Entrepreneurship: A Pathway to Financial Prosperity
No one prospers far above certain professional financial perimeters or circumstances without some elements of entrepreneurship
Currently, socioeconomic realities facing Nigerians and many elsewhere globally necessitates the adoption and adaptation of entrepreneurship, which promotes multiple streams of income. This is in view of its proven ability over centuries to serve as a veritable vehicle for survival and escape from the crushing wheels of economic hardship, denial, and suppression.
Entrepreneurship is indeed a key factor in achieving significant financial success and prosperity. This attests to why it has become a premium career path for many individuals who have discovered the secret. In this wise, efforts are made hereunder to explore and adumbrate the essential ingredients that will necessitate the adoption and adaptation of entrepreneurship as a pathway to financial prosperity as well as, explain why it has become a crucial element in achieving exceptional financial success.
There is a saying in Igbo that, “ego aguru onu adighi ezuezu” implicitly, a counted monthly wage is never enough or comparable to multiple earnings from diverse sources of income by an entrepreneur. A veritable example to support the foregoing assertion can be gleaned from Aliko Dangote, the richest man in Africa, and Elon Musk, the richest man in the world. Consequently, the two individuals and other entrepreneurs in their mold deep their fingers into various pies; they have multiple income streams,
involved in various business ventures or
diversified financial portfolio, with investments in different asset classes, such as stocks, real estate, or cryptocurrencies, and several others.
Since entrepreneurs are often involved in so many ventures, they are willing to take calculated risks and innovate, which can lead to significant financial rewards. Innovation and risk-taking are essential components of entrepreneurship, as they allow entrepreneurs to identify new opportunities, create new products and services, dominate or disrupt existing markets and realities.
According to Peter Drucker, “Innovation is the specific instrument of entrepreneurship…The act that endows resources with a new capacity to create wealth.” (Drucker, 1985). This statement highlights the importance of innovation in entrepreneurship and its role in wealth creation.
Further, it has often been said that the worst in life is one lived without carrying anything or breaking anything taken from the Igbo saying, onye onweghi ihe obu onweghi ihe o na akuwa. Invariably, entrepreneurs create value by solving socioeconmic and scientific problems, meeting needs, and providing goods and services that mitigate human existentialism needs. Value creation is, therefore, an integral aspect of entrepreneurship, as it creates demarcation walls between entrepreneurs and non-entrepreneurs and, at the same time, establishes a competitive advantage. Michael Porter corroborated this position when he averred that, “Competitive advantage is created and sustained through a firm’s ability to deliver unique value to its customers.” (Porter, 1985). Thereby, affirming that the importance of value creation by entrepreneurs and their roles in establishing a competitive advantage is sacrosanct in wealth creation.
Entrepreneurs emerge successful by engaging in multiple ventures that create wealth not only for themselves but also for their employees, customers, stakeholders, and communities. Wealth creation is a critical component of entrepreneurship, as it galvanises job creation, stimulates economic growth, and improves living standards. Joseph Schumpeter, corroborated by avering that “the essential point to grasp is that in dealing with capitalism, we are dealing with an evolutionary process… The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers’ goods, the new methods of production or transportation, the new markets, and the new forms of industrial organization.” (Schumpeter, 1942). This statement highlights the importance of entrepreneurship in creating wealth and stimulating economic growth.
Financial Independence
Entrepreneurship can provide financial independence, allowing individuals to pursue their passions and make choices that align with their values. Financial independence is a critical component of entrepreneurship, as it allows entrepreneurs to take risks, innovate, and create value without being constrained by financial limitations. According to Robert Kiyosaki, “Financial freedom is less about making more money and more about having the freedom to make choices.” (Kiyosaki, 1997). This statement highlights the importance of financial independence in entrepreneurship and its role in providing freedom and flexibility.
Scalability
Entrepreneurial ventures can be scaled up, providing opportunities for exponential growth and financial success. Scalability is a critical component of entrepreneurship, as it allows entrepreneurs to increase their revenue, expand their customer base, and create new opportunities. According to Eric Ries, “A startup is a human institution designed to create a new product or service under conditions of extreme uncertainty.” (Ries, 2011). This statement highlights the importance of scalability in entrepreneurship and its role in creating new opportunities and driving growth.
Conclusion
In conclusion, entrepreneurship is indeed a pathway to financial prosperity. It offers a unique opportunity for individuals to create value, innovate, and take risks, leading to significant financial rewards. By understanding the importance of innovation, value creation, wealth creation, financial independence, and scalability, entrepreneurs can create diverse successful and sustainable businesses that drive growth and prosperity.
Implicitly, “No one prospers far above certain professional financial perimeters or circumstances without some elements of entrepreneurship.” This statement highlights the importance of entrepreneurial thinking, skills, and mindset in achieving exceptional financial success.
By embracing entrepreneurship and its core components, individuals can unlock their full potential, create wealth, and achieve financial prosperity.