How does the desire for wealth affect entrepreneurship?
To help you understand the different ways in which the desire for wealth can affect entrepreneurship, we asked several business experts for their best insight regarding this question. From understanding the value of time to deriving motivation, there are multiple ways in which the desire for wealth can affect entrepreneurship.
Here are 10 ways that the desire for wealth affects entrepreneurship:
- Understand the Value of Time
- Higher Income Goals Lead to More Work Input and Focus
- Factor in Economic Background
- Wealth Can Help and Hurt Entrepreneurs
- Greed Can Cloud Judgment
- Entrepreneurs Have More Flexible Retirement Plans
- Nobody Wants to Live Paycheck to Paycheck.
- Can Cause Poor Decision-making
- Think About the Greater Good
- Derives the Motivation
Understand the Value of Time
The desire for wealth doesn’t have to regard material possessions exclusively. One can picture relative wealth as the ability to choose what we can do. That can mean outsourcing activities we hate (such as ironing shirts), organizing the workspace with proper equipment, or hiring an assistant to limit paperwork.
The desire to afford to do things your way prompts questions about how much my time is worth and how efficiently things are done. And it often triggers reflections like “I can do it better” or “I can use a similar mechanism in my business”. After all, most successful entrepreneurs are efficient and time-conscious in their private lives and often practice this business skill after work.
Michael Sena, SENACEA
Higher Income Goals Lead to More Work Input and Focus
As an entrepreneur, the results you get from your business come from the amount of work and energy you put in. Success with entrepreneurship can come down to your personal motivation and self-discipline. No desire to make more money in business or life can lead to low motivation to work. That’s why most successful entrepreneurs always set high-income goals and do their best to accomplish that goal under a possible time frame.
Valentine Okoronkwo, Passive Secrets
Factor in Economic Background
Poverty inhibits an entrepreneur’s access to primary forms of social capital, such as valuable connections to networks of knowledge (for example, in making effective recruiting decisions that promote growth) or simply funding (particularly money to start-up operations or to use as a safety net in case of a misstep.)
Coming from a low-income family generally means having a distinct perspective. Recent studies also suggest that the psychological repercussions of poverty as a child play a role in entrepreneurship success. A recent study has found that rather than innate or genetically caused personality traits, contextual influences have the most significant influence on risk aversion.
Axel Hernborg, Tripplo.com
Wealth Can Help and Hurt Entrepreneurs
The desire for wealth is one of the biggest motivators known to humans, and while it’s usually associated with being a driving factor in working hard, it can also handicap entrepreneurs who haven’t found success. If you’re bootstrapping your business and finding it hard to generate any revenue, the pursuit of wealth might cause you to look at other non-entrepreneurial avenues. In addition, many would-be entrepreneurs almost certainly haven’t been able to start their projects due to a lack of money.
Sylvia Kang, Mira
Greed Can Cloud Judgment
If a person becomes an entrepreneur for the sole purpose of obtaining wealth, I would argue that there is a good chance that they’ll ultimately fail. Most of the sharpest, most successful entrepreneurs I’ve ever met were not driven by a desire to get rich. Sure, it’s a nice byproduct of the process, but more often than not, they were driven by their competitive spirit and finding purpose in their work.
When people are simply after money, their judgment can get clouded. They make near-term sacrifices for cash that might end up biting them in the butt in the long term. Pursuing riches often allows the tail to wag the dog in business ventures. Again, the desire to get wealthy can be a motivating factor, but it shouldn’t be the only one. When you’re also driven by a fierce competitive spirit to be better than the next guy, chances are you’ll make better long-term business decisions.
John Ross, Test Prep Insight
Entrepreneurs Have More Flexible Retirement Plans
Entrepreneurs have more flexible options and timelines for their retirement plans. This alone is a huge factor in why so many entrepreneurs look for security in starting their own businesses.
It’s difficult to start your career nowadays in an entry-level position that offers retirement benefits–even with an undergraduate degree. Instead of investing your time in your education and a career path that needs to be built up over the years to work for someone else, many are opting to educate themselves on how to start their own businesses for additional independence and flexibility.
When you are in charge of your finances, it gives you the security to plan ahead with much better peace of mind.
Zach Goldstein, Public Rec
Nobody Wants to Live Paycheck to Paycheck
Nobody wants to live paycheck to paycheck. I think that’s what drives many entrepreneurs to strive for financial gain.Having an abundant salary level not only keeps us comfortable in our own lives, but also keeps the economy strong and provides a benefit to society as a whole.
Stephanie Venn-Watson, fatty15
Can Cause Poor Decision-making
The desire for wealth by entrepreneurs causes poor decision-making. For instance, when a particular entrepreneur feels like they aren’t getting enough profit, they might develop temporary measures to increase their profits. As they aim for a more significant profit margin, they are more likely to take desperate measures that might be impulsive and adversely affect the business. Some of these actions that affect the business include unnecessary business loans and other credit debts. Entrepreneurs who have their minds fully fixed on wealth creation mostly have bad debts due to rational investment that doesn’t offer the expected returns.
John Tian, Mobitrix
Think About the Greater Good
It’s not the greed-is-good era any longer. People don’t respond well to those seeking to enrich themselves through financial gain. They respond better to leaders who are more consumed with enriching others. That’s how wealth can affect entrepreneurship. Wealthy people can become fixated on increasing their own wealth. Always convey how your ideas and your products and services help others, and be selfless when addressing your team and talking about your team. People want to hear how you’re doing things for the greater good rather than just for yourself.
Alan Ahdoot, Adamson Ahdoot Law
Derives the Motivation
If the desire for wealth is taken in the right way, it can lead to positivity and motivation of getting the tasks done. When you desire something, your mind wants it. And in this, motivation plays a huge role in being the pathway for your desire to meet your want.
When an entrepreneur desire wealth, they’re also setting standards for their entrepreneurship to make it successful. Some people also say that a wealth mindset can affect the journey negatively. But I highly believe that it depends on you and how you want to put an impact on the journey.
Meera Watts, Siddhi Yoga International Pte. Ltd.