THE PURPOSE OF ENTREPRENEURSHIP: Why Did You Become An Entrepreneur?

purpose of entrepreneurship

Are you really an entrepreneur; a person who takes risks to create change? Or are you just one of those multitudes who hide under the title of an ‘entrepreneur’ to make ends meet?

So much Fuss about Entrepreneurship, Yet so Little Impact!

Why? Because many people going about with the title of an entrepreneur are not really in it to create change (significance); they are in it to make a living (survival). And when survival is the FOCUS, then mediocrity becomes the OUTCOME.

What we see are a bunch of businesses offering inferior goods and services yet charging exorbitant prices at the very expense of their stakeholders; customers, employees, suppliers and society in general. Their singular focus is on what they will get (profit) rather than on what they will give (value). If you went into business or your reason for starting a business is to make a living (survive), I suggest you re-evaluate your options and go back to the drawing board again.

Going into business simply because you want to make money (profit) is far too much a price to pay as an entrepreneur. I mean isn’t that what employees do; working nine-to-five in order to make ends meet? Why in the world would you choose to become an entrepreneur (be your own BOSS) just because you want to make a living when there is already a far more easy alternative for that –employment. If you are so much in need of money in order to make a living (survive), please go get a job and stop wasting your precious time posing as an entrepreneur!

Entrepreneurship is Beyond Survival

Survival (making a living) is not the goal of entrepreneurship but rather significance (making a difference). You would greatly be doing yourself a disservice if you became an entrepreneur simply to make ends meet. You are only short-changing yourself on the long run because entrepreneurship demands more work from you than an average nine-to-five job ever would.

Entrepreneurship is not the ideal choice for those who simply want to get by in life (survive); entrepreneurship is the ideal choice for those who want to live life according to their own terms and therefore will demand more from life in order to get what they really want (significance). Entrepreneurship is not for those who take what they are given in life and in self pity call it their fate, NO!

Entrepreneurship is for those who take what they are given in life and rather than accept it as their fate, go all out using what they have been given to get what they really want. Entrepreneurship is about using your life to do what you really love and truly care aboutpassion. It’s not about submitting to the status quo (enjoying comfortability); it’s about challenging the status quo (creating change). A true entrepreneur at their very core is a renegade; someone who is bent on creating change even though it means going against the norm. Does this sound like you?

If that description doesn’t go down with you well enough, perhaps it’s never too late for you to take a critical decision and make a u-turn rather than continue on this path of the less traveled. If your goal is to get rich quick as an entrepreneur rather than making a difference by doing what you love and truly care about, then you might also have to make a u-turn right now, back to the place where money and survival is the goal – employment.

 The Purpose of Entrepreneurship

Now I know you will be having a tough time swallowing all these hard stuff and probably wondering what the heck is he talking about? Saying to yourself; “shouldn’t we as entrepreneurs make a living or what?” Or put in another way; “shouldn’t we make money our goal, for crying out loud isn’t that why we are in business?” And here in lies the very reason why most entrepreneurs fail in business.

Focusing primarily on the end (output mentality) thinking only about the profit that is to be made forgetting that the end will only come as a result of diligence and commitment in the beginning backed with an unwavering discipline and persistence in following a process (input mentality). The simple truth is;

Money is the reward (product) NOT the goal (purpose) of entrepreneurship!

Entrepreneurship is much more than making money.  It is a calling. And like every other calling, it’s people-centered. It’s never about you, it’s all about others. It’s a calling to serve; it’s not about what you can accumulate (money/profit), it’s about what you can contribute (service/value).

Why do I say this? A calling is a strong urge to follow a particular career or do a particular type of work. The emphasis here is on the word ‘follow’ and to follow means to come after somebody or something. Meaning; you being an entrepreneur cannot choose yourself. You are chosen.

Entrepreneurship is not something you suddenly choose to do or pursue. It is something you are called to do – a pathway you are called to follow. In other words, you are not the ‘doer’; you are only an instrument. It’s not about accumulation; it’s about contribution. I know all these sounds a little strange, so I am going to explain further.

Here’s the deal; in all my humbling experience both as an entrepreneur and a business development consultant, I came to this singular conclusion; that an entrepreneur is simply a problem solver, no more, no less. This definition is owed to the fact that entrepreneurs are nothing if they are not meeting the needs of a particular group of people, known as the customers or target market as the case may be. Without these people, an entrepreneur would never have considered starting a business in the first place. Here is what I mean.

The Starting Point of Every Entrepreneur is Either;

  • The recognition of a need (problem) or
  • The conception of an idea (solution).

When an entrepreneur recognizes a need (problem), he goes in search of a solution (product or service) to meet that need. And when an entrepreneur conceives an idea for a product or service, he goes in search of a group of people who have a need for it.

In either case, the entrepreneur is always in search of something or going after something. Entrepreneurs do not exist for themselves or by themselves; they depend on something out there; something beyond them before they can birth whatever it is they carry.

They don’t do, they are being used. They don’t create, they are instruments for creation. They don’t start the process; they only complete what has been started. They see a need they didn’t create (problem) and find a way to fill it (solution).

In other words, an entrepreneur is but an instrument of nature; a servant to customers functioning as a problem solver to humanity. This is why entrepreneurship is a calling and not a money-driven venture (profit) but rather a value-adding venture (service). And like every other calling, it has its own reward.

For example; the reward of good leadership is committed followership; the reward of a good teacher is a knowledgeable and changed student; the reward of an inventor is the birth of an innovation and a missionary wins souls.

Likewise, the reward of a good entrepreneur is profit. In order words, the reward of an entrepreneur’s call to create a value-adding venture is profitability. This is where money comes into play. The money comes only after a value-adding venture had first been created.

So, going into business with the singular goal of making money is as simple as putting the cart before the horse. What most people fail to realize is that, money is a reward (an outcome/output/end result/product). It doesn’t just happen on its own; it is the result or product of a particular activity or input.

It never did or will never happen on its own, so making it the goal of going into business is choosing to fail from the very start. I say this, because the purpose of a business is not to make profit, but rather to deliver value to customers.

Businesses don’t Exist for Profits’ Sake; they Exist for Customers’ Sake

And these customers exist because they have a need or problem that needs to be solved. Indeed, anybody fit enough to solve these problems automatically becomes an entrepreneur.

Therefore, an entrepreneur is someone who has answered the call to solve a problem (input or activity) for a set of people (customers or target market) and gets money (result or outcome) as a reward for being able to accomplish all these things.

Understanding this chain-like relationship is what clearly makes entrepreneurship much more than making money. The goal of any entrepreneur going into business should not be what he will get (output or result) but rather what he will give (input or effort). This is because what he gets (money or outcome) is directly tied to how much he can and is prepared to give (effort or input).

Your capacity to make money as an entrepreneur is greatly dependent on how much problems you can solve or solutions you can proffer to customers’ needs or problems. So why focus on the end, when the end is unattainable without the beginning? Your focus as an entrepreneur should revolve around the problems you can solve for people.

How well am I solving this problem? How many people out there have this kind of problem and need my solution? How may I reach them? Who else is out there solving this same problem for people too? How may I do better than this other person? These and many more customer focused questions are what an entrepreneur should go into business to answer.

You as an Entrepreneur have but ONE Task;

  • To either solve one problem for so many people or

  • Solve many problems for a few people.

This is what your focus should be, because your reward (money) is tied to this. The more people you solve one problem for, the more money (reward) you stand to get and the more problems you solve for a few set of people; the more money (reward) you also stand to get.

Looking at several examples of successful entrepreneurs all over the world reveals the fact that at the heart of entrepreneurship is the provision of solutions to the day-to-day needs of society. Ask yourself why Richard Branson’s Virgin has become so successful? Have you ever wondered why Microsoft remains the world’s leading computer software company? All these case studies exemplify the true essence of entrepreneurship –providing solutions to the problems and needs of humanity!

Thanks for reading!

So why did you become an entrepreneur?

Kindly share your thoughts and comments below, I’m sure someone out there will find your story useful.

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Comments

  1. says

    Hi Tito,

    Nice post! Exactly the goal for entreprenuerus should be to serve others, help others, make a difference in other people’s lives. If we can solve a problem that people have, then money would come. Creating something that is of value to people is the key to the success. Also, it should be something or a cause that we really believe in and passionate about. Thanks for sharing my friend :)

  2. says

    Hello Dia,
    How nice of you to stop by not minding the holidays. I thought I was the only one who still did some blogging during the holidays :)

    Thanks for your comment. Passion indeed must be a key ingredient for achieving success in business. If you ask me, I would say it’s at the foundation of entrepreneurship, without it, every other thing is just work. Passion gives our business a reason for being besides making profits.

  3. says

    I love your take and passion on this subject. It’s very clear, as is the passion in which you communicate it. I share your view on entrepreneurialship in the idea that it’s about giving value to people, inevitably. With this, comes rewards that can’t be achieved in any other format of work.
    Being an entrepreneur is a mindset, not a just a job type. I work in corporate america, but with a very unique approach – one of an entrepreneur. With this, I have to be of the best – but doing so means that I earn more than my peers, have more control over my schedule, and am free to be as creative as possible – because that’s what allows me to be effective.
    Obtaining and maintaining this type of status is similar to creating and maintaining a business. You have to have a plan, a purpose and be able to execute effectively.

    Tito – this is an area that you’ll certainly excel in. You’re a student of the game (life) and you have a passion for the people. That’s a wonderful combo to have. For that, I’m honored to have you as a friend.
    Peace.

    • says

      Thank you so much buddy for your kind words. In fact, I know your days in corporate America is numbered. You have the entrepreneurial blood running all over your body. Without any doubt whatsoever, I can say bold that you are meant for the world of business. You are on the right path, just hang in there and make the necessary turn when you see the light!

  4. says

    Thanks for the encouragement Tito. You’re right – my corporate days are numbered. I hope this to be my last year in the corporate world. It’s time to get on my own two feet. I’m a hustler!

  5. Elise says

    Wow Tito, I have a lot of catching up to do on your blog!

    Great article. Honestly, I’m taking a entrepreneurship program at school right now and I should forward to article to all of my classmates because I know that many of them are not there for the right reasons. A lot of them have the “money” idea set in their minds… and a lot of them are just downright lazy. They joke constantly about how we’ll all be millionaires in 10 years. Ha!

    To answer your question, I became an entrepreneur because I have a hard time answering to anyone else. I’ve also been independent that way. Also, building your own business and being able to help people in your own terms is reward all in itself. It’s not just about money. It’s about the feeling!

    • says

      Happy New Year Elise!

      Thanks for taking out the time to catch up with all that has happened so fast during the holidays. I didn’t intend to do this much behind your back, :) thanks to the internet for making it possible not to miss out on anything useful.

      The main reason entrepreneurs fail in business is because of this mindset of putting money ahead of a genuine purpose greater than money. They ironically start wondering why they fail later on, never stopping to ask for once what caused the failure. The truth is so simple but yet unknown to many, you cannot get money until you follow your passion. The money is second place, following your passion or purpose is first place. The value you add to people that makes them give you money comes from your passion or purpose. Without adding that value, consistently, the money a lot of entrepreneurs head out for will always be an illusion.

      Thanks so much for thinking about sending this also to your friends in school. I really do appreciate your thoughtfulness.

      Becoming an entrepreneur because you want to answer to yourself only is good. But as always, you must look beyond just you and find how that passion of being independent can translate into more value for your target market. As I always preach, add some usefulness to your uniqueness. Your reason is swell for being an entrepreneur, turn that reason to a value for the customers.

      And yes, you’ve nailed it, it’s the feeling -passion that makes all the difference in business, not money! How passionate you are about your cause will determine how much money you are able to attract as a result of using your passion for the benefit of others.

  6. Troy Ammerman says

    I actually not an Entrepreneur but I probably want to become an entrepreneur that would help me to earn money. In the first place I know that being an entrepreneur is not easy, you must dedicated to work with it. Thanks for thr following information I learn a lot.

  7. michael says

    Hi Tito,
    You have been a great mentor to me when it comes to entrepreneurship.i love every post but needed a face to face conversation with you so as to get more inspirations.

    • says

      Hello Michael,

      Thank you for the nice words. You can ask any further question on business and entrepreneurship via email. Use the contact us page and will do my best to provide necessary support.

  8. says

    Philips, this is very true and i am going to speak to university students on why choosing to be an entrepreneur, i got a lot of insights here thank you so much. and keep it up.

      • KS says

        Wow!

        This has helped me reevaluate my motivations. I used to be one of those people who would read a book about entrepreneurship and why it’s so ‘cool’ and all that, but failed to see the main point of this article.

        I think the word has been abused a lot. We should start addressing them as ‘problem-solvers’ rather than some swanky label ‘entrepreneur’.

        I think I will turn from this path now. I will return when I genuinely have an angle to solve problems.

        Thanks again!!

      • Mary Rose G. says

        Hi there, i would like to ask about some rewards… You state in your article that money is not a reward.. What about the satisfaction and independence??

        • says

          Hello Mary,

          Independence and satisfaction are also valid rewards that come from entrepreneurship. You can have as much rewards that you want from your entrepreneurial journey so long as you put the VALUE you want to deliver first!

  9. HALIM says

    Hello tito
    Greetings from me, I accidentally read your blog and I’m interested in the contents. I hope you can give more inspiration to us. happened to me as a student at a university. My concentration is entrepreneurship. I am again looking for ideas on entrepreneurship research. or sites that I can access to get information about entrepreneurship. I hope you can help me.
    you see the light!

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  11. Tunde says

    nice post sir, this is my first time of reading your post and I will never forget what I have Learn today from this. But one more thing sir, u said that the more one solve other people problems the more reward it get. My questions is this how can someone know other peoples problems?

    • says

      Hi Tunde,

      Thanks for your comment.

      Everyone has a problem or many problems that they are in need of solutions for. Those are the opportunities entrepreneurs see and seize to create a business around.

      No one can solve all the problems for people, so you have to start by identifying the problems you currently have the capacity to solve for people.

      You said you don’t know how to identify people’s problem, it’s quite simple, look around you and ask yourself the following questions;

      1). What are the things people spend their money on?
      2). What are the things people spend their time doing?

      If you look closely enough, you will discover the problems people have are what they spend their time and money on. So your task is to identify the particular set of problems that you have the capacity to solve. So that they can start spending their money and time to get the solution from you.

      Understood?

Trackbacks

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