Here are the top 7 reasons why people become entrepreneurs:

1- Compelled
2- Apprentice to Master
3- Visionary
4- Hobbyist
5- Invitee
6- Accidental
7- Franchisee

As I have begun researching companies, I find it interesting and sad that many companies both large and small seek to minimize or conceal their founding history. Perhaps they fear that they risk appearing too “small” or that their beginnings were not grand enough. But the beginnings of companies is what interests me the most and I hope to collect enough stories to make this site worth reading.

See below for a more detailed explanation of the 7 top reasons why people start businesses. As I have observed entrepreneurs, I would say that people who start businesses can trace the reason for having started a business back to 1 or more of the following 7 reasons. Some entrepreneurs, especially serial entrepreneurs may fall in more than one of these categories.

1- The Compelled Entrepreneur

This is someone who started a business because they had to. The reasons people fall in this category are myriad. For example, Harland Sanders, the founder of Kentucky Fried Chicken (now KFC), needed money and couldn’t find it anywhere else so he went on the road selling his now famous chicken. Other entrepreneurs simply couldn’t get along in a traditional office setting so they started their own enterprises. In other cases, someone who was making a large salary has been fired or decided to leave work for health or family reasons but still needed some income (think Martha Stewart).

2- Apprentice to Master

This group of people is sometimes the most predictable. After someone has been employed at a company long enough for them to realize that they could do as good of or a better job than their employer they leave to start their own. They often suppose that running a business is a very easy thing to do especially given the fact that they have been making the owners of their company money that could easily be going into their own pockets. So with a little planning and sometimes without, they declare their apprenticeship over and start their own related business. Love Wal-Mart or not, Sam Walton, the founder of Wal-Mart falls into this category. Having spent some time at JC Penny as a management trainee, he learned some of the principles of retailing. After a stint in the armed services, Sam was ready to shed his life as an apprentice and started his own company. Like most entrepreneurs, Sam started with modest means. The rest is history.

3- Visionary

This is someone who saw an opportunity and made something happen. They correctly observed market trends and business opportunities and seized the moment. One such entrepreneur is Jack Nadel (founder of Jack Nadel International, one of the US’s largest promotional product distributors). At the end of World War 2, Jack had an opportunity to purchase a surplus of grey wool material. He found a customer that needed blue wool material. Jack found a way to die the wool in China (more than 50 years ago when importing from China was almost unheard of). He went on to found one of the most successful promotional product companies and is considered by many as one of the most influential entrepreneurs in the space. He has written several books, visited with the President of the United States, and has been interviewed by numerous reporters. Jack at 84 years of age is active in the blogosphere.

4- Hobbyist

The hobbyist’s work is a labor of love. These often grass root endeavors lay claim to some of the best innovations in product manufacturing. They start of making or doing things to meet their own needs only to be approached by friends and family members with requests to expand. Some notable entrepreneurs in this area include the founders of Todaysmama.com. These founders started by compiling a list of things that could be done in their area for very little or no costs. That has expanded into several publications and a very popular website.

5- Invitee

Someone in this group probably could have started his/her own business without the aide of others. However, this person is usually someone of vital importance to a business plan from any of the other groups of entrepreneurs. This might be someone with specialized skills, knowledge, influence, means, etc. Sometimes these people have money or influence that can be brought to bare for achieving the company’s goals. I would also group those who inherit businesses started by influential or successful family members in this group.

6- Accidental

This is someone who started a business quite by accident. They were trying to do something that hadn’t been done and found a way to do something that nobody expected and then found a way to capitalize on it. These are also those who didn’t set out to be entrepreneurs but somehow found themselves being just that. Or maybe these people just wanted to be able to do something for their own convenience and discovered a new process or a new idea with market merit. Often times these people never expected to be successful in their venture but by pure coincidence, or call it fate, start some of the county’s most successful companies.

7- Franchisees

This group of people is sick of the rat race. Most usually come from high pressure corporate jobs and need to do something else. They often choose a business that they can afford that they feel they would enjoy doing.

If you are one of these entrepreneurs or know of someone who has started a successful business, please leave a comment below and I will get back to you.