3 Ways Entrepreneurship Has Better Opportunities Than VC
Entrepreneurship refers to when you have a vision, work on it, set up a company, and stick to it. VC or venture capitalists strategize and provide funding to those dreams of entrepreneurs. Recently, during my conversation with Avnish Bajaj, the founder of a venture capital company in India — Matrix India. He said that he thinks if someone is ambitious, they should opt for becoming an entrepreneur.
This got me thinking — how different is it to be an entrepreneur from a venture capitalist?
1. Changing times
It’s an exciting time for India as more and more startups are emerging. The success rate is still on the lower side, but the number of unicorns has increased, which is always good news. During such massive change, the entrepreneurs will be in the middle of it all; the VCs will be at the sideline, supporting it and having access to an overview. If someone wants to build wealth, they should be a business builder, which is the best way to compound wealth.
One of entrepreneurship’s most significant advantages over VC is its autonomy and creative control. Entrepreneurs can shape their vision, make decisions, and steer their ventures in the direction they desire. You can suggest some changes as a VC, but that creative freedom will hardly be there. Entrepreneurs can align their ventures with their values, positively impacting society.
2. Personal growth and learning opportunities
Entrepreneurship is a journey of personal growth and continuous learning. Unlike venture capitalists, who primarily focus on evaluating and investing in ventures, entrepreneurs are immersed in every aspect of their businesses. They gain invaluable experience in various domains such as sales, marketing, finance, operations, and leadership. It helps develop a well-rounded skill set that they can apply to future ventures or professional endeavors.
The challenges and setbacks faced by entrepreneurs become powerful catalysts for growth. They try, fail, and gain more experience, which helps them be resourceful and cultivate resilience.
3. Autonomy and decision-making authority
Entrepreneurship offers a high degree of autonomy and decision-making authority. When building your business, you can set your course and determine the direction of your ventures. While venture capitalists may have the power to influence decisions in the companies they invest in, the ultimate control lies with the entrepreneurs themselves. This autonomy enables entrepreneurs to chart their paths, experiment with different strategies, and pivot when necessary.
The freedom to make critical decisions, such as hiring the right team members, establishing company culture, and setting business priorities, fosters a deep sense of ownership and responsibility. Entrepreneurs are in the driver’s seat, shaping the destiny of their businesses and embracing the risks and rewards that come with it. This level of control allows for agility, adaptability, and the ability to align the company’s actions with its core values and long-term vision.
There is no doubt that venture capitalists play an essential role in funding businesses; entrepreneurs are like a parent. They are responsible for each outcome and will be proud when their business starts spreading its wings, much like a parent. Such a feeling can hardly be felt when you are a venture capitalist because you will have ten other companies to worry about. Obviously, there are other perks, such as creative liberty, decision-making power, and more. However, by being an entrepreneur, you can build your own legacy and contribute to the evolving digital landscape.
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