If freedom and independence are the first levers of the desire to undertake, the reality on the ground requires constant management of uncertainties. Financial risks, isolation or social protection: what do the figures reveal about the daily lives of managers and how can you prepare well to sustain your activity?
Entrepreneurship is not an easy task
Entrepreneurship is not an easy task. Before getting started, managers are fully aware of the risks they are taking, both personally and professionally. So why make this choice? Many do it to become independent or because they want to develop an innovative idea.
The AGIPI-OpinionWay barometer on the risk-taking of entrepreneurs and self-employed people allows us to better understand their daily lives. This study was carried out on a sample of 803 self-employed people, business leaders, managers and artisan-merchants at the head of private sector companies with 0 to 9 employees.
To undertake is to take a risk
During their career, some employees seek to emancipate themselves and find a new professional dynamic; entrepreneurship then appears to them as the royal road. If they get started for various reasons, their main motivation remains the desire to develop an activity on their own and to control all the logistics (customers, suppliers and organization). They are 41% to declare that this is the first benefit of their adventure.
The freedom to organize their time as they wish is also a key factor. This is a point considered essential to flourish professionally without putting their personal life on hold. Many of them are young when they take the plunge: although sometimes lacking professional experience, they do not hesitate to take risks to set up their structure.
However, despite considerable advantages compared to employee status, they are 92% to declare that undertaking represents significant risk-taking. Overall, they are aware of the issues and what this may mean for their future. On a daily basis, almost all of the managers interviewed (98%) admit that such a risk requires considerable perspective, because launching into entrepreneurship requires a global vision of the business.
What are the risks to consider before getting started?
Most of the time, the only risk anticipated when starting a business is financial. However, he is far from being the only one: being an entrepreneur means exposing yourself to a multitude of difficulties. They are 66% to have only anticipated possible financial problems before starting. Many plan for matters relating to money as well as social and health coverage, but very few think about psychological and social risks.
The main fears expressed are:
- Not having regular remuneration each month: 71%
- Manage your social security coverage alone: 68%
- Manage your retirement contributions alone: 67%
- The cost of charges compared to turnover: 66%
- Having a salary lower than that of an employee: 64%
- Experiencing unpleasant surprises related to cash flow or personal finance management: 58%
As this barometer shows, entrepreneurs do not anticipate problems of isolation or the imbalance between professional and personal life sufficiently in advance. However, these subjects are not trivial. Less than 50% of them think about this type of risk in their daily life, considering that the permanent issue remains essentially financial.
Control risks by being prepared
Considering risks is one thing, but you have to be able to avoid them by anticipating them. For the leaders interviewed, effective prerequisites are necessary to stay the course, even in difficult times. This is essentially based on strong motivation and excellent knowledge of the profession, supplemented by in-depth reflection and market research.
Transparent and rigorous financial management is an integral part of this anticipation. Even though these prerequisites may seem obvious, they are essential to ensure the sustainability of the company.
To properly protect yourself, an entire organization is necessary. The leaders surveyed advise above all to surround yourself with the right people. Whether professional or personal, an entourage involved from the creation allows you to be supported at the slightest blow. On an individual level, the entrepreneur must, like any citizen, provide appropriate social protection.
To deal with difficulties, managers mention various savings and insurance tools (life insurance, savings accounts, pension/work stoppage, death insurance). These prevention measures should be a priority to deal with low pensions, drops in income or the ups and downs of life. All risks benefit from being taken into account, including everyday concerns, so as not to endanger the company and its manager. Today they are 70% to consider that they are well protected overall thanks to their savings plan, their insurance and their assets.
How to protect yourself?
Generally speaking, entrepreneurs remain relatively confident in the face of potential risks. They believe they are able to react appropriately and are 82% to declare that not preparing or thinking about these issues is very reckless.
Being an entrepreneur certainly involves going through moments of stress – such as declines in activity – but for the majority it remains a formidable adventure, capable of bearing fruit in the long term to the point of making you forget the risks at the start.
