPLACE: Starting a small business is a surer way to carve a niche and take part of the market share no matter how small that may be. With a small business name, it is possible to grow and become a major player in the scheme of things.

10.                        HEALTH/MEDICAL REASONS: Medical conditions sometimes forced individuals to opt for the option of setting up a small business that will not limit their potentials despite their medical conditions. With a small business operating from home, a medically challenged person can still be his/her own boss in a chosen field.

11.                         SOCIAL STATUS SYMBOL: The society accord respect to people who operate business of their own ahead of the working class people who operate from 9-5 at the whims and caprices of the paymasters. In order to achieve a social status symbol, an individual or group of persons could float a small business ventures to fulfill such desires.

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