What Drives People to Start a Business

Reasons To Start a Business

Part 1 of Acey Gaspard’s Guide to Starting a Small Business – Made Simple

Starting Your Own Business

So you’re considering getting into your own business. That’s a big decision, and it can change the way you work and live if you go into it for the right reasons.

Owning your own business can mean more control over your day-to-day and more say in the direction of your work. It can be a genuinely rewarding path — but only if you’re doing it for the right reasons.

This article will help you get clear on your reasons for starting a business. When you know what you want, you have a much better chance of getting it.

Let’s Look at Johnny’s Story

Johnny worked in an automotive detailing shop, and he was very good at it. The cars he worked on turned out like cars in the showroom. What he didn’t like was being told what to do when it came to detailing the cars. The business owner focused on profits instead of service and usually made Johnny cut corners during the detailing process.

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One day, Johnny had enough. He knew he could do a better job detailing cars his way, and he decided to open up his own shop. He walked into the boss’s office, told him he was quitting, and walked out, not even giving the boss a chance to ask what the problem was. Within three weeks, Johnny was in business for himself.

In the first few weeks, Johnny found himself taking care of many tasks he wasn’t familiar with. Soon he was working extra-long hours, and he still didn’t have the time to do what he was good at, which was detailing cars. Johnny found himself in the world of business, and he didn’t like it.

After only a few weeks of this, he gave up. Johnny was finished before he even got started. He never really wanted to run a business; he wanted to detail cars. That was his passion and his skill, and that was all he wanted to do. He started a business for the wrong reason.

Now Johnny is worse off than when he started — he’s broke, unemployed, and discouraged. Still, most people who start with the right motivation do better than Johnny did: research from the Ewing Marion Kauffman Foundation found that 77.9% of startups survive their first year.

Don’t Let What Happened to Johnny Happen to You

Johnny hated running a business — every part of it — and that’s why he gave up. He would have been better off negotiating more control over the detailing process with his employer instead of quitting outright.

Most of us do our best work on tasks we’d do even without getting paid for them. When you’re considering starting a business, look for something you’re genuinely happy doing day to day.

Move toward what you want, not away from a problem. Once you’ve found the work that’s right for you, you’ll perform better and enjoy the process more.

The reasons for running your own business are personal, and there are many valid ones. But if you’re only running from a problem, without a clear reason to run toward, you’ll have a harder time succeeding. In fact, about 40% of adults say fear of failure is what keeps them from starting a business at all, according to the Global Entrepreneurship Monitor. Don’t let that be the reason you don’t start, and don’t let a vague reason be the reason you don’t stick with it.

Popular Reasons to Start a Business

Guidant Financial’s 2024 Small Business Trends survey found that the top reasons people start a business are being ready to be their own boss (60%), leaving a corporate job behind (47%), and following a passion (31%). Here’s a closer look at these and other common reasons.

To Be in Control

Some people want to run things their own way. They may be in a job where they have a better way of doing a task, but because they’re an employee, they have to follow procedure without making changes. That’s fine for some people, but it’s hard for those who want more say over how the work gets done — and it’s one of the top reasons people start a business.

To Have More Freedom

Some people like to set their own hours and take time off when they want. Certain businesses make that easier than others — a graphic design business, for example, offers more flexibility than a convenience store that needs coverage around the clock. It’s worth checking whether the business you’re considering actually offers more freedom than the job you have now, since some don’t.

To Create Something Special

Creating a product or service you’d like to offer the public is a common reason people start a business. Developing something new that catches on in the marketplace isn’t easy. It’s good practice to find out if people actually want what you’re offering before investing too much time and money.

To Feel Successful

Seeing yourself as a successful business owner is one reason people start a business. There’s nothing wrong with wanting to feel successful — just know that building a successful business takes real time and effort. Overnight success is rare.

To Gain Recognition

Some people want recognition and standing in their community, and that’s part of why they start a business. It’s rarely the only reason someone starts a business, but it can be a real factor.

To Feel a Sense of Accomplishment

Many people ask themselves what they’ve done with their life, especially as they get older, and look back feeling like they haven’t accomplished much. Starting and running a successful business gives some people a sense of purpose, and that drive is one reason they start their own business.

To Improve Their Financial Situation

Improving their finances is one of the most common reasons people start a business — by definition, that’s what a business is for. But it’s usually about more than money alone. For most owners, it’s also about the lifestyle it provides, the value it delivers to customers, and, often the most important part, the chance to follow a passion.

To Build a Better Future

Many people think about where they’ll be in 20 or 30 years. If they’re in a job that isn’t leading anywhere, the financial growth and stability of a successful business can be what draws them toward starting one instead.

I Can Do Better

Some people spend years working in an industry, building up knowledge and experience, and start to notice how the company they work for could be run better. Believing they can build a better company is a common reason people go out and start their own.

Find Your Core Desires

Write down your number-one reason for wanting to start a business. Then ask yourself why that reason matters to you, and keep asking “why” until you get to what’s really driving you. That’s your true, underlying desire.

Whatever your reasons for wanting your own business, it’s worth being clear about them. Once you are, it’s easier to stay on track and build toward real success.

Final Thoughts

Starting a business takes time, effort, and money to get right. If you want to give yourself the best shot at success, start it for reasons that are truly your own.

Key Points and Facts About Starting a Business

The most common reasons people start a business are wanting to be their own boss, wanting to leave a corporate job, and wanting to follow a passion.
Guidant Financial’s 2024 Small Business Trends survey found 60% of business owners cited readiness to be their own boss as a top motivation, 47% cited leaving a corporate job, and 31% cited following a passion.
Businesses started to escape a problem, rather than to pursue a genuine desire, are more likely to fail early, as in Johnny’s story.
About 77.9% of startups survive their first year, according to Kauffman Foundation research.
Fear of failure, cited by roughly 40% of adults, is one of the biggest reasons people never start a business at all, according to the Global Entrepreneurship Monitor.

Action Steps for Finding Your Reason to Start a Business

Identify Your Motivation

Write down every reason you can think of for wanting to start a business.
Circle the one that feels the strongest or most personal.

Test the Reason

Ask yourself why that reason matters, and keep asking “why” until you reach the real driver behind it.
Check whether the reason is something you’re moving toward, not just something you’re running from.

Confirm the Business Fits the Reason

Match the business idea to the reason — for example, if freedom is the goal, check whether the business actually offers more freedom than your current job.
Talk to people already running a similar business to see if it delivers what you’re hoping for.

Checklist for Getting Into Business for the Right Reasons

Know your top reason
- Write it down in one sentence.
Dig into the “why” behind it
- Keep asking why until you reach your real motivation.
Rule out “running from” reasons
- Make sure you’re moving toward something, not just escaping a bad job.
Match the business to the reason
- Confirm the type of business you’re considering actually supports your reason (freedom, control, income, etc.).
Set realistic expectations
- Remember that most owners don’t see overnight success. Plan for the time and effort it takes.

FAQ: Reasons to Start a Business

What’s the most common reason people start a business?

According to Guidant Financial’s 2024 Small Business Trends survey, the most common reason is wanting to be one’s own boss, cited by 60% of business owners.

Is it a bad idea to start a business to escape a bad job?

Starting a business only to escape a problem, rather than to pursue something you actually want, makes it harder to stick with the work once it gets difficult, as in Johnny’s story in this article.

Do most new businesses survive their first year?

Yes. Research from the Kauffman Foundation found that 77.9% of startups survive their first year.

What keeps most people from starting a business in the first place?

Fear of failure is one of the biggest barriers, cited by around 40% of adults according to the Global Entrepreneurship Monitor.

References:

Acey Gaspard’s Guide to Starting a Small Business – Table of Content