Being your own boss has some obvious perks, but some advantages of entrepreneurship are less evident. Spotcap, the fastest online credit platform, reveals the five best reasons for running your own business instead of working for a big company.
1. An entrepreneurial mind is a happy mind
Research has found that an entrepreneurial mind is a happy mind. According to a study by the United Nations University, individuals who swap regular employment for self-employment experience a significant increase in life satisfaction. The level of satisfaction even increases from the first year of self-employment to the second. Scientists agree that the average happiness of early stage entrepreneurs is higher than the happiness level of employees in big companies.
2. Small business funding gains big momentum
Funding for small businesses is more abundant than ever. Crowdfunding, angel investors, small business loans and governmental incentive programs enable entrepreneurship at an early stage. In the past, entrepreneurial ambitions all too often fell through due to a lack of financing. Today, the biggest challenge is choosing from the wide range of funding options. This leaves more time to focus on realizing ideas and developing an effective business strategy.
3. Accelerating innovation on a big level
Experimentation is imperative for small businesses focused on innovation, ideas and opportunities. A small company offers you the chance to shake things up. Lots of large corporations have lost their ability to innovate due to financial woes and inflexible management. The opposite applies for small companies. Governmental programs such as the Small Business Innovation Research (SBIR) initiative in the U.S. support small companies with funding for research and development.
4. Small businesses prove resilient in tough times
Entrepreneurship has experienced a real resurgence since the recent recession. More startups are being founded than ever before. At a time when many countries are struggling with economic uncertainty, small businesses have become a viable source for employment and an attractive alternative to corporate life. Take Spain for example: Entrepreneurs already generate the majority of the country’s new jobs. SMEs account for 65% of GDP and 80% of total employed people in Spain.
5. The changing image of entrepreneurship
The social prestige ascribed to entrepreneurs is huge. Larry Page, Richard Branson and Mark Zuckerberg are pioneers and idols for a whole generation. By comparison, corporate life has become less attractive. According to a current study by the London Business School, millennials long for greater flexibility, control and purpose at work. More and more people are seeking career satisfaction by initiating change instead of tolerating a brain numbing day job.