Unlimited Potential

A study that was conducted at the National Opinion Research Center (NORC) at the University of Chicago for the Small Business Administration's Office of Advocacy has found a positive link between the number of years an individual is self-employed and their likelihood to be self-employed throughout their career. The study, which can be found here, set out to answer some questions as to what sort of things guide an individual to self-employment. They ultimately concluded with some findings that were previously unknown.

They found that those who reported self-employment tend to have parents with higher educational attainment and were more likely to have grown up in a rural area or farm. In addition, early exposure to self-employment increases the likelihood an individual is self-employed in their early and mid-careers. There was an especially strong link between those that indicated self-employment between ages 20-22 with their measure between ages 22-41. The availability of financial resources did impact the probability of self-employment, but by very little. Lastly, every additional year of self-employment increases income and net worth significantly.

So what does all of this mean? Well, if earning potential and entrepreneurship are goals and interests of yours, getting involved early makes a huge difference. The study is basically saying that the more involved with self-employment you are early in your life and career, the more likely it is that you will be self-employed later on, expanding your career opportunities. In addition, you will impact your earning potential more.

We live in an economy that thrives on businesses. There is nothing that stimulates local and national markets more than the success of all businesses, large or small. Our government has called for more entrepreneurial spirit, and those that got involved early will tell you that it's worth it. Most people aspire to work for themselves for a multitude of reasons. Whether you are interested in working your own hours or not having to answer to someone, the allure of self-employment is evident. However, it is not without its challenges.

Many fail in their ventures simply because of a lack of preparation. Having a great idea is one of the most empowering feelings, but there is a huge difference between idea generation and execution. Those that succeed, succeed in execution. A significant portion of that is experience and preparedness. I have gathered from my interaction with entrepreneurs that starting a business is much like trading stocks; you won't learn how to do it well until you get in there and do it yourself. This study seems to punctuate that belief.

How does one get involved early? I know that it wasn't very feasible for me to start my own company. Besides lacking a great idea, I have very little financial means to support an entrepreneurial venture. However, I feel that I have positioned myself to gain experience through the Orr Fellowship. If you are in a similar position as I was, I would suggest exactly the same to you. The path to an entrepreneurship career may begin by taking a job at a small company. Research, and find entrepreneurship opportunities in your local community. Identify some high-growth start-ups and apply for a job there. They may not have a position for you, so get creative and make one! Even offering to serve as an unpaid "apprentice" can get your foot in the door if you have no other options. Working in this environment will be sure to give you an inside look at an entrepreneurial operation.

When you start early, you make mistakes early. Getting those mistakes out of your system and gaining the valuable knowledge that they offer can be the difference between someone who continues down the path of self-employment and someone who has to learn the hard way later on. The earlier you start, the potential number of successful years you have in front of you is greater.