Some people see a problem and wonder why no one is fixing it. Then there are entrepreneurs. These people see a challenge and ask: How could I make this better? They pursue unique ideas, create new business models, and introduce innovative products into industries of all kinds.
Here’s what entrepreneurship means, the benefits and drawbacks of this journey, and the different ways to pursue your entrepreneurial dreams.
What is entrepreneurship?
Entrepreneurship is the process of starting, managing, and scaling a business. It involves combining innovative ideas and vision to develop new products, services, or concepts that create value for customers.
Those who choose this path, called entrepreneurs, embrace skills and traits like resilience and problem-solving. The term also includes many other types of self-employment, like online content creators, consultants, and even inventors.
Entrepreneurship in the US economy
Successful entrepreneurs are key players in the growth of the economy. In 2023, the year of most recent data from the US Census Bureau, there were 8.3 million US businesses with paid employees—and the vast majority, 7.1 million, were very small, with 19 employees or fewer.
Add in solopreneurs, who have no additional paid employees, and the impact is even more significant: The US has 29.8 million solopreneurs, and they contribute $1.7 trillion to the economy. That represents 6.8% of total US economic activity, according to a 2025 US Census Bureau report.
Benefits of entrepreneurship
- Control your own time and lifestyle
- Accelerate your growth and skills
- Achieve theoretically unlimited income
Entrepreneurship is on the rise. According to Shopify data, the number of Shopify store owners who’ve made a first sale has increased sevenfold since 2018. Here are some of the benefits of choosing to become an entrepreneur.
Control your own time and lifestyle
When you choose entrepreneurship, you choose your own adventure. The corporate ladder is no longer relevant. You’re not stuck in a 9-to-5. Suddenly your options are wide open, and you can design both your day to day and your overall future. Your new business venture can be a part-time side hustle, one of several income streams, or a passion that you work on every single day.
“There’s not much that feels more freeing than that feeling of being in charge of one’s own time,” says Peter Dering, founder of travel accessories company Peak Design, on an episode of the Shopify Masters podcast. “More than anything else, that’s what I wanted. To be my own boss.”
Several other founders cite freedom as one of the main drivers in exploring entrepreneurship. That includes Razvan Romanescu, serial entrepreneur and cofounder of beauty-wellness brand Underlining.
“My main thing was, how can I make money, but also have freedom?” Razvan says.
For Raz, freedom is the key to both enjoying his daily work and arranging his lifestyle so he can travel while working. “When you figure it out on your own and keep unlocking new levels, you get a nice bit of excitement and satisfaction. Being able to work from your phone or computer or wherever you want is also very appealing to me,” he says.
Accelerate your growth and skills
Startup life can move very quickly, and many entrepreneurs find themselves needing to learn new skills just as quickly to keep up. This rapid pace means you may grow as a worker, and a person, far faster than you would in a traditional role.
“I truly see the company as having raised me,” Haley Pavone, founder of Pashion Footwear, says on Shopify Masters of her experience from ages 20 to 29. “After nine years as an entrepreneur, it’s like a dog years situation: It translates to seven years for every one year, as far as your personal character arc as a human.”
Pashion has made her the businesswoman and the person she is today, Haley says. “I think back to little baby CEO Haley at 20 and I see just how much has changed. This company has molded me into a much smarter, more resilient person than I was before.”
Achieve theoretically unlimited income
Forget merit-based raises and angling for promotions. When you’re an entrepreneur, you can blow the lid off any artificial limit to your earnings. That’s what inspired Dan Demsky, then running a video agency, to pivot and develop wool apparel brand Unbound Merino.
“I used to go to bed at night feeling like my business is stopping because I’m going to bed. Whereas for my buddies with ecommerce businesses, that cash register’s ringing all night because the work they did to get it out there continues to work for them, Dan says on Shopify Masters. “I thought, I need to find a way to get into product.”
In the early stages, entrepreneurs may receive no or low initial salary as they spin up their entrepreneurial ventures. But having control of your own destiny means you’re no longer hoping someone else will offer a raise. You’re limited only by the number of hours in the day and the success of your venture.
“By far my favorite thing about entrepreneurship is the feeling of limitless potential,” says Becca Millstein, cofounder of tinned fish brand Fishwife. “In working for a corporation I felt I had a real ceiling over my head. Now, I have the ability, autonomy, and power to bring any of my dreams to life. If my team and I are willing to work hard, I truly believe we can make anything happen.”
Challenges of entrepreneurship
Like any other career, entrepreneurship offers disadvantages and challenges. Some entrepreneurs may struggle with:
Burnout
Entrepreneurs may have to work long days, including weekends and holidays if necessary. Your personal life may suffer—especially in the early days.
Sometimes the hardest part of entrepreneurship “is not about the business. It’s really the personal side that comes with it,” says Danielle Close, founder of My Skin Feels, on an episode of Shopify Masters. “You do have to be prepared not to have a personal life.”
Still, there’s a fine line between putting in the hard work necessary and overworking yourself to the point of burnout. Without the structure of an office job, it’s easy for work to creep into every hour of the day.
“It’s probably everyone’s rite of passage to have burnout at some point, but please try and avoid it if you can, because it doesn’t serve your business,” Danielle says.
Setting boundaries helps you maintain balance and protect your relationships. Maybe you close your laptop by 8 p.m. each night, even if there’s more work you could do. Or a Thursday night happy hour with friends becomes your weekly non-negotiable.
“Burnout is so prevalent,” says Laura Thompson, cofounder of natural skin care brand Three Ships. She’s seen many founders get caught in the hype of overnight successes and feel pressure to build extremely fast—with some pushing themselves so hard they ended up leaving their businesses altogether.
“That’s just not realistic. That’s not the path for most companies,” Laura says. “Sustainable growth for both the business and the founder doesn’t get talked about enough.”
The transition from maker to manager
Aspiring entrepreneurs often start businesses because they’re passionate about a product—not so much about running all-hands meetings or delivering feedback about a mismanaged project. The shift from maker to manager is big and sometimes messy.
“These days my biggest challenges are people problems,” says Gloria Hwang, founder of bike helmet brand Thousand, on Shopify Masters. “How do I retain great folks? How do I create good career progression? How do I give feedback to people who aren’t great about taking feedback? There’s always a billion things happening with people, and you’ve got to learn those skills.”
Lindsey Carter, the founder of activewear brand Set Active, similarly finds people management to be one of the more difficult parts of her job.
“When someone asks, ‘What’s the hardest part of your job?’ it’s managing my employees,” she says on Shopify Masters. “It’s a balancing act of making sure that you’re promoting them and helping them learn and grow, but also managing when the expectations aren’t being met.”
Entrepreneurs who hope to scale their businesses must accept that people management will become a significant part of their job as they grow, Lindsey adds. She reminds herself: “I signed up for this. I knew going into being an entrepreneur that if my company was going to be successful, that this is how my life was going to be.”
Loneliness
As the old saying goes, “It’s lonely at the top.” All the long days and hard work can feel overwhelming, and founders can struggle finding the right people to commiserate with.
“It can get really lonely when you’re trying to figure out the right thing to do,” says Sandra Powers Murphy, founder of footwear company Scarlett Chase. “Sometimes your spouse or your significant other might not want to hear about it that much, so when you’re thinking through things it’s really nice to have some other sounding boards.”
Michelle Shemilt, the founder of Numi, which makes sweat-proof base layers for women, recommends seeking out fellow founders—whether it’s a formal group or one or two other entrepreneurs who can relate.
“If I could turn back the hands of time, I would’ve gotten involved in entrepreneurial communities earlier,” Michelle says on Shopify Masters. “You learn so much through conversations with other entrepreneurs—and they don’t have to be in your same line of business, because we’re all facing the same problems.”
Types of entrepreneurship
There are several different types of entrepreneurship, with varying motivations and goals for their businesses, such as:
Small business
Small business entrepreneurship includes business ownership at a local level, such as florists, bakeries, restaurants, gift shops, or ecommerce operators. These companies may focus on serving their communities rather than large geographic areas, and often rely on a traditional business plan and strategy to ensure sustainability. Another significant portion of this category is services businesses like advertising firms, design agencies, writers, and artists.
Scalable startups
Scalable startup entrepreneurs are growth-oriented from the start, aiming to build a business model that’s expandable—like digital products, software-as-a-service (SaaS), apps, and ecommerce. Startups may seek venture capital to fund rapid growth.
Creators
The creator economy refers to a type of business run by online content creators—YouTubers, TikTok stars, influencers, comedians, artists, community builders, podcasters and more—who monetize their audience engagement through paid partnerships, ad revenue, affiliate marketing for brands, or subscriptions. More than 200 million people comprise the global creator economy.
Social entrepreneurship
Social entrepreneurship focuses on specific social and environmental causes, and it can include nonprofit organizations, charities, and for-profit social enterprises. Social entrepreneurs apply business ownership and entrepreneurial methods to address social, cultural, or environmental issues, often measuring entrepreneurial success by social outcomes rather than just financial performance.
Intrapreneurship
Within a larger or established organization, employees adopt an entrepreneurial mindset and act like founders to drive innovation using company resources. Intrapreneurs develop new products and services while mitigating their personal financial risk.
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What is entrepreneurship FAQ
What is a simple definition of entrepreneurship?
Entrepreneurship is starting, managing, and typically expanding a business. It involves combining innovation, skills, and vision to develop ideas that create value.
What are the 4 types of entrepreneurship?
Four types of entrepreneurship include small business, scalable startup, intrapreneurship, and social entrepreneurship.
What is an entrepreneur?
Entrepreneurs are people who build or operate their own businesses. Many entrepreneurs begin with a business idea that taps into a market opportunity, and it also includes self-employed service providers or content creators like writers, illustrators, influencers, and marketing consultants.
