You have heard of the success story of Bill Gates, Sir Richard Branson, Steve Jobs and Google's co-founders. You admire them. You want to be an entrepreneur, too.
Remember Milton Friedman’s words? There is no such thing as a free lunch. Entrepreneurs pay a high price for their ventures. Here we will examine the dark side of entrepreneurship.
They are a numbers of risks entrepreneurs must confront, such as:
- Financial risk - not all ventures are successful
- Career risk – loss of employment security
- Family and social risk – competing commitments of work and family
- Psychic risk – psychological impact of failure on the well-being of entrepreneurs
When entrepreneurs’ work demands and expectations exceed their ability to perform as venture initiators, they are likely to experience stress. Stress can also result from a basic personality known as “type A” behavior. People with “type A” personality exhibit following characteristics:
- Chronic and severe sense of time urgency.
- Constant involvement in multiple projects subject to deadlines.
- Neglect of all aspects of life except work.
- A tendency to take on excessive responsibility, combined with the feeling that “only I am capable of taking care of this matter.”
- Explosiveness of speech and a tendency to speak faster than most people.
Entrepreneurs may have inflated ego. Here are four characteristics that may hold destructive implications:
- Overbearing need for control
- Sense of distrust
- Overriding desire for success
- Unrealistic optimism
For those who are ambitious to become entrepreneurs, make sure you don’t become the Darth Vader of entrepreneur world.
Reference: Kuratko & Hodgetts, Entrepreneurship – Theory, Process, Practice, 7th edition