Entrepreneurs seem to be a growing breed, changing the world with one new company at a time (not that the ‘old’ companies aren’t doing a fine job). Entrepreneurs question the norms and do things differently, they change the way we work and the way we communicate. And boy, is there a lot of failure and success involved.
Global Entrepreneurship and Development Index
The USA ranks first out of 138 countries in terms of providing the best environment for cultivating entrepreneurs using the Global Entrepreneurship and Development Index, which might not come as a surprise given the notorious ‘American Dream‘ and all that talk about self-made Americans.
The full top ten list looks like this:
- United Kingdom
(And Finland didn’t quite make the list, ranking 11th, get out of that sauna!)
FAILING VS SUCCEEDING?
There are three main reasons why businesses fail and go under. 46% is due to incompetence, 30% due to lack of managerial experience and 11% due to lack of experience (the remaining 18% is apparently blamed on fraud, natural disasters and neglect – whatever that means).
On a more positive note, entrepreneurs who were involved in a previous business have a 30% chance of succeeding in their next venture. (Maybe that’s what they call karma?) In contrast, first-timers only have an 18% chance of surviving. Fret not, it could be much worse! What’s interesting is that entrepreneurs who failed and tried again only have a slightly higher, 20%, chance of success with their new venture.
I WANNA BE A BILLIONAIRE?
Nearly 40% of business owners have a Bachelor’s Degree or higher – which means it’s quite an educated bunch of people. 62% of all 585 (!) US billionaires are self-made, which correlates with the fact that 83% funded their own businesses, probably surviving many tough years on porridge, public transport and the generosity of friends and family. Over half of all businesses were run from the entrepreneur’s home or – quite likely – from their kitchen table. Only 11% bought their ventures, inherited them (3%) or got them, e.g. as a gift (4%). Christmas is coming!
Successful or not, it seems like 64% of entrepreneurs think it’s their duty to have a positive social and economic impact on society. 74% also supported charities and good causes in the preceding year. To that, a third of these visionaries took an unpaid role in the community and/or donated their time or expertise to social causes. That, people, is game changing.
So what’s the moral of the story?
Just do it. (Hard work always pays off)