Entrepreneurship can be a fatal decision

Entrepreneurship can be a fatal decision

We live difficult moments and many nations require the urgent application of alternative solutions to face the current complicated economic situation. Promoting entrepreneurial initiative, creativity and innovation is one of the main bets to boost competitiveness in a context of international crisis.

In many countries the world of entrepreneurship is becoming fashionable, little by little it is penetrating among the population. And the truth is that it sounds very good: progress, economic dynamism, creative class, creation of value, growth of the country, etc.

Needs more than ever of entrepreneurs who create companies to boost this stagnant economy and, although with some delay as in almost everything, it is necessary to launch awareness campaigns and aid plans that are being carried out from the Public Administration to stimulate an entrepreneurial environment and promote the generation of new economic units.

However, undertaking is not an easy task and even less so in the current sad situation. And the worst is when many people start to undertake without an adequate personal situation, without basic skills, minimal training and prior preparation in relation to the planning and provision of capital to make the investment. Then come the surprises.

Entrepreneurship is a decision that should not be made around sad reasons such as not having another alternative (unemployment situation) or the brilliant business idea that one has come up with.

Entrepreneurship involves investing, and not only is it an initial investment: if you are self-employed you have to pay € 254 each month, plus all the necessary expenses to develop your activity: rent of the premises, taxes, loan granted, administration expenses, salaries, raw materials, supplies, etc.

Entrepreneurship involves entering fully into a world of annoying bureaucracy and long procedures: licensing, registration, prevention of occupational risks, VAT and income tax declaration, payroll and social security, etc. And even more with the requirements in terms of documents and paperwork when it comes to certain projects co-financed and supported by the State.

If a person has no idea of ​​doing all this, they must hire an administrator or put them in the hands of an external company (agency), which implies a cost to cover. In addition, we have to allocate part of the available capital or reinvest profits in other essential areas, such as marketing or staff training.

The surprise comes when in the previous planning one realizes that the dead point indicates that to cover the costs it must generate a quantity of income (sales) in which it had not been counted.

Does the Administration help in this regard?

About business ideas: how many entrepreneurs or trainers talk about ideas? Bright and beautiful ideas that must then be executed. And that’s where the entrepreneur must worry and try harder. I can have the same idea as you, but you may know how to exploit it better: execute the project through a different business model, with a different way of managing the company, more profitable. Moreover, you may be a phenomenon managing accounts and reducing costs, but if you have no idea of ​​marketing or leadership, we are going badly. Remember that income counts, friend.

Yes, it is true that sometimes businesses are born by the hand of people who have launched to undertake without much preparation and has gone well, like many others who fail, and without counting all those who do not even undertake unmotivated by the mountain that they must climb to start as simple freelancers.

Can you imagine a father with two children, a mortgage of 30 years ahead, unemployed and without savings that decides to start a business? He arrives home and says to his wife: ” Honey, since I do not have a job, I decided to open a business: the rent for the place only costs € 800 a month. ”

Entrepreneurship can be done by anyone, but not everyone is prepared for it. It is like the one that decides to climb a mountain: it can have something very important that is the motivation and the ability to overcome, but it is not always enough to have a good climbing team and all the illusion of the world. Many fall because they have no experience, no knowledge of high mountains, nor a guide, nor have they been prepared to withstand weather conditions and hidden risks.

Wanting is power and you learn from mistakes, but be very careful with rushing without taking into account the factors of failure and the risks of this activity.

Something similar happens with the professionals who promote the activity of starting a digital business in La Red. How many believed that they would become rich by creating a blog with Google Adsense advertising? Then they realize that to achieve important results you must work hard, from positioning as a personal or corporate brand to the logical application of technology to offer something of value to a target audience, through electronic marketing and product offerings. or services to a market that needs them.

Creating an electronic business implies having certain knowledge and skills that can be acquired if they are not available, but only if one makes an effort and invests time.

The Public Administration should promote entrepreneurship trying to contain the elements of control that clearly harm the entrepreneur, reducing bureaucratic requirements, maintaining a fluid bidirectional communication with the business world, digitizing as much as possible the procedures to be carried out, facilitating tools and raising awareness of the risks what this activity entails, as well as the responsibilities and obligations that one acquires when they want to open a business.

It is not a matter of doing it only because it is good and, in passing, selling its social aid program, but also to make the population aware that the activity of undertaking is not, in principle, as attractive as some people paint it; which requires sacrifices, some skills, certain strategic resources and an adequate personal situation.

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