Golden rules of Entrepreneurship you need to know in 2022

The recent IPO listings of unicorns like Zomato, Nykaa and PayTm has once again shifted focus on Entrepreneurship as a viable professional choice for graduating students.Covid-induced recession has shaken the notion of job security.Since the current generation puts an emphasis on risk-taking, skill development, meaningful employment and work-life balance, starting one’s own company gives them an opportunity to experience just that. Even colleges are going the extra mile to induce incubations for possibly ‘the next big thing’ worked upon by their students. In this context, EDHEC Business School in partnership with LIVE – a vocational training institute chaired by First Lady Brigitte Macron and supported by BernaudArnault – Chairman & CEO, LVMHinaugurated their newest campus related to Entrepreneurship & knowledge transfer – The Jean Arnault campus.

As we step into 2022, let us look at some of the key aspects of starting on your own:

Authenticity: One should be able to define clearly the purpose behind their business. The business idea should excite its founder. Setting-up a new business is a long-term process. The effervescent energy of a founder helps overcome ‘routine’ days. Starting from 2007, India witnessed a mushrooming of e-Commerce companies. Unfortunately, a big chunk of these organizations splurgedmajority of their investments on fancy ‘nothings’, squandering a once in lifetime opportunity to create something viable. Once the funds dried up, they had very little to offer in terms of survivability. A founder must have clarity of their reason of existence.

Flexibility: In its prolonged stay, Covid has shown a mirror to many an industry. Established businesses have gone kaput because they could not adapt to the new normal. It is clear that rigid business models will lag behind the competition and eventually shut down. Successful entrepreneurs have an ear to the ground. They are quick in their decision-making. Many of them would not hesitate to pivot their businesses in view of the changing ground realities.

Sustainability:As the worldwakes up to growing concern of climate change, imbibing sustainability through green solutions within one’s businesses isneed of the hour. Businesses are vying to become carbon neutral. Customers are growingly conscious of the carbon footprint they leave behind. Businesses that ignore these indicators stand to lose outfor being old-fashioned.

Peer Learning: Entrepreneurs need handholding during their initial lift-off phase. Often, angel investors or start-up accelerators provide this mentoring. The importance of networking among entrepreneurs is highly under-rated. Sharing best practices or pitfalls related to one’s business can provide much needed guidance to a new entrepreneur. Being in the same boat, most of these entrepreneurs become first customers to each other’s businesses.

Funding opportunities: Just like one’s expertise in own business, an entrepreneur should also be aware of the different avenues of raising funds. Thanks to applications of Blockchain, there have been many new avenues for influencing new funds. Initial Coin Offerings (ICO), Special-purpose Acquisition Company (SPAC), crowdfunding etc. can assist entrepreneurs raise crucial funds at the right time.

Author is Nilesh Gaikwad – Country Manager at EDHEC Business School, France &can be reached at nilesh.gaikwad@edhec.edu

 

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