Who wants to be an Entrepreneur?

It seems an appropriate topic considering it is currently Global Entrepreneur Week, but sadly not one that is especially popular in Germany where it seems job security is more important than independence. Just 18% of Germans could imagine starting their own business, according to a survey published this week by Amway Corporation in conjunction with the Entrepreneurship Center at the Ludwig-Maximilians-University Munich (LMU). It seems a somewhat surprising figure considering the same survey uncovered that 58% believe their current career prospects offer “bad” or even “very poor” opportunities to grow.

In another survey conducted during Global Entrepreneur Week (16 – 22 November) by Franchisee recruitment specialists, TFP Deutschland, 69,6% of respondents cited “Unwillingness to give up secure income” as the main reason they would not consider starting a business. Interestingly, more than a third of the respondents stated they would not know where to find advice on the basics of starting a new venture.

It’s well documented that entrepreneurs play a valuable role in the growth of the economy, as well increasing productivity; creating new technologies, products, and services; and also rejuvenating market competition. It’s been noted as a priority in almost every EU members’ economic policy. So, why are so many people still so reluctant to give it a go?

Many people remain unwilling to start a business because of the perceived risk and lack of secure income. In addition, it appears that a large proportion is just unaware of the wealth of support and advice that is available to budding entrepreneurs, and perhaps that’s something that needs to be addressed. Events such as Global Entrepreneur Week are a great platform for getting this message across but it’s obvious that more should be done to promote access to these services throughout the rest of the year.

So, what can be done to reduce the element of risk and open up the world of entrepreneurialism to a larger group of people?

Franchising bridges the gap between working for yourself, but not by yourself. Operating a proven business model provides a much greater chance of success; franchise businesses are normally quicker to reach positive cash flow than other start-ups. Additionally, franchisees are not alone when they start; they are instantly part of a team that comes with centralized support and resources that they could not afford by themselves. This support can be incredibly valuable especially in the beginning when starting out.

However, franchising is also not for everyone. Whilst it’s a less risky way to start a business, it’s not risk-free and it still needs the same level of personal commitment and tenacity that starting any business requires. It can also be a little restrictive for the true entrepreneur who might prefer a free-styling laissez-faire management style rather than conforming to the more stringent processes required as a franchisee. It might just be the middle-way.