The American dream of our time: Entrepreneurship

We are surrounded. Wherever we turn to, we see entrepreneurship. We read it on the pages of business magazines and newspapers, listen to podcasts that host entrepreneurs and present their stories, witness economists advising the young to “become an entrepreneur” and in fact, we see white-collar workers actually doing that, changing their career paths and becoming entrepreneurs. Startups have become one of the business models that are the theme of many conversations, entrepreneurs have become those people followed the most and dreams of becoming an entrepreneur have prevailed among white-collar workers recently. So, what is entrepreneurship? And most importantly, what it is not? What should those who are ready to step up the gas pedal should expect? What are the pros and cons of entrepreneurship? We will look for the answers to these questions in this piece, called “Entrepreneurship 101.

What is entrepreneurship and what is not?

In the simplest terms, startups are companies established to develop a unique product or service, bring it to the market and make it attractive to customers. The founder of most startups starts by imagining a business, product, or a service that society needs but has not yet been realized. A startup based on innovation aims to overcome the shortcomings of existing products, create new categories of goods and services, and disrupt traditional ways of thinking and doing business. For this reason, many startups are known as "game changers" in their sectors. Tech giants such as Facebook, Amazon, and Apple are the most well-known startups. And as you can imagine, many companies that dominate the startup industry also operate in the technology field.

But what distinguishes a startup from a regular company? In both traditional companies and startups, employees work to create a product or a service that customers will buy. What differentiates a startup from other businesses is the way it does business. Traditional companies often operate based on existing patterns of how a business should operate. A startup aims to create a new pattern.

The most significant factor that distinguishes startups from traditional companies is speed. Startups aims to develop and realize ideas very quickly. A budget is essential for this speed, and the way to find the budget is through investment rounds. Startups usually try to raise funding by going through investment rounds at the beginning of their journey. In the pre-seed period, friends and family of the founders often invest in the business. Afterwards, "angel investors" who often invest in startups come into play. Then there are series A, B, C, and D investment rounds led by venture capital firms that invest tens of millions of dollars in the companies.

What is not entrepreneurship?

While trying to answer the question "What is entrepreneurship?", it also important to try to answer the question "What is not entrepreneurship?". Nowadays, the concept of entrepreneurship has started to move away from its fundamental meaning, and misconceptions about the subject have started to rise. For example; one of the most common mistakes is to confuse the entrepreneur with the trader. People who buy products from suppliers and sell them to customers for profit are called "traders" rather than "entrepreneurs." While trading is part of entrepreneurship, it is only one part of it. On the other hand, the already widespread idea that "Entrepreneurs always create technology" is questionable.

Another common misconception about entrepreneurship is that all entrepreneurs make high financial gains. Of course, many entrepreneurs achieve success, grow and turn into big companies, and achieve financial freedom, but it is essential to remember that many entrepreneurs do not.

Finally, the perception that entrepreneurs are "self-employed" is often incorrect. Technically, yes, an entrepreneur is their own boss, but this does not mean that entrepreneurs do not have to report to anyone. The founder of a startup that has raised investments needs to report regularly to their investors or, if they have co-founders, to seek their opinions.

Many people are attracted to the idea of entrepreneurship because of the potential freedom it provides. Yes, being an entrepreneur means that most of the rules are set by you. If you want, you can abolish the 9-6 working hours, switch on the remote working option and dress the way you want. But remember that you are also responsible for making this business profitable. Being an entrepreneur often means making personal sacrifices and working long hours. In short, entrepreneurship is not a shortcut to be rich and free. It is important to remember that many startups fail, and we generally hear about successful ones.

Disadvantages of entrepreneurship

In 2011, an article published in The New York Times highlighted the challenges of entrepreneurship and criticized the romanticization of entrepreneurship as a way out. After 11 years now, entrepreneurship has grown in popularity, but the challenges remain.

The article lists the disadvantages of entrepreneurship as follows:

• Finding a market for your product or service is a big challenge, as is finding the resources to start a new business.
• As the founder, everything will be your responsibility. You will have to manage production, distribution, marketing, sales, employees, taxes, insurance, and licenses at the same time.
• Intense working hours and the lack of have work-life balance will also be a part of your life.
• Being an entrepreneur means that you don't have the safe arms of a regular salary. Even during the first few years, most of the money goes into growing the business, and it is as difficult to have a steady income.

It is where entrepreneurship differs from working as a white-collar employee. If you are a white-collar worker, you are one of hundreds or thousands of employees in your company, and you have defined responsibilities. After perform your duty, it is possible to switch off your computer and rest your mind for the rest of the day. Entrepreneurs can't take their minds off work, especially in the beginning stages.

What about the advantages?

Leaving the negatives aside, it should not be overlooked that entrepreneurship opens the doors to a whole new world and has many opportunities. As an entrepreneur, you are not limited, you can explore all aspects of an organization and take part in any area (marketing, human resources, finance, etc.). You are in charge of your destiny and can develop countless projects to help your company succeed. You are free to explore new ideas and bring your imagination to work. In general, this feeling of freedom is the branch that entrepreneurs hold out to.

Sertaç Taşdelen, the co-founder of Faladdin and Binnaz Abla, whose opinions we reached to get, explains the advantages of entrepreneurship while asking a question:

"Being an entrepreneur allows us to see our purpose in the world from a much broader perspective. It brings out our survival impulses and instincts and can test the individual with difficulty and ordeal. Would you rather take the blue pill and stay numb or take the red pill and be free? If I lived 100 more times, I would be 100 times more entrepreneurial!"