You don’t have to be a business genius to know that starting a business is a big risk. Even if you have all the tools necessary and do everything right, it could still be a huge failure. It’s like jumping into the deep end as a child.Entrepreneurs
But, don’t tell that to the current generation.
Every year, we see more and more entrepreneurs from all parts of the world. Estimates say that there are nearly 600 million entrepreneurs today, a staggering number for a potentially risky job.
At that number continues to grow and expand with each passing year.
More and more entrepreneurs coming into the world means that these budding businessmen and women are going to need direction, startup help, and plenty of resources.
While entrepreneurs see plenty of hope and a solid future in their business, there also lies a future in those willing to assist them.
Entrepreneurship and Education
It’s impossible to find the “right” path to becoming an entrepreneur. Bill Gates dropped out of college to start Microsoft. Jeff Bezos started out as an investment banker on Wall Street. Steve Jobs started Apple out of his own garage. Your neighbor Steve might have started the business with his college roommate after a night out.
Ask a million entrepreneurs and receive a million different answers. Some may have an MBA while others may have a degree in creative writing.
That might be because studying entrepreneurship wasn’t available during their time.
In 1990, there were 180 programs offered by universities in the US. Today? That number is well over 2000.
It shouldn’t surprise anyone that the #1 destination for entrepreneurs is the United States, thanks to its routinely strong economy and support for small businesses. In case you’re curious, the other top countries are Switzerland, Canada, the United Kingdom, Australia, Denmark, and Iceland.
Thanks to the rise of online learning, remote working, and the internet has also given birth to plenty of online course options that won’t cost you a fortune.
Udemy, Coursera, and even major universities offer courses for free or very little. For example, you can register for a course at the top college for entrepreneurship in the United States for free.
I Need Somebody, Help!
Even though billions of dollars are being thrown around to rising companies or startups, it’s a lot more than money venture funds and capitalists are helping with.
If you have ever watched Shark Tank, you might be lucky enough to see one of the Shark’s choose to invest in a business idea (although watching the terrible ideas is always funny).
Billionaire NBA team owner Mark Cuban will often talk about “once my team comes in and helps you…” A contestant isn’t just receiving money, they’re receiving help and guidance.
Investors are smart and as Warren Buffet once said, “Never invest in a business you can’t understand.”
Investors, venture funds, angel investors, and even your family want to make sure you know how to succeed. That’s why they’re also going to be investing in startup tools while paying people to come in to help you market your business, maintain intellectual property, and advise you on why becoming an LLC is the better choice for you.
Show me the Money
One of the biggest challenges for entrepreneurs is finding cash flow. After working through the nerves, taking the leap, and officially starting, all that’s left is to find some investors.
It’s certainly easier said than done, but it’s much easier now than it was ten years ago.
Venture capital growth has exploded over the last decade, not just to the rise of the popularity of Shark Tank.
According to Pitchbook-NVCA Venture Monitor, fundraising went from $33 billion on average between 2013-2017 to a whopping $55 billion in 2018. More and more venture funds are seeing potential in businesses and entrepreneurs, funding their early struggles for a return later.
The total amount invested in rising companies is also a shocker, totaling $131 billion in 2018. This is only the second time in history that number has topped a billion, with the other time being in 2000.
It’s a Competition
Even though more and more places are funding startup businesses, that also means there is plenty of competition to go around.
Banks, despite being the most popular place to head to a loan, are quite picky about when and to whom they give loans out. Big banks have a 27% approval rate while small banks don’t even make it to 50%.
Online lenders are becoming more and more popular, but still, don’t have an incredibly high approval rate.
With so many entrepreneurs popping up, more and more are going to banks, venture funds, online lenders, and more.
Despite these potential road bumps, there is still great growth potential for entrepreneurs that will carry over into the next decade and beyond.