Entrepreneurs – Who Are they and Why They Are So Important

For 37 years of my working life, I have had the great fortune of working alongside entrepreneurs. Men and women who have, often more than once, risked everything they own to create and grow businesses into something meaningful. Meaningful to them, to their team members, to their customers and suppliers, and critically important to their communities and to our country overall.

Small businesses are the engine of the U.S. economy. They account for between 60% and 70% of new job creation, drive innovation and competition through novel ideas that keep incumbents on their toes, and ultimately benefit both markets and consumers. During economic downturns, small businesses often lead the recovery. Overall, smaller firms account for roughly 44% of all U.S. economic activity.

Entrepreneurs and their companies also represent the essence of capitalism, and the spirit on which our country was founded. The opportunity and the freedom to pursue an idea and turn a vision into reality.

Of course, starting or buying a company isn’t for everyone. First, it comes with tremendous responsibility. Just ask any owner who has had to make payroll what that feels like. Second, it is inherently risky. According to data from the U.S. Bureau of Labor Statistics, roughly 20 - 24% of new companies fail in their first year, and about 50% fail by year five. Those are tough odds.

I understand these challenges personally. In 1987, I started my own company as a supplier to the marine industry. Three years later, I was one of the companies that didn’t make it. But what an education it was. My respect for what it takes, and for the people who are willing to try, grew exponentially.

So, what does it take to be a successful entrepreneur? What mindsets and behaviors allow some to beat the odds? A quick online search will turn up long lists of traits, but in my experience, these are the critical few:

Risk tolerance. Entrepreneurs are wired differently in this area more than any other. That doesn’t mean they don’t think about risk, or they don’t have their share of sleepless nights. They do.  But they are willing to put it all on the line to see their companies succeed, sometimes more than once.

Innovative thinking. Entrepreneurs prefer to think outside the box. They are only willing to follow the “typical” way of doing things if they are convinced it truly is the best way. Otherwise, they instinctively look for a better approach.

Persistence. Relentless may be the better word. Entrepreneurs can be single-minded and intensely focused. A new customer, a new product, a new way of operating. When something doesn’t work, they don’t quit. They ask, what will? And keep going.

Decisiveness. Entrepreneurs are decision-makers. They seek as much information as possible, but they won’t let incomplete data stall progress. They understand that waiting too long can kill momentum, and they would rather move forward and adjust as clarity improves.

Flexibility. Things change. The idea doesn’t work as planned. The market reacts differently. A key component becomes unavailable. No problem. Entrepreneurs adapt, adjust, and try again.

Confident. They have an unshakable belief that what they are doing is the right thing. This helps them be resilient, and increases their odds for success.

Are you one of these people? Are you more focused on what’s possible than on the risk of failure? Are you determined to see your idea through?

If so - Thank You! I appreciate you, I celebrate you, and I support you. Our country would not be what it is without you. And I have had the career I enjoy because of you.