Why Passion and Purpose are Vital to Business Success

Establishing a business is a difficult yet rewarding task. While there are many reasons why people establish their own businesses, not all of them are successful.

In this post, we'll look at the top reasons people start businesses and the evidence behind their success, as well as the incorrect reasons people start businesses and their failures.

In multiple surveys, the primary reason people establish a business is to pursue their passion while still having control over their work lives. This desire for independence and autonomy is frequently accompanied by a desire for financial gain and the possibility of a better income. Based on Guidant Financial research, 49% of small company owners began their enterprises to pursue their passion, 30% to be their own boss, and 26% for financial reasons.

Top reasons people start a business

1. Pursuing a passion: A CB Insights survey found that 22% of businesses fail due to a lack of enthusiasm or interest in the area they are entering. Pursuing a passion, on the other hand, can lead to a successful business since enthusiasm fuels motivation and dedication.
2. Seeking financial gain: For many people, establishing a business is motivated by the desire to make money. According to a Fit Small Business survey, 42% of small business owners started their company with less than $5,000 in the hopes of achieving financial independence. While financial gain is a legitimate incentive to establish a business, it should not be the primary reason. According to a survey conducted by Entrepreneur, organizations that emphasize income above consumers are 70% more likely to fail.
3. Pursuing flexibility: In order to have greater control over their work-life balance, many entrepreneurs launch their own enterprises. Based on the findings of a study made by the Global Entrepreneurship Monitor, 42% of entrepreneurs began their enterprises for this reason. Flexibility may lead to a better work-life balance and less stress, which can benefit a firm.

Wrong reasons people start a business

Following a trend: Establishing a business just for the sake of being fashionable or popular might result in failure. As per the research conducted by the University of Tennessee, firms that followed a trend were less likely to prosper than those that were distinctive.

1. Wanting to be your own boss: While the desire to be your own boss is alluring, it should not be the main motivation for beginning a firm. According to Bureau of Labor Statistics research, 20% of small enterprises fail during the first year, and 50% fail within the first five years. Being a boss entails extra responsibility, and it is critical to have the skills and expertise necessary to manage a successful firm.
2. Seeking work-life balance: While seeking flexibility might be a reasonable motive for launching a business, focusing solely on work-life balance can lead to failure. In line with the results of an investigation published in the Journal of Business Venturing, entrepreneurs who valued work-life balance were less likely to achieve development and success.
3. Establishing a business may be a rewarding experience, but it must be done for the correct reasons. Following a passion, pursuing financial gain, and being flexible may all contribute to a successful business, but following a trend, trying to be your own boss, and focusing solely on work-life balance all lead to failure. Entrepreneurs may make educated judgments when launching their own enterprises if they understand the evidence behind these factors.

Have you formed your own business? What inspired you? Leave your opinions in the comments section below.