Entrepreneurship and entrepreneurship are all the rage. In every finance or economics video we hear about it. The truth is that personal and business entrepreneurship is the source of wealth in many countries. But it is still true that the success rates of ventures are very low. Therefore, today we will know the unique perspective on entrepreneurship and new businesses of Gustavo Mirabal Castro, a financial advisor and serial entrepreneur.
Entrepreneurship is the buried treasure of the modern world. And like any treasure hunt, there are false maps, death traps, and the simple inability to achieve it. And out of hundreds of treasure hunters, only one can take the prize. This is what entrepreneurship is like…
Entrepreneurship in the modern world is a mixture of innovation, determination, brute force, stubbornness, and lots and lots of luck. For Gustavo Mirabal Castro, success is hard work, perseverance, and some luck. Talent is important, but it only matters if you put hard work into it.
SME failure rates reach 80% in 5 years and 90% fail before 10 years. Entrepreneurship is the seed of micro and small enterprises that then become medium-sized companies if they manage to survive.
That is why today we will know the opinion of Gustavo Mirabal Castro on entrepreneurship and new businesses. We will also know some of the secrets, not so secret, of Gustavo Mirabal’s success. Without further ado, let’s get started.
Is every new business a entrepreneurship?
The short answer is no. There are many businesses that are based on existing business models, or on buying and selling products.
Entrepreneurship goes far beyond a company. There are those who say that every venture becomes a company, but not every company is an entrepreneurship.
The truth is that not every entrepreneurship becomes a company. Especially in Latin America, entrepreneurship remains informal. That is why they are businesses that have not become companies. Only some of them that manage to grow are formalized and follow the upward path.
Why do entrepreneurship and new businesses fail, according to Gustavo Mirabal?
As we mentioned before, SMEs fail by 80% in the first 5 years. Entrepreneurships have a much higher failure rate, as some never become small businesses.
The first thing we should know is that entrepreneurship is a process of trial and error. Many of the ventures will fail, but the entrepreneur does not fail until he gives up. Entrepreneurship is a lifestyle where various ideas are tested and then can become businesses.
Carrying out these ideas and executing them systematically can be considered an undertaking. But there are certain conditions to consider that a simple idea is an entrepreneurship such as:
- Offer an innovative product or service
- Expected to grow rapidly
- The business has a clear objective beyond generating money
- Planning is a fundamental part of entrepreneurship
- Risks are taken, as it is not a common business
- It has a clear differentiating element, associated with the innovative product or by the innovative approach to a particular need
- The entrepreneur as a leader is an important and unique factor of entrepreneurship.
The entrepreneur is a person with very particular characteristics. A entrepreneur makes innovation his mantra and his impulse. He is a person who sees everywhere opportunities to meet needs. But in addition, the entrepreneur is capable of a sustained effort over time to achieve his objectives.
Therefore, below we will tell you about the psychological profile of the entrepreneur.
The psychological profile of the entrepreneur and its importance for entrepreneurship
The entrepreneur requires to persist in the pursuit of his objectives and the achievement of his goals special characteristics. Some people possess them naturally, while others who want to undertake need to cultivate them.
These attributes help you persist in your idea despite obstacles and stay optimistic despite setbacks.
Below, we give you a brief description of each of the characteristics and experiences that differentiate and make an entrepreneur special:
- Innovation: They add a different component either to the product, service, processes or attention that essentially alters the final product or service, generating a differentiating element. They are attracted to the new.
- Independence: Entrepreneurship requires independence. If we are guided by what others say, we will not depart from what everyone else does.
- Autonomy: They can make decisions for themselves. They listen to advice, but they make their own decisions.
- Internal locus of control:
- Risk propensity: They tend to seek to do things differently and look for innovative ways. By moving away from traditional ways, they do not feel discomfort with risk. On the contrary, they may feel euphoria about the risk involved.
- Tolerance to ambiguity: They can handle themselves in situations of uncertainty and insecurity. They don’t believe in external control and are prone to believe they are in control of everything. Therefore, they can handle undefined situations better.
- Need for achievement: They want to show that they can do things better and be recognized for it.
- Self-efficacy: They constantly evaluate their performance and optimize it to achieve better results. They are obsessed with doing things better and better.
- Optimism: This is the final and indispensable ingredient for an entrepreneur. Being able to see the bright side makes it easier for them to face the difficulties of entrepreneurship.
Conscious reaffirmation of psychological attributes to achieve entrepreneurial success.
These characteristics are intrinsic to personality but can also be worked on consciously. If we want to be successful entrepreneurs, we must reinforce the characteristics of an entrepreneur.
Life experience can also be fundamental for entrepreneurship. Next, we’ll look at which experiences help people become entrepreneurs.
Transformative experiences for entrepreneurship.
Researchers have discovered that there are life experiences that encourage entrepreneurship. If we want to undertake some of the experiences that we will point out later, they can be of great help. In other words, we can look in our experiences that increase our entrepreneurial possibilities.
- Diversity of work and academic experiences:
- Closeness to other entrepreneurs and people with similar characteristics.
- Work interruptions or unemployment increase the chances of being an entrepreneur:
- Are people prone to or seeking the “flow” mental state
For Gustavo Mirabal to promote the psychological attributes of an entrepreneur. In addition, trying to live the kind of experiences that favor entrepreneurial success can make a difference. This is one of the secrets of success in Gustavo Mirabal’s venture.
Later we will tell you other secrets of this avid Venezuelan entrepreneur.