# General Business Category > Entrepreneurship and Business Management Forum > [Question] What stops you from starting your own business?

## BusFact

I'm curious as to what the reasons are for you not having started your own business. For those that have started one, what are your reasons for not having started another one?

Is it a lack of finance; a lack of a suitable business idea; not enough time; not knowing where to start; not understanding the bureaucracy and taxes required; too much work involved; the fear of failure or ..... what?

So often we hear talk about how important the entrepreneurs are for creating jobs, so why aren't there more of them? Everyone who reckons they stand a chance seems to want to look for a job. I can understand the perceived safety of that option, but why not both a job and a business on the side?

I look forward to some of your insights.

----------


## HR Solutions

Ask yourself - if one of your staff opened up a business similar to yours or not even similar - How would you feel and what would you question for example ?

----------


## BusFact

Opening a business similar to mine would obviously be a conflict of interest. That would be problematic. However if they fixed cars or built websites over the weekend, why would that be of any concern to me as a business owner?

In any event that's addressing the perspective of an employer. I'm wondering why the prospective business owner is not starting something up. How often do we hear of people wanting to start their own business, but so little seems to happen. Why is this so?

----------


## HR Solutions

I do think that a lot of business owners have interests in other businesses - a lot of it and how much you do depends on finance, but yes I agree if you are an entrepeneur why stop with one business  :Wink:   We could all dream of all being "Dragons" whereby you invest money in business whereby they generate themselves with minimal input

----------


## wynn

If you have followed the links on the 'dragons den' thread Peter Carruthers recommends starting any business as a sole prop working from your garage, spare bedroom or lounge until you know that the business idea is working and going to grow before going the whole legal, banking account and registering pty's etc. because if it doesn't work to shut it down is a cinch unlike de-registration etc. so that may be why none of the thousands of start ups are not visible to a researcher.

The other point that may answer your question is that all of the tiny one or two man businesses, even those in the townships, we talking spazas, hairdressers. back yard mechanics etc here, are not interested in registering because they see the Government as just interfering and preventing them from carrying on making a living because of all the red tape and hoops to jump through.

Vat threshold R1.5Mil most of these small businesses can only dream of doing that kind of turnover in ten years never mind one (R100,000 PM turnover will take 15 months to reach threshold and how many do that PM)so why bother registering, just pay the effen VAT when you purchase any goods and don't worry about claiming the pittance input credit.

----------


## BusFact

@Wynn - Dead right. It makes perfect sense to be a sole prop and not jump through bureaucratic hoops that keep moving. The people you are referring to are the ones that *have* done it. I'm not really concerned with how they have done it or structured their business. I'm happy for them and proud of them for just doing it. I would like to know about all those people who have *not* done it. 

I'd really like to hear from those that aren't running their own business, and would like to know: Why not? What holds them back from doing so?

----------


## HR Solutions

> I'd really like to hear from those that aren't running their own business, and would like to know: Why not? What holds them back from doing so?



Good question

----------


## adrianh

> I'm curious as to what the reasons are for you not having started your own business. For those that have started one, what are your reasons for not having started another one?
> 
> Is it a lack of finance; a lack of a suitable business idea; not enough time; not knowing where to start; not understanding the bureaucracy and taxes required; too much work involved; the fear of failure or ..... what?
> 
> So often we hear talk about how important the entrepreneurs are for creating jobs, so why aren't there more of them? Everyone who reckons they stand a chance seems to want to look for a job. I can understand the perceived safety of that option, but why not both a job and a business on the side?
> 
> I look forward to some of your insights.


I can think of numerous businesses that one could start. The reaon that I haven't started anything other that the one that I am trying to develop right now is that I do not have the administative / management / systems skills. I find it difficult enough to try and keep tabs on my own silly litle business let alone 3 more.

People are very strange. Everybody want to make lots of money but none want to work / struggle / learn / risk / or do anything too inconvenient to get that money. Many people see having their own business in the same way they see going on a diet to lose weight. You se, people want to lose weight by taking a pill or skipping a meal but it shoudn't be to inconvenient. 99% of people can lose weight by eatng properly and getting exercise and by the same token many people can run their own little businesses....they don't because the inconvenience isn't worth the bother.

----------


## Justloadit

> People are very strange. Everybody want to make lots of money but none want to work / struggle / learn / risk / or do anything too inconvenient to get that money.


I can not agree more on this statement.
It is a difficult statement to tell customers, that the "buck stops here", I will fix the problem. It is so much easier to say "speak to my manager" and smile at the customer.

It takes great effort to make a successful business, it needs continuous sacrifice and attention, and never mind the many months that there is no income, because any money that does come in goes into keeping the business alive.

What about no public holidays, or limited leave? 
What about being the person plugging in the days that staff do not pitch up?
and many more that I can not think of right now

----------


## tec0

Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step

----------


## adrianh

> Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step


Rubbish, it is the same as saying that you can't practice for the Argus because the bank won't give you R50k to buy a state of the art racing bicycle. Building a business is no different to practicing to run a race.....you simply get started and you keep on going, hell or high water.

----------


## HR Solutions

> Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step



That is absolute rubbish.

----------


## Houses4Rent

> Vat threshold R1.5Mil most of these small businesses can only dream of doing that kind of turnover.


Is VAT threshold now R1.5Mio? I just checked SARS and it says:
It is mandatory for a person to register for VAT if the taxable supplies made or to be made is, in excess of R1 million in any consecutive twelve month period. 

Anyway, I see one of the major stumbling blocks is our labour law...

----------


## adrianh

> I can not agree more on this statement.
> It is a difficult statement to tell customers, that the "buck stops here", I will fix the problem. It is so much easier to say "speak to my manager" and smile at the customer.
> 
> It takes great effort to make a successful business, it needs continuous sacrifice and attention, and never mind the many months that there is no income, because any money that does come in goes into keeping the business alive.
> 
> What about no public holidays, or limited leave? 
> What about being the person plugging in the days that staff do not pitch up?
> and many more that I can not think of right now


I was at work last night till 19:30. Got home, ate and continued reading up on solving a particular problem. Up at 8 this morning, off to work, then to a client, then to a supplier, then to deliver a order, home, sleep for 3 hours. I am now (Saturday 18:30) back at work casting parts for a Wednesday morning deadline. I will probably leave here in an hour or two only to return tomorrow and spend the day here as well.

The staff on the other hand left at 16:30 on Friday. Some are taking Monday off. The rest will be here on Monday then Wednesday.....They don't care whether the Wednesday morning deadline is met because the buck doesn't stop with them.

Like we said; everybody wants lots of money provided that getting it isn't too inconvenient.

----------


## BusFact

> I can think of numerous businesses that one could start. The reaon that I haven't started anything other that the one that I am trying to develop right now is that I do not have the administative / management / systems skills. I find it difficult enough to try and keep tabs on my own silly litle business let alone 3 more.


I'm surprised you say that. Based on reading your posts over the years, you seem to have a reasonable grasp of the admin and management side of things. Are you perhaps referring to the time required to sort out all the random stuff that goes wrong each day, or are you referring to the weekly/monthly grind of payrolls, tax returns, accounts, etc? 

Do the other numerous business ideas have less profit potential than your existing business?




> People are very strange. Everybody want to make lots of money but none want to work / struggle / learn / risk / or do anything too inconvenient to get that money. Many people see having their own business in the same way they see going on a diet to lose weight. You se, people want to lose weight by taking a pill or skipping a meal but it shoudn't be to inconvenient. 99% of people can lose weight by eatng properly and getting exercise and by the same token many people can run their own little businesses....they don't because the inconvenience isn't worth the bother.


Now this one I like: "Its too inconvenient". They like the idea, but not the reality. Thanks for the insight.

----------


## BusFact

> Capital... Don't have money then don't expect to make money. A start-up in this day and age is scary... Banks are not as forth coming as they tend to advertize and our economy is chewing on another fifty-five Billion Rand demand from Eskom not to mention basic infrastructures are failing. Yet there is money to be made but outside South Africa. Friends of mine are doing well in Botswana, Mozambique Madagascar and Mauritius. Others established themselves in Canada, United Kingdom America and Australia. America especially have a big demand for Electricians, Boiler makers and so on. So if you got the skill setting up a business abroad may well be a good next step


I think you are right, in that this is indeed what stops many people from starting their business. They want to start with the "finished product". A nice factory with offices, machinery, stock and a team of sales reps. That of course does require money.

But surely there are ways to start almost any small business idea with very little capital. It just means it takes much longer to get to the "finished product".

Then you go on about skills required overseas. This sounds more like jobs, rather than businesses?

----------


## BusFact

> Anyway, I see one of the major stumbling blocks is our labour law...


I agree its one of the stumbling blocks to increasing the size of a business, but is it really stopping someone starting a small business? Often the small business would be just the business owner - no labour law involved.

----------


## wynn

> Often the small business would be just the business owner - no labour law involved.


Aah! now we reach the kernel of truth behind what you are asking, AdrianH has said it as well

As a solopreneur you have to do everything yourself even if it is inconvenient at the time (Big order to get out, Vat returns to be calculated, public holidays in between)

Then the majority of tentative small business people ask the wrong people the wrong questions, their accountant and lawyer says they must register this and that and do that, then they look at the labour law because they fancy employing someone to do the grind, then provisional tax before they have broken even etc., so there you have it, people are not prepared to take a chance with the threat of big brother looming like a big ogre over their heads.

----------


## BusFact

That's a fair point. The daunting legislation and administrative requirements is probably a big reason for many not starting a business.

I'm not convinced that scares off everyone though. Surely those who are convinced they are sitting on a profit goldmine aren't worried about taxes and stuff that an accountant can do? Won't that just be paid out of profits?  :Smile:

----------


## BusFact

Ok, so far we haven't had anyone mention why they haven't started their first business, but I suppose most people who reply on this forum tend to be existing business owners.

Those that have replied seem to indicate that there is so much daily management involved that they don't have the time.

What would stop you then from outsourcing the daily management? Is this simply not practical?

----------


## dellatjie

I think many people are scared to start a new business, as they will not have guaranteed income and stability for quite a while before the business will start taking of... if it does take off.. And even though you may not require a lot of capital, you need some form of backup to cover you in this time during which you will be building up the business, which everyone does not have.

----------


## Dave A

The real problem is most people aren't prepared to get out of their comfort zone.

----------

HR Solutions (23-Jun-15)

----------


## adrianh

I recently radically changed tack this week. The business was always one entity and its now been split into two. You see, we have a business, HC that does laser cutting, CNC machining and product development. Then we have a brand, SC, which is aimed at a particular market. SC is isolated in the sense that the staff that are employed to manufacture for the brand can be ring-fenced and dedicated to that brand.

So, I had a long talk to the SC people and explained to them in concise financial terms that they do not make a profit for me, they barely cover their salaries, and that if I were to shut that operation down I would be better off, not only financially but also not having to be their mommy, daddy, social worker etc. I put the ball in their court and gave them a measure of free reign. I give them the customer orders, the ability to sell via BoB & Ebay and also all the support that they need. For the rest of it they are on their own. The brand, SC, is now run as an independent business unit with managerial & financial oversight. I no longer pay their salaries, they do. I made it clear that I couldn't care less whether they make R0 or R100K each provided that all costs are covered and I get my fair share of the profits. I made it clear that I really don't care, they can hire and fire and beat one another up, its up to them.

The guys used to sit and talk rubbish and bicker amongst themselves all the time. There was a bit of animosity between them before as well. Some were always late and they would not work overtime. The situation is totally different now, they work their asses off and no longer fight amongst themselves. I think that knowing that the boss isn't going to pay their salaries makes a huge difference. They asked to be given their own remote so that they can start to work earlier in the morning...(now that is a first) The vibe at the office has made a 180 degree turn. I don't walk around checking on them and stressing about their salaries, I now concentrate on developing my half of the business.

The bottom line is that they now understand that I am better off without them and that side of the business at the moment and that I have no qualms about shutting it down if it doesn't become very profitable very quickly. Also that I am able to earn more money than their combined salaries if I simply work alone. They have been empowered and are in control of their own financial destinies. 

They wanted a pay hike....they can earn it themselves!

----------

Blurock (23-Jun-15), BusFact (23-Jun-15), DanE (23-Jun-15), vieome (23-Jun-15)

----------


## IanF

Adrian
That is great let us know how it goes. Staff management is a problem for me as  well so any insight is welcome.

----------


## HR Solutions

That is such a fantastic way of going about it Adrian.  Bottom line is they get out what they put into it - well done.  There are too many people out there that want their piece of the pie but don't want to contribute to making it happen.

----------


## BusFact

Totally derailing the thread Adrian  :Smile:  ... but worth it. Thanks for that post.

Haven't you essentially done the entrepreneurial "thing"? Set up the business, empowered the staff, delegated most tasks and moved on to the next job. I think its brilliant. Now why aren't more of us doing that?

----------


## BusFact

> The real problem is most people aren't prepared to get out of their comfort zone.


Nicely summed up. I agree.

If that's their main reason, aren't there lots of business ideas that could be outsourced? That doesn't require a shift out of a comfort zone. Which leads to my previous question:




> What would stop you then from outsourcing the daily management? Is this simply not practical?

----------


## HR Solutions

> Totally derailing the thread Adrian


Not sure if Adrian is derailing the thread because he is offering a way to start your own business as the thread heading.  It also answers a question why some people don't start their own bussiness - because they might be scared of paying salaries/wages and overhead costs.  This is a great way for people to start their own business.

----------


## Blurock

> They have been empowered and are in control of their own financial destinies. 
> 
> They wanted a pay hike....they can earn it themselves!


That sums it up. Most employees are like children; the boss thinks for them, the boss takes responsibility, the boss picks up the pieces. The more we try to control people, the less productive they become. Take Google and Microsoft as examples: no dress code, flexible work hours, informal surroundings etc They measure output, not input and they allow workers to think for themselves and be creative.

----------


## adrianh

> That sums it up. Most employees are like children; the boss thinks for them, the boss takes responsibility, the boss picks up the pieces. The more we try to control people, the less productive they become. Take Google and Microsoft as examples: no dress code, flexible work hours, informal surroundings etc They measure output, not input and they allow workers to think for themselves and be creative.


It's not that simple. You have to keep a close eye because quality can suffer if they are totally left to their own devices.

----------


## adrianh

> Totally derailing the thread Adrian  ... but worth it. Thanks for that post.
> 
> Haven't you essentially done the entrepreneurial "thing"? Set up the business, empowered the staff, delegated most tasks and moved on to the next job. I think its brilliant. Now why aren't more of us doing that?


I think that I realized that I am working myself to death for their benefit not mine. I was always the one working till 10pm trying to meet deadlines and spending my weekends at work while they take their paycheck, go home at 5pm to ther own lives. I just thought 'Stuff-it, why do I stress about their salaries....thats their job'.

I think that the business model is good. They have the knowledge, tools, sales channels and all the support in the world, all that they need to do is to 'do what they're paid to do in the first place' It's as if I found a magic button to make them care about their own productivity. 

@BUSFACT I think that most businesses have similar business models and that turnkey solutions could -no, should, be applied. I think that if one were to cut through the crap and get right down to it then most small business management could be outsourced. I think that the reason small businesses avoid outsourcing this function is because most small businesess rely on a huge fudge factor. They have to rob Peter to pay Paul, they make many mistakes and have to try to recover from bad descisions while still trying to stay alive. If you could develop a system that is able to do creative accounting and tell white lies then you might be on to something.

----------


## BusFact

> @BUSFACT I think that most businesses have similar business models and that turnkey solutions could -no, should, be applied. I think that if one were to cut through the crap and get right down to it then most small business management could be outsourced. I think that the reason small businesses avoid outsourcing this function is because most small businesess rely on a huge fudge factor.


Now you are aligning very closely to my view on the matter. I'm also wondering why the whole chore of running a business isn't outsourced. The fudge factor wasn't something I'd thought of before, but you most probably have a point. My guess is people like to control and micro manage their babies (business). They also want to give special service and the personal touch. None of them however seem like deal breakers.

----------


## Blurock

> It's not that simple. You have to keep a close eye because quality can suffer if they are totally left to their own devices.


That is why you measure output, not input. I don't give a shit if my sales team lies on the beach all day, as long as they achieve and exceed their targets. 
The output of the production team is checked by the quality manager who has to take the brunt if anything goes wrong. 

I remember when I was still working for a boss, how upset I was when the boss suddenly interrupted work to have a meeting about some nonsensical shit. Also in a corporate world one bright spark will get the idea that everyone has to wear blue caps or some other crazy idea. Most workers did not support it, but company policy prevails... I can mention many de-motivators emanating from management and causing a negative vibe. Management should coach, guide and check, not micromanage to the extent that they almost do the work themselves.

See that you have good systems in place and the business will work by itself.

----------


## wynn

> small businesess rely on a huge fudge factor.


I always say the difference between an accountant and a salesman and now I believe a Solopreneur is that;

An accountant sees a spreadsheet as a white page with a black line down the middle, income on the left, expenses on the right?

A salesman/solopreneur sees a spreadsheet as a thin white line down the left and a thin white line down the right with the entire rest of the page in varying shades of grey.

;-)

----------

adrianh (24-Jun-15)

----------


## HR Solutions

I think that being scared of taking risks is also a big factor in starting your own business and the simple fact that if you are not prepared to get out there and make it happen for your self, your family and providing employment for people is a big factor. A lot of people also do not have management skills or business skills to start their own business.  There is also a big difference from starting your own business and just ticking over or taking the next step to take the risk and grow.
Something that a lot of people do not do with a small business is pay them selves a monthly salary.  They just draw from the company account for themselves when they need it.  It is important to actually pay yourself properly every month.  If you can't draw a salary you are not making money.

----------


## adrianh

To get back to the question of starting multiple businesses. It comes down to having the business model & right people.

I can think of at least 3 different business ideas that could scale exponentially. I am willing to put my pecker on a block that they will work if the right people drove the ideas. The problem is that 99% of people either want to be an employee that gets a paycheck or they want to be the boss. A mere handful of people are willing to work hand in hand to build a new business. Their view is that if they are the employee then they don't really care and if they are the boss then they want to do it their way. Let's take one of my ideas. I would need to spend R30K on gear and have 2 talented people at hand. The one would be a photographer and the other a photo retoucher.  I could very easily send them into the wild to make lots of money. The idea is such that it opens itself up to being franchised very easily and the franchise chain would not only take photographs but lots more. The problem is that those people are 99% "FU.. I do what I want types" and I don't need that. I need people who are self motivated and driven to succeed. I can give them the administrative support and even supply them with the appropriate hardware but they have to make the calls and make the money. The more I think about it the more sense the business model makes. I am happy to enable people to grow and thrive provided that they treat me as a mentor / advisor / majority share holder. Hell, they can even get to buy the company that they build off me....I'm not going to live forever.

So, Why don't people start small businesses...and why do so many of them fail. Mostly because they don't understand the fundamentals of business. I am not talking about marketing etc. but rather about hard numbers. A business can only succeed once the owner is able to do the math on the fly. It's taken me years to get to understand these things and the problem is that textbooks don't teach you how to think about business. Yes, textbooks give you the formulae but your experience and the insights of a mentor are much more important than any textbook. Learning to do business is no different to learning to play golf, you can read as many books as you want but unless you get a coach and spend a lot of time learning from him and practicing what you learn you simply are not going to get anywhere. There is no magic bullet, people who want to start businesses should latch on to mentors and follow their advice. If it wasn't for my brother and his mentorship my family and I would have been up the creek long ago. His mentorship has enabled me to build a viable thriving business and I could not have done it any other way.

----------


## adrianh

> I always say the difference between an accountant and a salesman and now I believe a Solopreneur is that;
> 
> An accountant sees a spreadsheet as a white page with a black line down the middle, income on the left, expenses on the right?
> 
> A salesman/solopreneur sees a spreadsheet as a thin white line down the left and a thin white line down the right with the entire rest of the page in varying shades of grey.
> 
> ;-)


There is a lot of truth in this...

----------


## BusFact

> I am willing to put my pecker on a block that they will work if the right people drove the ideas.


If it needs "the right people", isn't it reasonable for these people to expect fat pay checks or majority shareholding? Isn't it the "driving" that requires all the time, energy and effort?

Aren't there a whack load of ideas out there that don't need the right people, but instead will do ok with reasonable people?




> I need people who are self motivated and driven to succeed.


A tall order IMO. Most people like this are climbing the corporate ladder or already out on their own.

----------


## Blurock

> If it needs "the right people", isn't it reasonable for these people to expect fat pay checks or majority shareholding? Isn't it the "driving" that requires all the time, energy and effort?
> 
> Aren't there a whack load of ideas out there that don't need the right people, but instead will do ok with reasonable people?
> 
> A tall order IMO. Most people like this are climbing the corporate ladder or already out on their own.


I would say the"right people" would be people that have a passion for what they are doing. People who believe in their abilities and who are patient enough to first invest before starting to reap the profits. We were fortunate to get exactly those people in our little business. For more than a year not one of us earned a salary and we almost bankrupted ourselves to get the business off the ground. Working nights and weekends eventually got us there and I am proud to say that we are now at the forefront of technology in our industry. 

We still have a long way to go as we are competing with large international companies, but the quality of our products and the passion of our people are putting us in a very competitive position.
This would not have happened if we just employed managers to run the business. Owner involvement is what is driving the passion.

----------


## wynn

I know I carry on a bit beating Peter Carruthers drum, except for a few eccentricities he presents a very good, well researched and personally experienced format for a start up business, if you are wondering why most people don't start a business or another business he gives some very good and pertinent reasons in the following course which is free so just have a listen and look, it will answer a lot of questions.

A lot of examples of what he says are the 'pitfalls' of starting a business are more than likely the reasons most people don't go there because they, other family or people they know have all been there and fallen in.

http://www.academyofsmall.business/b...e096e653a9ce29

----------


## enos

Passion. Not many people have passion for business,risks and real life challenges. Hence most only keep the idea in their heads. Those that chase the dream, arent starting because of the barriers to entry. We can start small but if knows u,they won't do business with you. Even be the taste of the cake. This is just my view as I'm one of those that what to start a business.

 I have registered all and all. Now I'm marketing. But a business that is not generating anything is not a business.

----------


## AdriaanNel

South Africa really needs entrepreneurs!  I have started my own business https://www.invoicesonline.co.za, and although it's a lot of work and comes with lots of ups & downs it is definitely worth it.  We believe in entrepreneurship, which is why we have a large free package - to help new businesses get off the ground without incurring any additional costs.

If you have an idea and passion go after it, live your dream!  Just start somewhere, you'll soon either see that it's not for you, or your passion will grow and you'll make a success of it!

----------


## HR Solutions

I also do think that a lot of entrepreneurs depend on business coming to them via "marketing" etc.  I firmly believe in telesales.  You have to get out there and make it happen - our girls HAVE to spend between 8.30 am to 10.30 am every morning doing telesales.  They have to know what they are talking about and definitely must not have a pitch that sounds like it is being read.  If we relied on clients contacting us purely from marketing we would not be around. We have our stats at the end of the week and know what percentage must come from telesales and then can see what they might be doing wrong.

----------


## BusFact

> I'm curious as to what the reasons are for you not having started your own business. For those that have started one, what are your reasons for not having started another one?
> 
> Is it a lack of finance; a lack of a suitable business idea; not enough time; not knowing where to start; not understanding the bureaucracy and taxes required; too much work involved; the fear of failure or ..... what?
> 
> So often we hear talk about how important the entrepreneurs are for creating jobs, so why aren't there more of them? Everyone who reckons they stand a chance seems to want to look for a job. I can understand the perceived safety of that option, but why not both a job and a business on the side?
> 
> I look forward to some of your insights.


Quoting the OP above for convenience. Thanks all for your input. So far the one reason brought up, that I hadn't really considered before was the one about the passion and drive required to run a business. Now this is generally true, especially if your business becomes your livelihood. Its most likely also a requirement for a business to thrive.

However, are there not plenty of business ideas that can be run on the side? Ones that don't require full time involvement and extreme passion? Perhaps the impression that an entrepreneur is some kind of special animal might be putting potential business owners off. Not every business needs to be wildly successful. Some may only generate beer money, others may generate a 13th annual cheque. If the time, money and effort spent on these businesses is minimal, then surely more people should run with this.

Where is my thinking lacking?

Surprisingly the common reason of not enough capital was only mentioned twice.

----------


## HR Solutions

Bus fact - If you don't have passion, the business will not do well, whether it is part time of full time. Yes an entrepreneur is a "special animal"  - it is not for every one and I think that a lot of people will agree that it is very difficult and sometimes have thought that it would be a whole lot easier working for a boss.

You mention capital - Capital should not be a reason not to start a business.  A lot of people started with nothing a built up or you can get a business loan

----------


## BusFact

Yeah, I agree with what you say about capital. In most cases people can start off small with virtually no cash. Of course this is problematic if you need to draw a salary from month one, but it doesn't mean that a business cannot be started, it just can't grow as quickly as it would if it had oodles of cash. I merely commented on it because its the most common reason I've heard of for people not starting a business.

My view is that to create a growing, thriving business then one of the ingredients is almost definitely drive and passion. However one could still make money with a half-assed attempt. Allow me to use a rather convoluted analogy using your industry, about which I know very little:

(A) Someone who arranges cold calling for 2 hours every day, works hard to build databases of employers and employees, is driven to personally verify all prospects and passionately tries to find the right matches for clients, will stand a pretty good chance of succeeding nicely. Someone who builds this sort of business from scratch or from very little is the entrepreneur that most of us associate with that word.

(B) Someone else who's spouse works for a medium sized corporate that hires maybe twice a year, and who happens to be involved in the artisan training industry that trains the artisans this company requires, could have a business on the side. When the need arises he can present the top candidates to his spouse's company. Its no way as a polished as (A), but every one wins. He gets comm, candidate gets a job and company gets employee at below market rate. This is still a business IMO.

B can't really earn a living this way unless he expands his client base, but he can certainly drift along and earn himself a nice vacation each year.

Here passion and drive are not so important. Yes it limits his growth, but they are not necessarily a requirement for starting a business.

----------


## HR Solutions

> However one could still make money with a half-assed attempt


Do You think ? ..... I don't

With regards to your two scenario's above relating to recruitment of employees.  If you think a person can do it half heartedly twice a year and still do well and make money and do it professionally I again disagree.  There are packages that cost us e.g. R6000 each per month x 4 that we subscribe to to enable us to find the right candidate for our clients, the employer.  On top of this we have rent and normal overheads.  Even if you are going to operate from home every now and again - how exactly are you going to find these staff you speak about ?? From gumtree ? How will you build a reputation ?  

But look if this is something you are looking at, give it a try, don't let me put you off. I know you are using my industry as an example - personally there are just too many costs involved if you want to do it right.  The recuitment data packages alone are the biggest expense and without them you cannot do it properly.

----------

Dave A (07-Sep-15)

----------


## BusFact

> If you think a person can do it half heartedly twice a year and still do well and make money and do it professionally I again disagree.


Nope I don't think they can do "well", but I do think they can make *some* money. In the example I gave they have no overheads or even any noticeable costs. Any comm he gets is profit. He is admittedly stuck with no growth prospects, and if a reputable recruitment agency offers a similar deal, his business will probably cease to exist.

Growth and decent profitability will indeed require much more effort and resources.

I suppose the point I'm driving at is that if the 1st prize (a thriving business) is being rejected by the dreamers with business ideas out there due to all its demands, then 2nd prize of earning pocket money with little effort is better than doing nothing at all.

At least by achieving 2nd prize, we may find some realise that they are actually on to a good thing and this will encourage them to put in the extra  work and head for 1st prize.

----------


## enos

> At least by achieving 2nd prize, we may find some realise that they are actually on to a good thing and this will encourage them to put in the extra  work and head for 1st prize.


If you are not passionate about this why would you be motivated to put extra effort in it?

Effort is the result of passion. Without it you would never have the desire to go forward. Particularly if if see you have a good thing. Good things brings out the best in you (passion)

I think it's fair to say from this we separate between the boys of entrepreneurs and men of entrepreneurs. Boys think about capital before starting, they won't start without it, passion or not , men think about capital last. And are driven by passion.

----------

Blurock (04-Sep-15), Dave A (07-Sep-15), HR Solutions (04-Sep-15)

----------


## BusFact

> If you are not passionate about this why would you be motivated to put extra effort in it?


People are motivated by different things. If someone suddenly sees that their product is more successful then they expected and earns them more money than expected, that may create the extra motivation. Another may discover that running a business is not as scary or complicated as they thought, so are then prepared to put in the extra effort and risk. Yet another may get a feel good motivation from customer feedback which encourages them to do more.

I think we are talking different ventures though. You two are talking about a business from which you want to earn a living and perhaps leave a legacy. In those cases I agree, self motivation, passion, commitment, etc are all extremely important. I'm saying though, that the business world is much bigger than that and includes hobby businesses, sideline businesses, silent partner businesses, half-assed efforts, part time efforts, once-a- year effort, etc as well.

If passion, motivation and commitment are not there for a potential business, I don't think that should be a reason for not getting started. It may well be a reason to limit expectations and results, but not a wall to starting at all.

----------


## Blurock

If you are not passionate about your business, you will never achieve the same as top entrepreneurs. 

I have seen too many mediocre businesses just plodding along and then eventually closing. The business is either sold for less than its potential value or closes down due to poor management, which leads to bad staff attitudes, which leads to dissatisfied customers, which leads to lack of orders, which results in an empty bank account. 

People with passion will make a business work against all odds. There are also those dreamers that have an idea and don't know how to implement it, but a true entrepreneur will always find a solution.

An entrepreneur is someone who jumps off a cliff and builds a plane on the way down.

----------


## Rory

> An entrepreneur is someone who jumps off a cliff and builds a plane on the way down.


Hahaha, sounds about right. I've got a big old parachute called a J.O.B. though. The idea being that once the plane is flying I can lose the parachute.

----------


## BusFact

> If you are not passionate about your business, you will never achieve the same as top entrepreneurs.


No arguments with that.




> An entrepreneur is someone who jumps off a cliff and builds a plane on the way down.


Lol. Brilliant.

----------


## SilverNodashi

> Ask yourself - if one of your staff opened up a business similar to yours or not even similar - How would you feel and what would you question for example ?


Good for him! Hopefully I have thought him well enough to carry through with it.

----------

