Entrepreneur

Entrepreneur Career Overview

Anyone with a great idea, a bit of perseverance, and the willingness to work hard for what can sometimes seem like very little pay can become an entrepreneur.

Entrepreneurship is on the rise in the United States, fueled in part by Americans' desire to turn their hobbies into a profession, and also the ease at which people can start their own businesses from home thanks to the Internet. There are currently more than 24 million small businesses running in the United States, according to federal statistics, and more than 13 million home-based businesses run by entrepreneurs generating income online.

While many entrepreneurs start companies as a way to explore their passions, take on a new challenge, or become their own boss, the reality of running a day-to-day small business can be daunting. More than half of all small business start-ups fail within the first five years, according to the U.S. Small Business Administration, and today's economic climate is making it especially hard for those just entering the professional world to find lasting success.

With that said, however, millions of Americans are quitting their 9 to 5 jobs and going into business for themselves, and the number of success stories about young entrepreneurs becoming overnight millionaires seem to multiply each year. For those with determination, business acumen, and a good idea, entrepreneurship can be an enticing career option.

Entrepreneur Training and Education

Today's entrepreneurs come from a wide array of educational backgrounds, from teenagers who have yet to graduate from high school to Ivy League graduates are just starting their first businesses. There is no one clear path to becoming an entrepreneur.

There are, however, some college-level classes that anyone aspiring to open their own business would be well advised to take at either a four-year university or community college, including courses on basic business management, accounting, and advertising. A master's in business administration (MBA) can also be a valuable tool for those hoping to open their own company. Most MBA programs require all students to take a series of courses on standard financial and managerial accounting, statistics, economics, strategy, management, marketing, finance, technology, and business law before graduation. Some programs may also offer a degree emphasis in entrepreneurship for those who take additional courses in small business management, negotiation, high technology, and global business.

Regardless of an entrepreneur's education background, it is imperative that he or she have a strong understanding of business, human resources, and accounting prior to starting a company, especially if they are hoping to hire employees in the future.

Entrepreneur Career and Salary Outlook

There is no limit to the amount of money an entrepreneur can make once his or her business becomes a success. Unfortunately, there is no minimum amount of pay an entrepreneur can make either—especially during the early years of starting a company—and many business owners may go months or years before turning a profit. Because of this, entrepreneurship is not suitable for the type of person who needs to see a monthly paycheck coming in, and it is important that those starting new companies have months or years worth of personal savings built up before going into business for the first time.

Overall job outlook for entrepreneurs hinges largely on the state of the national economy. Although the number of self-employed business owners increased by 11 percent from 1996 to 2006, according to the Bureau of Labor Statistics, that employment figure is expected to stay stagnate or even decrease in the coming years. Recent surveys by the National Federation of Independent Business show a declining number of small business owners in the first half of 2009.

Characteristics of Successful Entrepreneurs

It takes an extremely independent and competitive personality for one to become an entrepreneur, and those still deciding whether to start their own businesses should strongly consider whether they are willing to work the long hours and make the sacrifices necessary to get their business off the ground. Other characteristics strongly associated with successful entrepreneurs include self-reliance, perseverance, self-confidence, and good physical health. Surprisingly, recent studies of entrepreneurs have shown that a desire for money and need for power rank low on the attributes of today's entrepreneurs, despite the stereotypes associated with young businesspeople.

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