Want to find out if entrepreneurship is worth it? Then you’ve come to the right place!

By the end of this guide, you’ll know the top benefits of entrepreneurship and how to get started.

Ready to learn more? 

Let’s go!

What is an entrepreneur?

First things first: 

Let’s figure out what an entrepreneur is. 

At its core, entrepreneurship is all about turning your ideas into reality by starting a business.

As an entrepreneur, you’re the one behind the wheel – you’re in charge of the business and responsible for its growth and success.

Now, a good number of working-age people are entrepreneurs. 

In fact, in the US, over 10% of the workforce is self-employed. That’s more than 16 million entrepreneurs, so you’re in good company.

But entrepreneurs don’t always do it full time or as full-time employers. 

You see, freelancers are entrepreneurs, too.

In 2023, 64 million people – 38% of the workforce – performed some type of freelance work, up from just 4 million in 2022. 

And entrepreneurship is growing. 

In fact, over half of Americans under the age of 35 are planning to start a business in the coming years.

And by 2028, an estimated 90 million people will be freelancers.

Ultimately, there are four types of entrepreneurship:

1) Small business

This is the most common type of entrepreneurship and is typically focused on offering local or niche-specific products or services. 

A small business entrepreneur is responsible for creating, managing, and overseeing the day-to-day operations. 

Compared to enterprises, small businesses have fewer employees and a smaller market. They also earn less – small businesses have a revenue cap of $35.5 million. 

2) Enterprise

An enterprise entrepreneur creates and manages large-scale businesses with the ultimate goal of growth, market expansion, and having a strong competitive edge.

In other words, they oversee large, well-established companies that offer several products and operate across different regions or even countries. Typically, enterprises employ thousands of people. 

Apple is a great example of an enterprise.

3) Startup

Startup entrepreneurs are the driving force of new companies (typically no older than five years) that have the potential to change the industry by addressing unmet needs.

Startups grow quickly, typically because the founder has turned to venture capitalists or angel investors for funding. 

4) Intrapreneurship

An entrepreneur owns their business – an intrapreneur works at a company founded by someone else. 

They’re responsible for identifying new business opportunities, developing new products or services, and creating positive change within the company. 

What are the top benefits of entrepreneurship? We’ll discuss them in the next section, so keep reading!

15 biggest benefits of entrepreneurship 

There are plenty of advantages of entrepreneurship – from flexibility to being your own boss and more.  

Here are the 15 top benefits of entrepreneurship. 

Flexibility

Flexibility is one of the top benefits of entrepreneurship.

I personally knew entrepreneurship was right for me when I didn’t have enough PTO to be with my family when they needed me the most after a series of health emergencies. 

But now, I can create a schedule that works for me – and so can you. 

That means better work-life balance, and who doesn’t want that?

For more on how to have a life and a business, take a look at this video: 

Work anywhere, anytime you want 

Another of my favorite benefits of entrepreneurship is that you can run a multiple six- or seven-figure business from anywhere, whether at home or in a new city.

And it leads to increased happiness: 81% of entrepreneurs say they’re happier working at home than in an office.

For me, working from home allows me to spend more quality time with my husband, friends, and family.

Unlimited earning potential

Entrepreneurship is risky.

But entrepreneurship offers more earning potential than the typical 9-5. In fact, the net worth of self-employed families is four times higher than non-self-employed families.

However, to increase your income sustainably, you need to minimize risks.

Selling products as a first-time entrepreneur increases risk because you’ll need to maintain stock while figuring out how to sell it. 

Selling services reduces risk because it only requires the knowledge you already have.

Either way, relying on your customers instead of your employer increases job security.

Low startup costs

Most people think launching a business is expensive.

More than 2 in 5 people say that money is what’s stopping them from starting a business.

But you can launch your business without making a big investment.

You just have to choose your business model wisely.

For example, coaching requires very little investment. You don’t need any inventory or office space – just your skills and a computer.

Autonomy  

As an entrepreneur, you get to be your own boss.

In other words, you decide how things are going to be. Every decision is yours to make, from your business plan to who you’ll work with.

It’s a lot of responsibility.

But creating an environment and schedule that works for you and offers a greater sense of freedom, increases your happiness, and allows you to earn more.

Easy to scale  

One of the top benefits of entrepreneurship is scalability, especially for online businesses.

They don’t rely on location, staff, or inventory. You can increase sales with process automation and digital marketing. 

It all depends on your business model and whether or not you require inventory or employees.

Here I talk more about one of the most scalable business models: 

Freedom

With the right business model, you can build a Freedom Business.

It gives you flexibility, freedom, and profit – all top benefits of entrepreneurship.

You just need skills you already have and a way to maximize your profit.

From there, it’s about automating your processes and scaling your business accordingly.

You can learn more about building a Freedom Business in this guide.

Personal development 

New skills are exciting benefits of entrepreneurship.

You might start your business with a core skill set, but you’ll need new ones to be successful.

You’ll learn new marketing or social media strategies, how to close deals, or ways to improve your public speaking skills.

But you’ll also develop an entrepreneurial mindset, which includes resilience, resourcefulness, and problem-solving. 

Network with other entrepreneurs

Entrepreneurs might work alone, but they’ll never be alone.

One of the top benefits of entrepreneurship is the opportunity to build a network of people like you.

Connecting with others encourages collaboration, knowledge sharing, brainstorming, and, sometimes, partnerships.

I’ve personally found some of my best friends through networking – not to mention plenty of opportunities like getting featured on podcasts and websites like Forbes.

Greater impact 

One of the top benefits of entrepreneurship is that you can launch a business aligning with your mission instead of someone else’s.

Whether you want to help clients solve problems or reach their goals, find innovative solutions to community problems, or create jobs, entrepreneurship is what often allows you to build a fulfilling life. 

Wealth creation

Financial wealth is certainly one of the benefits of entrepreneurship, but wealth is more than money.

And entrepreneurship will allow you to accumulate invaluable experiences.

Why?

Because it forces you to step outside your comfort zone and helps you uncover hidden strengths, opportunities, and experiences. 

You’ll only find them when you embrace the risks and opportunities of entrepreneurship.

Innovation  

In traditional workplaces, employees follow rules. But entrepreneurs get to experiment and try new things.

That freedom to push boundaries is one of the greatest benefits of entrepreneurship.

You can take calculated risks and change your approach without the need for permission or approval from others.  

Turn your passion into a career    

One of the benefits of entrepreneurship is turning your passion into a fulfilling career.

Becoming an entrepreneur allows you to break free from the traditional 9-5 mindset and build a business based on something that actually excites you. 

Building a business based on your purpose allows you to align your personal and professional lives.

Why?

Because choosing your projects and direction gives you even greater passion, meaning, and satisfaction. 

Leadership skills 

One of the most invaluable benefits of entrepreneurship is that it teaches you to be a leader.

First, you do it with your clients – you lead them to the results they want to achieve. 

And when it’s time to build a team, you’ll learn to manage people effectively. 

Job creation

Entrepreneurs are the backbone of our economy.

No, really. 

Small businesses make up about 40% of America’s GDP and account for 64% of new jobs created each year in the US.

In fact, 62 million Americans (46%) are employed by small businesses.

Those are the top benefits of entrepreneurship. Keep reading to learn how to become one!

How do you become an entrepreneur in 5 steps?

You can become an entrepreneur in just five steps.

The first is to find your idea and niche.

Find a business idea and niche 

To find a business idea, you need to answer three questions: Who am I? What means the most to me? What problem would I like to solve?

Of course, there’s more to it – I’ll teach you to find a failproof business idea here.

Then, you need to find a niche.

A niche gets the attention of your ideal audience because your services are tailored to them.

You can find it in three steps:

1) Solve a problem people will pay for

2) Find the most profitable problem you can solve

3) Get specific

I’ve put together a list of profitable niches to get you started.

The most important thing is to choose a business model with a great profit margin that you can start building right now.

I talk about that in this video: 

Set realistic goals 

Setting goals is crucial for any business – they help measure your growth and offer clarity.

You can set short-term and long-term goals for your business, but the key is to set the right goals.

In other words, be ambitious about what you’d like to achieve, but stay realistic.

For example, you wouldn’t set a goal of reaching $100,000 in sales if you haven’t made your first one.

But aiming to get your first client is an achievable and realistic goal. 

I’ll tell you how to set business goals in this guide.

Get your first clients

The biggest challenge a new entrepreneur faces? Getting clients.

When I first started, I had to remind myself to focus only on the next client I was going to get. This prevented me from thinking about getting overwhelmed and self-sabotaging.

You also have to know where to look.

Online forums relevant to your niche, like Facebook groups or Subreddits, are a great place to start.

Focus on providing value and building relationships before you offer your services. Once you’re on their radar, you can take the conversation further.

I talk more about this approach in this video:

Focus on the right things

I see it all too often: New entrepreneurs spend too much time focusing on what they think will secure them clients instead of what will actually work.

For instance, I spent my early days putting all my effort into my blog and website even though I had no traffic.

But I did have an audience on Facebook, so I focused on and leveraged that audience instead.

I know it’s tempting to try to take advantage of every avenue, but remember, nobody can do it all. 

So simplify your with one simple sentence: My goal is ______, so I need to ______.

Figure out your tangible goal and the key activity that will help you reach it.

I’ll teach you how to figure out your sentence in this short video:

Build a system

Every successful entrepreneur has a set of systems that work for their business.

After all, systems are what make your business become predictable.

You don’t have to worry about setting all of these systems up right now, but eventually, you’ll want to have the following in place:

• Lead generation system
• Sales mechanism system
• Delivery system
• Money collection system
• Finance tracking system

I’ll talk more about building a system in this guide.

We’ve covered the top benefits of entrepreneurship, but the truth is that it has some drawbacks, too. Keep reading to learn about them.

What are the disadvantages of entrepreneurship?

Like any job, entrepreneurship does have its disadvantages.

One of the most obvious disadvantages of entrepreneurship is the total absence of job security.

Whereas traditional employees have some degree of security, entrepreneurs’ jobs are never guaranteed. 

But entrepreneurship can offer you more security if you build your business properly and focus on minimizing risk and increasing profit.

Entrepreneurs also have a greater responsibility than traditional employees. After all, their business and success depend on them.

That’s why it’s so important to develop skills like resilience and a willingness to fail. 

Yes, failure is a part of entrepreneurship – there’s always a chance your business won’t make it.

But keep in mind that even as a traditional employee, you live with the risk of losing your job. 

The good news is that when you own a business, you have control over the risks you take, and you can minimize them to grow a thriving business.

Finally, better work-life balance isn’t guaranteed in entrepreneurship. 

The truth is that employees sometimes strike a greater work-life balance than entrepreneurs. 

While employees have set working hours and designated off-time, you might find it hard to unplug and work long hours without time for anything else. 

That’s why it’s so important to build a Freedom Business that allows you to stop trading time for money. 

By automating and outsourcing what you can, instilling effective time management strategies, and prioritizing their health, you can find a better work-life balance. 

Next steps

Well, there you have it!

A detailed look at the top benefits of entrepreneurship.

If you’re ready to become an entrepreneur, my Employee to Entrepreneur course is for you. 

In it, I’ll give you a step-by-step guide to building a Freedom Business that will provide you with all the benefits of entrepreneurship. 

You can learn more about it here and sign up for the waitlist here.

Read more:

How to Become an Entrepreneur Without an Idea

Mindset Habits of Successful Entrepreneurs

Small Business Statistics: The Ultimate List