Aldain Reid, Contributor

Reid

More than two-thirds of start-up businesses which are formed in Jamaica, fail within the first two years. Of those that survive, many struggle to go beyond the five-year mark. These statistics, though troubling, reflect a worldwide trend which has long seen the odds stacked up against the many young entrepreneurs who venture out into the intriguing world of entrepreneurship.

One of the main issues which entrepreneurs often identify as the reason for failure is lack of adequate funding. While I would admit that access to adequate financing is a key determining factor for the success of your start-up venture, this paints only a part of the overall picture. Indeed, there are a number of other critical issues that if addressed, will reduce your likelihood of failure in business.

No Entrepreneur involved

Every day, I meet a number of young enthusiastic Jamaicans with great business ideas. Where possible, I share advice on how to move these ideas into actual business. Some of these persons eventually execute on these ideas, many don't. But rare is the man or woman who has taken an idea, and transformed it into an enduring business, creating employment, value for customers and a reasonable rate of return for the investment.

The truth is, behind every successful venture, lies an entrepreneur. And it is the entrepreneur that will ultimately bring the skills and market vision necessary to enhance the likelihood of success in your start-up.

Starting business for the wrong reasons

Jamaica continues to have the distinction of being a highly entrepreneurial society. A large number of our citizens continue to express a strong desire to start their own businesses. While this is a good signal for potential economic growth, some of the common reasons posited by persons who want to start business, is cause for concern. Examples of the sentiments I've heard include; 'I want to make lots of money', 'I'm tired of having to answer to my boss' or 'I'd like to have more free time and flexibility'. If these are your primary drivers for getting into business, think again.

Here are a few good reasons to get started;

Passion, belief and love for what you intend to do. Of course, this must be backed up by proper research to justify that the market actually needs the product or service that you are so passionate about.

You crave independence and are very adept at taking the lead when an innovative solution is needed.

You have a genuine love for your fellowman, and demonstrate this in your interaction with others. You have an ability to deal comfortably with all types of individuals.

You possess an abundance of drive, determination and a positive attitude. You're not easily defeated by failure, have a propensity to learn from past mistakes, using these lessons as tools for business improvement.

Next week: More on start-up failures.

Aldain Reid is a serial entrepreneur and currently serves as the president of the Young Entrepreneur's Association of Jamaica. He may be contacted via his entrepreneurship blog at www.aldainreid.com