5 Reasons Why People Become Entrepreneurs, According to 200+ Entrepreneurs

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"Why do people become entrepreneurs?"

I don't think there's a single business owner who would answer "Eh, I'm not sure. I certainly don't know why I did," if you asked them that question. There's always a reason behind an entrepreneurial venture - and aspiring business owners should know why their potential peers in the entrepreneurship community decided to go out on their own.

That's why we pulled data from our recent State of Entrepreneurship report and connected with business owners for some perspective on why they got in the game. Check out what we found!

Why do people become entrepreneurs?

1. They want to be their own boss or escape the traditional 9-5.

According to our research, the prospect of being your own boss, ditching the conventional nine-to-five grind, and gaining professional autonomy was the most attractive rationale for pursuing entrepreneurship - 45% of respondents cited it as the main reason they started their businesses.

2. They're passionate about their business ideas.

Entrepreneurs tend to be pretty passionate people (I've never seen a monotone, apathetic Shark Tank pitch), so it makes sense that passion would be one of the more popular motivations behind entrepreneurial ventures.

21% of our respondents cited it as the reason they started their businesses, making it the second most prominent reason entrepreneurs decide to be all entrepreneurial.

3. They want to increase their income.

I'm going to let you in on some revelatory insight you can only get here on The HubSpot Sales Blog. Are you ready?

Business owners generally want their businesses to make money.

Shocking, I know.

With that said, our research indicates that turning a profit and getting rich aren't the main priorities for most entrepreneurs. Only 16% of respondents cited increasing income as the primary reason they started their businesses.

4. They have a major life transition.

Life is unpredictable, dude. You never know what's around the bend. At any point, you could hit a major life transition - like a layoff, starting a family, or retiring. When that happens, you might reevaluate your priorities and look for new pursuits.

According to our research, that's what happens for roughly 9% of entrepreneurs. Those respondents decided to start their businesses after hitting milestones like the ones I just listed.

5. They identify a unique opportunity.

Some entrepreneurs decide to start their businesses after noticing a unique opportunity, like a market gap. They see a chance to lock in on something novel and interesting - and they take it. According to our research, roughly 5% of entrepreneurs consider that their primary motivation.

Why do entrepreneurs start businesses?

We reached out to some entrepreneurs to see what prompted them to start their own businesses. Here's what they had to say.

1. "I wanted to build success for myself and my clients simultaneously."

Heather Wilson, Founder of The Brand Strategy Tank, says, "I became a small-business owner because I wanted to build success for myself and my clients simultaneously. Frankly, I was tired of businesses reaping what I was sowing with a fraction of the rewards, professionally and personally. I get to choose my clients and focus on work that is meaningful and pave the way in a niche that very few others are honing in on. It's exciting, and I greet the day enthusiastically to build on this through education and client work.

"I wish I'd known how little the people who know me would support my endeavors. Taking a leap without a net is scary and exhilarating. While you may have experience and qualifications, many will sit back and watch versus jump in and recommend and refer you. The saying that a client will become a friend before a friend will become a client rings true. Lead by example, keep at it, and let the work speak for itself."

2. "I wanted to create a business that empowers and amplifies the voices of those who often go unheard and unvalidated."

Bhavik R. Shah, Founder of Bhavik R. Shah LLC, says, "More than anything, I wanted to create a business that empowers and amplifies the voices of those who often go unheard and unvalidated. My primary goal in establishing a mental health and DEIB business was to demonstrate to organizations that transformation is achievable through a blend of strategy and empathy.

"We frequently hear about the challenges of integrating this work into business operations, yet we often overlook the application of change management principles that can lead to positive outcomes such as engaged employees, enhanced performance, and reduced attrition.

"One thing I wish I had known before starting my business is that promoting yourself and showcasing your expertise is a full-time job, even in casual conversations. Being an entrepreneur involves understanding when and where to highlight your work and creating impactful connections with partners who align with your values."

3. "I wanted freedom."

Kristin Bartholomew, Executive Coach & Leadership Development Specialist at KMB Coaching, says, "When I decided to embark on my entrepreneurial journey, I had one thing in mind: FREEDOM. Freedom to create the life I wanted, both inside and outside of my home. Freedom to use my talents and abilities to contribute to communities I believed in. Freedom to build a business I was proud of, could expand on, and that had limitless opportunities.

"Before I started my own business, I underestimated some of the skills required to build a thriving company - namely, being your own salesperson. However, through research and support, I have learned and mastered the skills required for success and have absolutely zero regrets.

"If you are looking for ultimate freedom in your content and skills, relationships, and finances, then becoming a self-sustained entrepreneur is the way to go!"

4. "I was passionate about the sector I was in, but I felt like I could do it better in my own business."

Matt Collingwood, Managing Director & Founder of VIQU, says, "I wanted to become an entrepreneur because I was passionate about the sector I was in, but I felt like I could do it better in my own business. I felt constrained being in a corporate environment and like my ideas weren't being listened to. So, I wanted to become an entrepreneur so that I could bring some of those ideas to life!

"Having worked in the corporate world for 20 years, I'd never been in an environment where there wasn't a department or someone responsible for areas such as marketing, finance, IT support, etc. So, starting my own business was a shock. Suddenly, I was responsible for all these different tasks and processes that I didn't fully understand yet.

"So, I wish someone had told me to spend more time with people in those critical areas before I became an entrepreneur. If I had gained more exposure to how those departments functioned, what the most important tasks were, etc., I think starting my path in entrepreneurship wouldn't have been so rocky and unstable in the very beginning.

"Luckily, I quickly surrounded myself with excellent suppliers who could support the business, leaving me time to grow our clients and ultimately help the business to succeed."

5. "I got tired of the nine-to-five grind and wanted to create something of my own."

Peter Juhasz, Founder of Pluxa Property, says, "I've always been a do-it-yourself kind of person. I got tired of the nine-to-five grind and wanted to create something of my own. Being an entrepreneur means you're the captain of your ship, making decisions that directly impact your success. Of course, there are ups and downs, and many days of self-doubt, but the potential rewards are huge. And once you start entrepreneurship, you realize that it's too tough to go back to the nine-to-five.

"No doubt, you will be working way more than you had to at a job. However, you will be in control of your life. Each hour you put in will go towards building something that is yours, which will always give you that satisfaction.

"If I could go back, I'd tell myself to dive deep into the financial side of things. Numbers aren't my strong suit, but they're the backbone of any business. Understanding cash flow, budgeting, and taxes can save you a world of headaches and fraud. Also, building a strong network from the get-go is a must. You never know who might be your next big client or business partner. So, if you are an introvert, buckle up for lots of conversations."

6. "I've had a lifelong passion for innovation, a fascination with the future, and a desire to make a meaningful impact in the world."

Allan Wille, CEO & Co-Founder of Klipfolio, says, "Becoming an entrepreneur stemmed from a lifelong passion for innovation, a fascination with the future, and a desire to make a meaningful impact in the world. Early on, it was clear there was no effective analytics solution for small- and medium-sized business users.

"They were swimming in data but lacked the tools to make sense of it. That's where the idea for my company originated. We saw an opportunity to create a platform that would empower these businesses to understand, visualize, and effectively use their data.

"What I wish I knew before starting out is the sheer importance of resilience. The journey is filled with unexpected challenges that require not just technical know-how but the tenacity and social support to push through obstacles.

"It's not enough to simply have a great idea; you have to be an unwavering advocate for it, continually driving the vision forward even when the path isn't clear. Knowing this early on would have prepared me better for the roller-coaster ride that comes with being an entrepreneur."

Entrepreneurship isn't easy, so if you pursue it, you should have a good reason why. That'll be your North Star - the wellspring of motivation that moves your business forward. Hopefully, this post gives you some valuable context on the "why" behind most entrepreneurs' endeavors.

Topics:Entrepreneurship

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