Entrepreneurship facts could be highly encouraging or extremely devastating, depends on you how you take it.
This is the generation of business and entrepreneurship. Entrepreneurship is on trend. Many of us want to be an entrepreneur for whatever reason like earning a lot of money, being your own boss, legacy etc.
There are more than 600 million entrepreneurs out there and the number is increasing day by day. It means a huge competition is waiting for you. So, it’s not that easy. According to a study, more than 90% start-up was shut down within 5 years. But don’t let these stats scare you.
If you are committed to being an entrepreneur than it’s great. But there is some question that you should address before you start.
- Why are you choose entrepreneurship as a carrier?
- What value can you provide in the society?
- What’s the special thing in you that stand you apart from the whole?
- Are you strong enough to face the initial challenges of entrepreneurship?
There are many questions like these that you should ask yourself before you start.
Here I described 40 entrepreneurship facts that every entrepreneur should know and also you. It may help you to find your answers and make it easier to be successful as an entrepreneur.
NUMBERS OF ENTREPRENEUR
There are approximately 7.6 billion people in the world and out of them more than 600 million are entrepreneurs. It means 1 in 13 people have their own business.
In the business world, age is just a digit and nothing more and many entrepreneurs already prove it. Who doesn’t know about KFC founder Colonel Harland Sanders? He started the business at the age of 65.
A study found that the average age of founders is around 42 years and the average age of high growth companies’ founder is around 45 years.
People think life is going to be amazing, glamorous and stress-free after becoming an entrepreneur. If you also think like this then forget it. To be honest, life is going to be very tough. As a founder you have to face different problem every day, you have put long hours with full dedication, you have to take tough decisions and a lot more. But if you are a true entrepreneur than you will like it.
ARE YOU A BORN ENTREPRENEUR?
Entrepreneurs are born or made. But there is a question in everyone’s mind, Am I born entrepreneur or I have to develop an entrepreneurial mindset? So, there are some ideas that could help you to find your answer.
- You don’t like nine-to-five lifestyle.
- You always love to learn new things.
- You want to make the world a better place for humanity.
- You like to help others.
- You have a great purpose in your life.
REASON OF BECOMING ENTREPRENEUR
It’s totally true that many of us have a great passion for entrepreneurship. But according to survey maximum people start a business for some specific reason.
- Earn a lot of money.
- The flexibility of being their own boss.
- Control over decision making
- Pick the team they want to work with.
According to a study, 26% of the current business owner are women. It’s increased by 18% compared to 2017. It means more women are starting to chase their dream of becoming an entrepreneur. Our research says, a company with women leader generating more revenue than a company with men leader.
FUND FOR YOUR STARTUP
This is one of the most important things in a start-up because without funding you cannot go far. Most start-ups fail because of the lake of money. Here is some way to fund your start-up.
- Self-funding/Bootstrapping (this is best for the initial stage)
- Friends and Family.
- Angel Investor. (angle investor come after a certain period)
- Venture Capital.
FASTEST GROWING INDUSTRY IN THE WORLD
The world is changing so fast and in the constantly changing world, you have to be aware of the latest demand of the market. Here are 5 fastest growing industry in the world.
- Renewable energy (Market worth $1.35bn.)
- Cybersecurity (Market worth $165.2bn. by 2023)
- Biotechnology (Market worth $727.1bn. by 2015)
- Virtual reality (Market worth $14.1bn.)
- Artificial intelligence (Market worth $9bn. By 25)
FAILING OF STARTUP
According to a survey, 90% new start-up fail within 5 years. This stat may scare you but if you don’t want to come among the vast majority then you have to do everything right.
REASON OF FAILING STARTUP
It’s very easy to talk about problems but not that easy to avoid those. Here I described 5 biggest reasons for the failure of start-ups, keep these in mind when you make a business plan for your business.
- No market need (42%)
- Lake of cash (29%)
- Bad timing (23%)
- High competition (19%)
- Pricing (18%)
REASON OF SUCCEEDING STARTUP
Success is the result of quality founders and team, some good decisions, right kind of mindset, learning ability etc. The number of failing start-up is big but there is some start-up which got huge success. We observe them and found some common reason for their success. Here those are…
- Founders are highly committed to their end goal and they are result oriented.
- They stick to their plan no matter what the obstacle is, they never give up on their vision.
- Entrepreneurs show patience and persistence when the time is tough.
- They learn from their mistake very quickly and make it right.
- They build a great relationship with their customer, employee, and investors.
- They raise capital according to their plan and spend it wisely.
- Founders have a great combination of business and technical knowledge.
BEST STARTUP ECOSYSTEM
- Silicon Valley.
- Tel Aviv.
- Los Angeles.
- New York City.
TOP 5 COUNTRY WITH HIGHEST NUMBER OF STARTUPS
The number of start-ups is increasing over time. Here are the top 5 countries with the highest number of start-ups.
- United States-45,579
- United Kingdom-4,777
TOP 10 STARTUP HUBS
- Silicon Valley – The Bay of Unicorns.
- Boston – Land of Tech.
- Seattle – The Community Hub.
- London – The Jolly Neighborhood.
- Berlin – The City without Walls.
- Stockholm – The New Kid on the Block.
- Bangalore – The Up and Coming Borough.
- Singapore – The Prodigy Child.
- Tel Aviv – The Cybercop.
- Toronto-Waterloo – The United Front.
TOP 5 STARTUP (VALUATION)
5 MOST STARTUP FRIENDLY COUNTRIES
Many of us are very curious to know that which country help the start-up most. There are many factors that determine what makes a start-up friendly country.
Here’s the top 5.
- Thailand- In Thailand you can start a start-up in only 5 days.
- Malaysia- It takes 19 days to start a business in Malaysia.
- Mexico- Mexico starting a process that takes 8 days to start a business.
- Indonesia- Indonesia will start a process which takes 23 days to start.
- Singapore- This country gives special attention to new businesses, it takes only 3 days to start over.
5 BIGGEST ACQUISITION IN TECH HISTORY
These are the 5 biggest tech acquisition of all time.
- Dell buys EMC ($67 bn, 2015)
- HP buys Compaq ($33.6 bn, 2001)
- SoftBank buys ARM ($32.3 bn, 2016)
- Microsoft buys LinkedIn ($26 bn, 2016)
- Facebook buys WhatsApp ($19 billion, 2014)
CHANGE IN WORKING HOUR
In the cut-throat competitive market as an entrepreneur, you have worked very hard, you have to put long hours and more than your competitor. It’s totally different from a 9-5 job. According to a survey, an entrepreneur in the USA works 80 hours a week at the initial stage.
HOW MUCH DO ENTREPRENEUR WORK PER WEEK?
According to a survey of hundreds of entrepreneurs revealed this stat, it will give you some idea of how many hours you should put in work.
- 19% work 60+ hours (per week)
- 30% work 50-59 hours (per week)
- 33% work 40-49 hours (per week)
- 14% work 30-39 hours (per week)
- 5% work less than 30 hours (per week)
According to a survey, 95.1% of entrepreneurs earned a bachelor’s degree or a higher degree. And 47% had a more advanced degree.
NUMBER OF SELF-MADE BILLIONAIRES
According to Forbes magazine, there are 2,208 billionaires in the world. And the average wealth of the billionaires is $4.1 billion.
67% (1490) of those billionaires are self-made.
WHAT ARE THE CHANCES THAT A FIRST TIME ENTREPRENEUR WILL SUCCEED?
A study says first time entrepreneur has an 18% chance of succeeding. An entrepreneur who failed in past has 20% chance of success.
COMPANIES STARTED OUT OF GARAGE OR A BASEMENT
At the early stage, it’s hard to invest money on office space. That’s why most people started their company from home, garage or a basement.
Research says 51.6% of the start-up was operated from someone’s home at the initial stage.
ENTREPRENEUR FOUNDED THEIR OWN BUSINESS
The number of self-founders is very big from those who purchased or gifted a business.
A survey revealed, 83.1% founded their own business. 11.3% purchased 2.8% inherited, and 4.4% transfer of ownership or gift.
A survey found that 70% of entrepreneurs were married when they start their first business, 60% had at least one child one child, and 44% had two or more child.
Among 90% of failure start-up, most are failing because of lack of experience in the chosen industry. Research says start-up with the experienced founder is more successful than others.
That’s why many people started their carrier as an employee in other company to increase their experience level.
According to a survey, 75% had worked as employees for 6 years before launching their own company.
As experience is the key but many other entrepreneurs launched their start-up without experience and most of the time they fail.
But as an entrepreneur, they learn from it and start again. The majority of entrepreneurs is the serial entrepreneur.
They start probably 2-3 business on average.
SALARY OF A STARTUP FOUNDER
Most entrepreneurs start entrepreneurship because of money and luxury. Because of the money factor, they start to pay themselves very high amount at the initial stage. But there is also such entrepreneurs who take a very sufficient amount.
According to The Next Web (tech news company), 66% of start-up founder pay themselves less than $50,000 (per year).
ENTREPRENEURS ARE RISK TAKER
This is the most common quality of all entrepreneur people. They are the risk taker. Many entrepreneurs invest their all savings in their business, it’s sound easy but believe me, it’s not.
In business things are uncertain. Situation change very quickly and as an entrepreneur, you have to take chances, take the risk to enhance the situation.
BENEFIT OF SOCIETY
The majority of entrepreneur start their business to solve an existing problem in the society. An entrepreneur and a business can add value in many ways.
- A business provides goods or service to satisfy certain public needs.
- Business creates a lot of job opportunities.
- It contributes to the national growth.
- It helps people to be educated and enlighten for their personal growth.
UNSUNG HEROES BEHIND ENTREPRENEUR
When a company becomes successful we appreciate only the founder. But if you take a deep look into it then you will find that the founder is not only the winner, it’s the team which wins.
Thousands and lakhs of employees, investors, family, friends, and mentors everyone deserve credit. Because it’s the support system that makes a company successful.
ENTREPRENEUR DON’T DEPEND ON GOVERNMENT
Entrepreneurs are those who don’t wait for the things to happen, they make things happen.
Most of the people are job oriented, they always think about a secure 9-5 job.
But entrepreneurs are totally different. They never depend on the government or anyone. They take their and societies responsibility and try to change things as required. They never settle themselves and struggle for constant growth.
COMMON OBSTACLE IN BECOMING AN ENTREPRENEUR
Obstacle and sacrifice are the prices that you paid to be successful.
If you want to be an entrepreneur then be ready for the hurdle. Here I point out some of them that may help you to be prepared for those.
- Worry about what to happen next.
- Fear of failure.
- Facing problem in the right team building.
- Hesitation in decision making.
- Try to be 100% ready before the act.
YOU HAVE TO WORK HARD
Commit yourself to work very hard, without this nothing is going to happen.
You have work for long hours with full dedication. You have to work more than your competitor or you will be out of business.
Mind it, working very hard is the key to huge success.
STARTUP CHANGING THE WORLD
It’s the time of technology. You can do anything you want from home by a single click.
Here I am going to describe some well-known and impactful name that rule the world.
INSTAGRAM-Instagram is a photo sharing app that uses filters to enhance photos.
PINTEREST-A pinboard that allows the user to share their image quickly and easily.
AIRBNB-A website that helps people by giving their extra space for rent.
SQUARE-Square provides a method for accepting credit card payment.
BETTER WORKS-A workplace recognition and rewards platform that lets businesses engage their staff through innovative rewards through local partners.
There are many students who don’t like the traditional method of education and believe in entrepreneurship.
They are those who prove every stat (age, experience, degree etc) wrong. Here our data of student entrepreneur.
Started a business during studies=36%
Graduates started a business because of unemployment=21%
Would like to work in a start-up=69%
FASTEST BILLION DOLLAR STARTUP
Billion-dollar valuation means a lot for any start-up. Every start-up wants to achieve that milestone but only few can. Here are the 5 fastest start-ups to achieve that milestone.
- Slack (1.25 yr.)
- Groupon (1.46 yr.)
- Akamai (1.58 yr.)
- Xiaomi (1.71 yr.)
- Calient (2.02 yr.)
MOST VALUABLE COMPANY IN THE WORLD
The race between the unicorns become interesting day by day. Amazon surpasses everyone to reach to the second spot with $1 trillion in valuations. Here it is.
According to a survey, less than 1% come from extremely rich or extremely poor background.
DID YOU KNOW?
Start-up with two founders is the most successful.
Dont’t let these stats scare you. Use these facts to be aware in your business.
Let us know which of these facts excites you the most in the comment bellow.
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