Anurag Jain's Blog
Monday, June 28, 2004

Why do people start businesses?

Why bother about sleepness nights of starting a business. In fact, why bother even thinking about starting a business?

While talking about what it takes to be an entreprenur, the topic suggests that Entrepreneurs are guided by their own volition all the time. Not True! So, for a change lets not concentrate too much on the personal attributes of the potential entrepreneur. Rather, let me take you to the other end of the spectrum: Environmental (or external)factors.

A lot of times, the surroundings, and in general, 'externalities' are the key factors for a person's decision to start a business. In such cases, the person is not exactly 'looking forward' to starting a business. But the circumstances force him/her. Lets call such people Accidental Entrepreneurs (borrowed term). One such circumstantial factor is "Personal disloaction". Its something that a lot of people with sound background dont have to worry about. But if you see the history of major businesses around the world, personal disloaction has been the major motivating factor behind the start of many a great company.

Another example of environment turning an ordinary guy into an entrepreneur: dot-com era. I call Entrepreneurs from dot-com time .combabies (I am one, btw). Now, Can u attribute that activity to a sudden spurt in Entreprenurial spirit of IIT/IIM junta? No. It was the external stimuli that provided the opportunities, and people were just trying to grab a piece of the pie.

The take-away is that dont just concentrate on the 'internal' but also on 'external' while talking about what it takes to be an entrepreneur!

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