Impact on Individual
In this final posting on benefits that your business can have we focus on the benefits to the entrepreneur and his family. We have thus shown that starting a business benefits all stakeholders. Proceed then and start your business and dedicate it to the glory of God and in the service of mankind.
1. Wealth Creation
Significant wealth was created by entrepreneurial bankers for their benefit and for the benefit of their families. The profit motive is a genuine, legitimate and beneficial purpose for entrepreneurial activity. There is nothing sinister or absurd about it. Entrepreneurs assume significant calculated risks in building their organisations and therefore should reap the rewards that emanate from the success of the endeavour in as much as they would assume the resultant loss if the venture failed.
Entrepreneurial bankers assumed significant risk to their financial security, professional reputations and personal relationships, as they ventured into the uncharted waters of entrepreneurship. It is only fair and equitable for them to be adequately compensated within the reward system for the risks taken. It is easy to complain about the wealth that has accrued to these and other risk-taking bankers, while enjoying the comfort of our risk free lives. An investment principle states that the higher the risk assumed, the higher the likely yield. It should not surprise us then when those who took the greatest risk benefit from it.
Some entrepreneurs expanded into other industries. The most notable ones are Kingdom Bank and Interfin Merchant Bank founders, who spread their wings into varying industries like hotel and leisure, furniture manufacturing, brick making, farming etc. This is a normal outgrowth of entrepreneurial activity as new opportunities are detected and explored. It should neither be criminalised nor frowned upon, but rather be applauded.
Another form of wealth creation by entrepreneurial bankers emerged from high paid executives and investors to whom entrepreneurs redistributed wealth through stock options and employee share schemes. Investors who acquired shares in new start- up banks created massive wealth for themselves when these were publicly listed. A non-banking example is Strive Masiyiwa, whose Econet Holdings is reputed to have created about ten billionaires out of its employees. That is empowerment.
2. Personal Development
When an entrepreneur detects an opportunity despite the environmental uncertainty, he speculates as to its potential for commercialisation. If he manages to commercialise that opportunity and grow it to maturity, he realises his potential: a sense of destiny and accomplishment. It completes and fulfils him as a person. The entrepreneurial process develops the entrepreneur as a person and helps him shape a view of the world. This personal development process makes the entrepreneur a better person who contributes meaningfully to societal development. Entrepreneurship creates avenues for self-development, individual achievement and self actualisation.