2017 Aug 16
If you’re a business school student or generally inspired with the idea of setting up your own company, you must be familiar with the glorification of entrepreneurship. There are endless examples of individuals who rose as successful and wealthy entrepreneurs. For instance, we have the classics like Otara Gunewardene as well as the rising stars like Jiffry Zulfer (Founder of Pick Me).
However, such examples have resulted in people romanticizing the life of an entrepreneur. The truth is, behind the scenes of their so called glamourous lives, business owners have many hectic and strenuous days. It’s not all success and celebrations. There is a dark side to being an entrepreneur.
The Untold Truth of Being Your Own Boss
One reason you might wish to set up your own business is to escape from the torture of dealing with a tyrannical boss. Why have someone tell you what to do when you can be your own boss? Reality check: Independence is a privilege that comes at a huge price.
“It is much harder running my own salon than working under someone. As an initially unrecognized brand name, I had to work endlessly to secure my clients. Sometimes I had to work even on public holidays.”
Kanchana Fernando
Founder of Salon Hannah
Additionally, if you’re a fan of iiSuperwomanii and you watch her daily vlogs, it’s very apparent that a good night sleep is quite a rare occurrence for her. Despite her seemingly dazzling life, the inevitable truth is that Superwoman works super hard.
Key takeaway: Being your own boss is a massive responsibility that requires complete dedication of your time. So if you thought you could quit your job, start-up your own business and relax… You would be tremendously disappointed.
Can You Handle The Stress?
According to a study called “Are entrepreneurs touched by fire?”, it was reported that business owners are 30% more likely to suffer from depression as opposed to non-business owners.
“When you settle down and build your client base, things get easier. But until that happens, it’s a constant worry as to whether you can make enough revenue to fund your costs.”
Kanchana Fernando
Founder of Salon Hannah
Yes it’s quite stressful being an entrepreneur. The thought of knowing that everything you invested in could be taken away because of a few bad decisions is frightening. Every day is a calculated gamble.
Key Takeaway: If you are going to set up your own business, know that there will be days where you find yourself asking the big questions: Will I have to sell my car? Should I move back in with my parents? To conquer those days, you will need a will of fire.
Did You Think of All The Barriers?
“Government policies like price controls, taxation and interest rates are ever volatile thus, increasing business risk. You start a business with one policy in play and as you proceed you may find that the policies are changing. Also, you need great tolerance to deal with the Lankan government bureaucracy. Expect to deal with corruption and delays.
The story of funding is not a happy one either. Banks ask for collateral so get ready to mortgage your properties. On the other hand, venture capital and private equity would have made things better. However, these sources of capital are still developing in Sri Lanka.
Finally, the culture in Sri Lanka is such that society does not encourage entrepreneurship as opposed to those in developed countries and even certain developing countries like Indonesia.”
Vajira Kulatilaka
Former chairman of the Colombo Stock Exchange
Key takeaway: Unless you have the strength mentally, physically and financially to overcome these barriers, entrepreneurship might not be your calling.
But honestly, it is not all doom and gloom. Hard work is a given and there really are no short cuts. However, you do not need to remain a sole proprietor forever. Consider finding a business partner to create the synergies you cannot hope to attain alone. Try Ceylon Chambers’ ‘Registry of Small and Medium enterprises of Sri Lanka’. Here you can find descriptions and contact information of businesses you can potentially form a strategic alliance with.
Next, get your friends and family to be there for you (Cue the F.R.I.E.N.D.S theme song). Not only will this bring down your stress levels but it might also be one of the few ways to get around Sri Lankan bureaucracy. If you have connections in government departments, use it to avoid the infamous delays. For those who feel you do not wish to exploit your friends, keep them close regardless. We all need someone to remind us it is going to be ok.
Finally, the dim view of financial support available for start-ups may change for the better in the future. While bank loans may not be the most feasible option, we see hope in rising venture capital and private equity funds.
“The Lankan Angel Network is one of the best sources to obtain venture capital for entrepreneurs. My company, OMAK technologies, benefited from it greatly”
Ehantha Sirisena
Founder of OMAK Technologies
Moreover, there are also other rising organizations like the Emerald Sri Lankan Fund, a pioneering private equity firm committed to providing investments for infant businesses.
To sum up, the objective of this article was not to discourage you from building your dream enterprise. As an entrepreneur, you can create superior business models and products that bring about great change. Also, if you are successful… the financial gain is quite rewarding to say the least.
Nevertheless, the point is that there is no way to jumpstart success. Being an entrepreneur is invariably a difficult task. So, ask yourself if you have what it takes to tolerate and overcome the struggles before you get to the glamour.
