Reinvigorating the Spirit of Enterprise
This article first appeared in the 08/22 issue of "absatzwirtschaft".
Are you perchance someone of the entrepreneurial persuasion – founder or freelancer? If so, you are of a dying breed here in Germany, where self-employment has long been in decline, the number of start-ups falling by half over the last ten years. As I pondered this waning of the spirit of enterprise, I started thinking about the reasons that lead people to become entrepreneurs and settled on three primary motivations:
1. A desire for greater independence and creative self-realization
2. A sense of responsibility to carry on family tradition
3. A desire to make a meaningful difference in this world.
(in Germany the decision to start a business is seldom economically motivated, such as out of financial necessity.)
REASON 1
A DESIRE FOR GREATER INDEPENDENCE & CREATIVE SELF-REALIZATION
Reason 1 above has been the main driver historically, and it remains a powerful motivation. This pronounced need is shared by so many today that companies are giving employees an option to going independent, affording a measure of the benefits of an entrepreneurial situation. Under the New Work paradigm, many employees now work from home and are able to plan their own work times and set their own goals and targets. Doing team collaboration, kanban, etc. all from home, they are finding out about both the advantages and the downsides of creative self-realization and independence without having to go the entrepreneurial route.
Some will find unbounded independence and all that self-realization too much of a good thing – luckily today you can often enjoy some entrepreneurial freedom without having to abandon your employer. It’s a matter of negotiation what benefits one can possibly secure without having to take on all of the responsibilities. Accordingly, reason 1 will likely not be as prevalent as the motivating factor for becoming an entrepreneur going forward.
REASON 2
A SENSE OF RESPONSIBILITY TO CARRY ON FAMILY TRADITION
Regarding reason 2 cited above, it is noteworthy that entrepreneurship has been falling in status since 2007, according to a Forsa survey (forsa Institute for Social Research and Statistical Analysis), more so than any profession listed in the survey. What accounts for this loss of prestige? We have on the one hand the image, affirmed for example in a recent pwc study, of the regionally rooted business owner, who is hard-driving, disciplined and a strong leader, and moreover tradition-conscious, feeling responsible for conserving a legacy. But while harboring tradition is seen as respect-worthy, it is also apparently seen as outdated, this therefore will not be the motivating factor behind any renaissance of entrepreneurialism. It also has to do with why younger people today who start their own business in Germany tend to reject the term “entrepreneur”, preferring to refer to themselves as “founder” (even after the start-up days have long passed) for the word’s connotations of bold creating and shaping.
"A desire to change the world for the better
is the primary motivation for 40%* of entrepreneurs.“
REASON 3
A DESIRE TO MAKE A MEANINGFUL DIFFERENCE IN THIS WORLD
Considering now reason 3, a desire to change the world for the better, it is of note that no less than 40% of entrepreneurs cite this as their primary motivation. In view of the economic and societal issues and changes that we currently face, it is without doubt urgently necessary that many should take such an attitude.
Beyond that however, I see this motivation as the link between the other two entrepreneurial identity ‘flavors’ – the start-up founder versus the classic family firm conservator – in that it unites self-determination and creative drive with social responsibility and long-term thinking. I thus believe the ‘shaper of society’ will be the predominant avatar informing the self-conception of creative founders, of business owners bearing the torch and of all those possessed of the spirit of enterprise.
*Study | This article first appeared in the 08/22 issue of "absatzwirtschaft".
Image references: Image 1: "Header" // Image 2: "Tired" // Image 3: "Homeoffice" // Image 4: "Look"
Author: Europa Bendig
STURMundDRANG founder and General Manager Europa Bendig has been consulting on innovation processes for NGOs and international enterprises for 18 years, primarily in the luxury goods, health, services, beauty, living and social businesses. She specializes in cultural codes and narratives that give brands and portfolios cultural relevance and promote customer loyalty.
CHANGING CULTURES MAGAZINE
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