Measures of an Entrepreneur’s Success

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Other measures of an entrepreneur’s success

Because of different entrepreneurial personality, there are many different types of entrepreneurs with different personal objectives and owner’s motivations which can result in diverse measures of an entrepreneur’s success. Bridge and O’Neill (2013, pp180-181) believe that the main owners’ motivations are lifestyle, comfort-zone and growth motivations.

Based on the lifestyle motivations, the first measure is that the business has become a part of an entrepreneur’s life. In this condition, the owners are working for the lifestyle they want and the business can be one part of these entrepreneurs who live to practice instead of running the business for living. If entrepreneurs is running a firm as their part of life without any special reasons, people can consider they are successful entrepreneurs. For example, Jimmy Lin, as a famous actor in China, also becomes a well-known professional racing driver who is the first one to be salaried in Taiwan and repeatedly won the car races in the international matches. For Jimmy, he do not care about the returns in the car racing and dedicated all his passion and life in this field because racing car is his personal interest and hobby. Jimmy does this business for practicing his one part of life instead of earning money or live which has make himself more happy. Viewed from this angle, Jimmy is an successful entrepreneur.

Based on the comfort-zone motivation, the comfort such as objective is reached can be the second measure of an entrepreneur’s success. For these entrepreneurs, they cares more about sufficient returns from their business for a comfortable life. In their perspectives, the satisfied and happy feeling is more important than the economic rewards and when the comfort-zone is obtained, at least in the eyes of these entrepreneurs, the owners can feel and recognize themselves as successful entrepreneurs. For example, Szaky, the founder of Terracycle has operated a small business for more than ten years with good situation, his friends think he can expand his company for more profits which can make Szaky more successful. But Szaky considers that he has reached his goal of comfortable life which has made himself feel happy and successful (Preston 2000 ).

As for the growth motivation, small firm growth do become a measure which has been mentioned in the professionals’ model part. However, small firm static and termination stages also can be another two measures of an entrepreneur’s success. Growth is one of the seven stages of business which include idea, preparation, inception, static, growth, decline and termination (Bridge & O’Neill 2013 pp.256-260). A business does always change after it is formed and every stage should happen in appropriate time which is chosen by business owners. What’s more, because the owner-managers can represent its small firm and have enough control power, these owners can determine to grow or not grow for their personal reasons. An an example, for many owners, business growth can be more complex, time-consuming, risky, costly and thus they prefer to reaching a comforted level such as static state rather than expansion. It indicates that not only the growth stage can be the measure of an entrepreneur’s success, other stages also can be the measures.

For example, survival is probably the main concern of many small firms. If the business can provide them with enough profits to justify their investment of time and money in it or meet their objectives, these owners may choose the static stage as the its business state. What’s more, for some owners who established their companies with the intention that business should have a limited life, when they achieved their goals such as gaining enough money until they retire, termination at the due time can be a sign of success for the entrepreneurs themselves. Just like the story of Harmor. He finished its company which has operated well for more than fifty years because he has earned enough money and reputation and wants to retired for a happy late-life.

In conclusion, small firm growth is not the only measure of an entrepreneur’s success. When looking primarily at the business part, small firm growth do become the main measure of success. However, the owners’ success of small firms also can be the business success which highlights the importance of owners’ motivations in defining the concept of an entrepreneur’s success. As a result, the business proprietors’ model indicates that business becoming owners’ part of life, reaching comfort like objectives, termination at the due time with owners’ intention and choosing static stage when business is operating with anticipated benefits also can be another four measures for an entrepreneur’s success.

Reference list

Bridge, S & O’Neill, K 2013, Understanding enterprise: entrepreneurship & small business, 4rd edn, MPG Books Group, Bodmin, London, Britain

Preston, J 2000, How should entrepreneurs measure success?, viewed 25 May 2015,

Todrin, D 2012, Seven ways help ensure your business success, viewed 24 May 2015,