What Is Entrepreneurship? Benefits & Challenges in 2026

Entrepreneurship means launching a business venture anchored in a unique idea, new business model, or innovative product.

Entrepreneurs start businesses for different reasons, but for a majority of them—between 61% and 69%—launching a business felt like they were moving toward something they wanted, according to Shopify’s entrepreneurship research. 

In this article, learn what entrepreneurship is, plus the benefits and drawbacks of the journey, with tips from entrepreneurial leaders and small business owners.

What is entrepreneurship?

Entrepreneurship is the process of starting, managing, and scaling a business. It involves combining innovative ideas with skills and vision to develop new products, services, or concepts that create value for customers. 

Individuals 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. 

Successful entrepreneurs are key players in economic growth and job creation. In 2023, the year of most recent data from the US Census Bureau, there were 8.3 million US businesses with paid employees. 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 economic development 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

• Achieving financial security
• Gaining control over your time and lifestyle
• Accelerating growth and skills

Here are some of the benefits of becoming an entrepreneur:

Achieving financial security

Although entrepreneurship may be perceived as risky, a Shopify survey found that business owners in the US are almost twice as likely to say that entrepreneurship lets them feel more financially secure than having a traditional job. 

For Becca Millstein, cofounder and CEO of tinned fish brand Fishwife, part of that security comes from having no limit on her business’s potential earnings.

“By far my favorite thing about entrepreneurship is the feeling of limitless potential,” Becca says. 

“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.”

In the early stages, you may receive no salary or a low salary. But having control of your own destiny means you’re no longer hoping someone else will offer you a raise. You’re limited only by your efforts and the success of your business venture.

Gaining control over your time and lifestyle

When you pick entrepreneurship, you choose your own adventure. You’re not in a 9-to-5 following a specific schedule. Instead, you can design both your day-to-day and overall future.

This freedom offsets some of the intense effort that’s required to build and run a business. A Shopify survey found that, in the US, nearly twice as many people said employment takes more effort than entrepreneurship (46% versus 24%).

For Peter Dering, founder of travel accessories company Peak Design, control over his schedule is a major benefit of entrepreneurship.

“There’s not much that feels more freeing than being in charge of one’s own time,” Peter says on an episode of the Shopify Masters podcast. “More than anything else, that’s what I wanted.”

Razvan Romanescu, a serial entrepreneur who has launched brands like Nailboo under his holding company, Underlining, agrees. When thinking about his career, he wanted something that gave him flexibility, so he could 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,” he says on Shopify Masters. “Being able to work from your phone or computer or wherever you want is also very appealing to me.” 

Accelerating growth and skills

Startup life can move quickly, and many entrepreneurs find themselves needing to learn new skills on the fly 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. 

That’s how it worked for Haley Pavone, founder and CEO of shoe brand Pashion Footwear. 

“I truly see the company as having raised me,” Haley says on Shopify Masters. “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. 

“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.”

Challenges of entrepreneurship 

• Getting started
• Burnout
• The transition from maker to manager

Like any other career, entrepreneurship offers disadvantages and challenges. Some entrepreneurs may struggle with:

Getting started

One of the biggest challenges of entrepreneurial ventures is getting started. Aspiring entrepreneurs can get caught in the trap of thinking they need to have all the answers before launching a brand.

“I think that’s where a lot of people get stuck, or why they don’t start a business, is they think they have to have everything figured out from the get go,” Michelle Shemilt, founder of undershirt brand Numi, says on Shopify Masters. 

“There’s always going to be a gap between where you are now and where you want to be. The more you’re learning and developing, the better you’re going to become.” 

While aspiring entrepreneurs may feel uncertainty, not getting started can also lead to regret. A Shopify study found that 57% of founders who waited before starting their business wished they had started sooner. 

However, starting is more within reach, with 86% of entrepreneurs saying that ecommerce platforms have made it easier to start than 10 years ago, Shopify reports. Additionally, 67% say AI tools make entrepreneurship more accessible. 

For example, you can use Shopify’s AI store builder to design and build an ecommerce website with plain-language prompts—no design or coding experience required. 

Once your store is live, Shopify Sidekick, an AI assistant built into your Shopify store, can also help you tweak your theme, create product listings, and understand your store analytics.

Burnout

Entrepreneurs may have to work long days, including weekends and holidays when necessary. Your personal life may suffer—especially in the early days.

Sometimes the hardest part of entrepreneurship “is not about the business,” says Danielle Close, founder of skincare brand My Skin Feels, on an episode ofShopify Masters. “It’s really the personal side that comes with it. 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.

Laura Thompson, cofounder of natural skincare brand Three Ships, says she’s seen founders feel pressure to build quickly, which can lead to burnout. 

“That’s just not realistic,” she says on Shopify Masters. “Sustainable growth for both the business and the founder doesn’t get talked about enough.”

Here are a few ways business owners have avoided burnout:

Have a designated day off

At one point, Scout Brisson, strategic advisor and former CEO of nonalcohol aperitif brand De Soi, wasn’t protecting her time or taking care of her health. Now, she sets aside a specific day where she doesn’t work.

“I have a pretty hard and fast rule for myself of not working on Saturdays,” she says on Shopify Masters. “Not saying that I’m working every single weekend, but protecting Saturdays protects my peace, too.” 

Remove apps from your phone

Removing apps that make you think of work can be beneficial. Chelsea Branch, founder of claw clip brand Kōv Essentials, tackles burnout by blocking TikTok, an app she used to make her company go viral. 

“I think it’s really important to work in moments of reset where you genuinely don’t allow yourself to work,” she says on Shopify Masters. 

“[I block] the TikTok app, where I can’t even go on it [and scroll] my own feed. At the end of the day, if I’m doing that, my mind is pulling back to work in some way.” 

Keep work and life separate

Ellen Bennett, founder of kitchen gear company Hedley & Bennett, does not mix work and her personal life.

“I compartmentalize my efforts and my energy,” she says on Shopify Masters. “When I’m working, I’m working. When I’m with my kids, I’m with my kids. 

“I’m not trying to do both things at once. That’s when I really break down. If you’re trying to do a Zoom call with your small child right here, this is not going to happen.” 

The transition from maker to manager 

Aspiring entrepreneurs often start businesses because they’re passionate about a product, but 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.

For Gloria Hwang, founder and CEO of bike helmet brand Thousand, this shift means asking herself how she can build a good work environment for her employees. 

“These days my biggest challenges are people problems,” Gloria says 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, founder and CEO 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. 

Sandra Powers Murphy, founder of footwear company Scarlett Chase, says it can be a 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,” Sandra says on Shopify Masters. “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.”

Numi founder Michelle 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. 

“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

• Small business
• Scalable startups
• Creators
• Social entrepreneurship
• Intrapreneurship

There are several different types of entrepreneurship, with varying motivations and goals, including:

Small business

Small business entrepreneurship means running a company with fewer than 500 employees, according to the Small Business Administration (SBA) Office of Advocacy. 

Small businesses can be local-level ventures, such as florists, bakeries, and restaurants, or they can cover a wider area, like ecommerce stores. 

The SBA defines a small business as one that is independently owned and operated and is not a big player in their field. 

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.

Characteristics of entrepreneurs

Here are a few characteristics that can help you reach success as an entrepreneur:

• Curiosity:Curiosity can push you to want to create solutions, but it can also help you when things are difficult, according to Joanna Griffiths, founder and president of leakproof underwear brand Knix. “I would say to founders, lean into curiosity and optimism, because you’re going to need it at every step along the way,” she says on Shopify Masters.
• Flexibility: Being flexible can help you avoid getting stuck when things aren’t working out. Cassidy Caulk, founder of foldable shoe brand Kindred Label, has plans A through F to “pivot really quickly,” she says on Shopify Masters. 
• Persistence: Being a business owner means you’ll face rejection and other challenges, but Haley of Pashion Footwear says that her persistent nature is one of her strengths. “My teammates tell me [I’m like] a weasel: [If] you knock me down, I just shoot up out of another hole somewhere else.” 
• Passion: Since being an entrepreneur can be emotionally and physically tiring, Ricky Lee Jones, founder and CEO of outdoor gear brand Stratus, says the passion can help you push through. “When you’re doing something that you love […] there’s a strong drive to have fun and build out a business,” he says on Shopify Masters.