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
