By Stephen DeAngelis
Today, in the United States, we’re celebrating National Lemonade Day. The Holiday Calendar staff explains that National Lemonade Day honors young entrepreneurs. They write, “The origins of this holiday date back to the days when kids would set up stands and sell lemonade in order to make some pocket money.”[1] The National Day staff adds that National Lemonade Day is an opportunity “to teach youth about setting up their own lemonade stand and running their own company.”[2] Journalist Dayna Winter asserts, “Parents who encourage their kids to start their own business at a young age enable them to get a head start on life. Whether they aspire to land a deal on Shark Tank or take their designs to New York Fashion Week, it’s never too early to get started in entrepreneurship. Today’s lemonade stand could be tomorrow’s Pulitzer.”[3] The world needs entrepreneurs. Which is one reason that tomorrow the whole world celebrates entrepreneurs.
According to Liza Kate Mirelman, Director at Postboxed Limited, “World Entrepreneurs Day is celebrated on August 21st every year. This day is all about celebrating the spirit of entrepreneurship and the important role that entrepreneurs play in driving innovation, creating jobs, and fostering economic growth. … World Entrepreneurs Day was first celebrated in 2010 as an initiative of the United Nations. The day was created to raise awareness about the importance of entrepreneurship in promoting sustainable economic development and reducing poverty. Since its inception, World Entrepreneurs’ Day has become a global celebration, with entrepreneurs from all over the world coming together to share their stories, exchange ideas, and inspire others to pursue their own entrepreneurial dreams.”[4] As noted above, entrepreneurs are needed in every country — whether they are developed or developing.
Frederic Meunier, a Private Sector Development Specialist with the World Bank’s Doing Business project, and his World Bank colleagues, Laure Le Gall and Reem Hashad, write, “Entrepreneurship plays a crucial role in economic development. Understood as the activities of an individual or a group of individuals aimed at initiating an economic enterprise, entrepreneurship creates jobs, fosters innovation, improves productivity.”[5] Nevertheless, they note, “Disparities exist between the economies worldwide when it comes to entrepreneurship.” They draw this conclusion from the World Bank’s Entrepreneurship Database which has been tracking formal global entrepreneurship since 2006.
We know that wealth is distributed unevenly, both within countries and around the world. We also know that it takes capital to start a company. Therefore, it’s no surprise that more entrepreneurs are found in higher income countries. Meunier and his colleagues report, “Wide disparities exist in entrepreneurial activity, measured by average rates of new business density, across income groups. Higher income countries tend to have higher levels of new business registrations (see figure below). In 2022, high income economies had about 7.3 new companies per 1,000 adults. In contrast, low-income countries showed a substantially lower prevalence rate of entrepreneurial activity relative to all other income groups. Low-income economies had only 0.4 new companies per 1,000 adults. This reflects the huge potential that exists for low-income economies to increase formal entrepreneurship activities and associated new business density.”
Source: Entrepreneurship Database
Meunier and his colleagues also report that global economies experienced a rebound in new business registrations in 2021. They write, “The year 2021 experienced a surge in the formation of new companies, whereby 92% of economies witnessed an increase in the number of new business registrations. This substantial increase is a stark contrast from the previous year, where only 40% of economies experienced a rise in new business establishments. This 40%, which occurred in 2020 during the Covid-19 pandemic, represents the second lowest level of new business formations after the decrease experienced during the 2009 financial crisis.”
If you are thinking about starting your own business, executive coach Amy Chambers has a few suggestions. She writes, “No matter how gifted or driven you are, starting a business is hard, taxing work. … I’d heard the statistic that 90% of all small businesses fail, but I thought starting my business would somehow be miraculously easy — it wasn’t.”[6] She indicates there are four things she wish she had known before starting her own business. They are:
1. Self-discipline is harder than you think. Chambers writes, “Owning a business means you’re the boss. There are no assignments to turn in and no deadlines to meet. No one writes a performance review for you. However, this can be very difficult for some — and I had to learn this unexpected lesson the hard way.”
2. Pick the right clients and partners. According to Chambers, “Not everyone is going to be a fit for your services and products, and you’re not going to be a fit for everyone else’s needs, either. One mistake I made in my first year was taking on anyone who would have me as a client or a partner. I’ve since parted ways with my business coach, two vendors and two clients. People who suck your energy or drain your time with nonsense shouldn’t be on your calendar.” How do find the right clients? Find the clients who have a problem you can fix. One of the last books written by the late Harvard Business School professor Clayton Christensen was entitled Competing Against Luck: The Story of Innovation and Customer Choice, coauthored by Karen Dillon, Taddy Hall, and David S. Duncan. In the book, they discuss the Theory of Jobs to Be Done. According to the book’s introduction, that theory helps companies understand their “customers’ struggle for progress and then [creates] the right solution and attendant set of experiences to ensure [they] solve [their] customers’ jobs well, every time.” In other words, the most successful companies solve problems.
3. Find ways to add human interaction into your day. Chambers notes that, without proactively seeking human interaction, being an entrepreneur can be a lonely journey. Being a loner is generally not the way to become a successful entrepreneur. If you can build a team, do it. John Banovetz, Senior Vice President and Chief Technology Officer for 3M Research and Development, writes, “Game-changing innovations are not created in a vacuum. They require vision, imagination, and the ability to see what doesn’t exist today. I have seen time and again that this only really happens when a truly multidimensional team comes together to share ideas and collaborate. The more diversity in terms of geography and gender, culture and education — the more likely disruptive innovation can prevail.”[7]
4. Building a network of your peers is imperative. There are many reasons that people attend conferences and workshops. One reason is to connect with people. Chambers notes, “Initially, I was hesitant to meet other authors and coaches. To some degree, I saw them as competition. I’ve since had a complete change of heart. … Networking with others who are doing exactly what you’re doing (and doing it well) can only help you, not hinder you.”
Mirelman concludes, “World Entrepreneurs Day is a day to celebrate the spirit of entrepreneurship and the important role that entrepreneurs play in driving innovation, creating jobs, and fostering economic growth. Whether you’re an entrepreneur yourself or simply someone who appreciates the value of entrepreneurship, there are many ways to celebrate this day and to support the entrepreneurial community. So, take the time to recognize the achievements of entrepreneurs around the world, and let’s continue to build a brighter future through innovation and entrepreneurship.”
Footnotes
[1] Staff, “National Lemonade Day,” Holiday Calendar.
[2] Staff, “National Lemonade Day – August 20, 2023,” National Today.
[3] Dayna Winter, “The Grown-up Wisdom of 8 Kid Entrepreneurs,” Shopify, 3 March 2023.
[4] Liza Kate Mirelman, “World Entrepreneurs Day,” Postboxed Blog, 17 June 2024.
[5] Frederic Meunier, Laure Le Gall, and Reem Hashad, “Global entrepreneurship trends in 5 charts,” World Bank Blogs, 23 May 2024.
[6] Amy Chambers, “I Wish I Knew These Four Things Before Starting My Own Business,” Entrepreneur, 18 May 2024.
[7] John Banovetz, “Diversity and Collaboration Are Essential Drivers for Disruptive Innovation,” U.S. News & World Report, 25 April 2020.
