Necessity entrepreneurs are the most likely to be successful in their endeavors. They know what they need and how to get it, whether that’s money or a product.
A necessity entrepreneur is someone who has a product or service that is necessary and they will not be able to live without. Necessity entrepreneurs often have a hard time finding funding because it is difficult for investors to see the potential of their business.
Small Business Labs’ Steve King had a great article about necessity entrepreneurs on Wednesday. Steve quotes UC Santa Cruz professor Robert Fairlie:
Fairlie is a prominent entrepreneurship researcher and the main author of the Kauffman Index of Entrepreneurial Activity. His research indicates that self-employment rises during times of economic hardship and levels off during periods of prosperity. This is due to the need for entrepreneurs to return to conventional work.
So there isn’t much of a surprise here. People establish companies because they don’t have any other options. Several million people have lost their jobs as a result of the present crisis, and unemployment is at its worst level in decades (in Eugene, Ore., our local daily reported yesterday that unemployment is above 14 percent). Not only are individuals being laid off, but a large number of people are already searching for work.
Sure, that all seems terrible, but Steve also included some positive news in his post:
The good news for necessity entrepreneurs is that the cost of establishing a small company, particularly a home-based business, is cheaper than it has ever been. Technology has grown more affordable, and in some instances, completely free.
While the majority of necessity entrepreneurs will return to conventional employment, our study shows that an increasing proportion of displaced individuals choose self-employment. These people’s motivations for choosing self-employment are similar to those of other small company entrepreneurs. They prefer working for themselves for a variety of reasons, including employment and work flexibility, business enthusiasm, and work/life balance.
I also believe it is important to recognize that many companies are driven by more than just ideas, enthusiasm, and entrepreneurial spirit. You may also wonder if you have a choice. And if you don’t, you’ll have to deal with the consequences.
Or, who knows, maybe you’ll even like it.
The opportunity entrepreneurs examples is a term that has been coined to describe someone who creates an opportunity for themselves. These opportunities can be anything from creating your own business, to starting a new job.
Frequently Asked Questions
What is a necessity driven entrepreneur?
A necessity driven entrepreneur is someone who has a need for their product or service and then creates that product or service to meet that need.
What is necessary entrepreneur?
An entrepreneur is someone who organizes and manages a business.
What is a necessity entrepreneur and how is this connected to population growth?
A necessity entrepreneur is someone who starts a business that helps to meet the needs of an increasing population.
Related Tags
- necessity entrepreneur vs opportunity entrepreneur
- necessity entrepreneur example
- opportunity entrepreneurship
- what makes a country entrepreneurial
- opportunity-based entrepreneurship theory
