How Certain Charasteristics Impact Entrepreneurship

When we look at a variety of things that may impact small business owners a few come to mind; the first of which is life experiences, and many agree that they do play a key part in the development of an entrepreneur. When we break the experiences down to individuals sections; we are better able to extract specific information as it relates to each

Education has been viewed as both a necessary component and one that is not so necessary. We certainly are all able to name successful organizations that were started by individuals without college or advanced degrees; Bill Gates of Microsoft, Michael Dell of Dell, Walt Disney, Steve Jobs and Rachel Ray to name a few. Also what we know is that according to The Small Business Policy Branch in Canada; in their July, 2008 report, they state the following:

“Failure rates for small businesses in Canada are high for the first three years and decline over time. About 70 percent of small businesses that enter the marketplace survive for one full year; half survive for three or four years. Approximately 25 percent of small businesses are still operating after nine years.”

Here in the US the statistics are a little better but not by much, according to information obtained from SCORE’s website; we find the following information for 2007.

“There were 637,100 new businesses, 560,300 business closures and 28,322 bankruptcies. Two-thirds of new employer firms survive at least two years, 44 percent survive at least four years, and 31 percent survive at least seven years. Findings do not differ greatly across industry sectors.”

Although many reasons exist for these results; including lack of capital, poor health and divorce; a lack of management experience is a reason that continues to be a suggested for the failures. Knowing that colleges and universities provide education for a variety of skills to increase or improve management abilities, one could make the case that even though education may not be a necessary requirement; it can be an asset in developing, learning or improving management abilities.

Career displacement has been a core element for many individuals starting their own ventures. Many people have been forced to begin a new business opportunity; just due to an inability to find another job. Some have had disagreements with an employer or felt the freedom to do something they have always wanted to try; because they may believe they know a better way. If an individual has acquired a skill or trade over a long period of time; losing a position is a way to encourage that person to draw on those talents to try something on their own. As a person that has started and operated four businesses, I fall into the categories of beginning my ventures due to a career displacement or believing I had a better idea than a former employer’s business approach.

When we look at parental or mentor influences; may people have credited their parents, parent or mentor for the success they have achieved in their business venture. Having the encouragement and support of a parent; can be a strong emotional asset for anyone giving a new venture idea a thought. Coupled that, with a parents own personal experience or even experience in a family business; would help smooth the path to the new businesses beginning. Some segments of population such as Japanese, Chinese, Greek and Jewish cultures have utilized pooled borrowing, along with mentoring; to help new businesses within their respective cultures get started. Certainly the support of the community, along with start up capital; gives a start up a greater chance for success.


Reading from an article in the New York Sun by Bloomberg News dated February 7, 2008 we get a snapshot of self employment.

“The number of people running their own businesses dropped by 365,000 last quarter, compared with the same period in 2006, according to separate Labor Department numbers. The decline in the number of hours worked by the self-employed last quarter reflected a 9% annualized drop in employment combined with a 7% decrease in average weekly hours for those still with work, the department said.”

Perhaps, in today’s economy with credit being tight, bank failures, global recession, massive layoffs and the cost of health insurance skyrocketing; we may see some unusual new characteristics that impact success in small businesses or will the opposite be true.