10 life-changing benefits of being an entrepreneur

Starting a business is a major commitment, but it has the potential to transform your life. Before you dive into learning what it takes to be an entrepreneur, take a moment to identify your “why”—what drives you to take the leap and start your own business.

This blog post will explore 10 ways being an entrepreneur can change your life and how to get started on the right foot.

1. Freedom and independence

Professional autonomy is a powerful motivator for escaping the traditional 9-to-5, W-2 lifestyle. It’s also by far the most common reason people cite for becoming entrepreneurs. For HubSpot’s 2024 State of Entrepreneurship report, survey participants were asked why they started their businesses. A total of 45% cited “being their own boss” as the reason.¹

The ability to make your own business decisions is transformative. As an entrepreneur, you can build your business around your values and surround yourself with like-minded people. You have ultimate control over every choice, from the products or services you offer to the schedule you keep.

2. Unlimited earning potential

When you work for someone else, your employer’s pay policy limits how much you can earn. Recent data suggests that nearly 90% of companies use formal salary structures, limiting earning potential for the vast majority of employees.²

While there’s no guarantee that entrepreneurship will boost your salary, economic data shows that self-employed professionals have higher incomes and experience more growth than paid employees.³ By age 55, their income is about 70% higher than that of equivalent employees.

Entrepreneurship also creates more opportunities for wealth-building. While employees only own what they earn, entrepreneurs have access to their business’s full income stream. When managed well, this income can support significant long-term growth.⁴

3. Pursuing your passion

This was one of HubSpot’s top two benefits of entrepreneurship, with 21% of survey respondents citing it as a primary motivator.¹

Like other independent workers, entrepreneurs seek out work that instills a sense of purpose and aligns with who they are as individuals. They value personal authenticity and the opportunity to pursue a purpose.⁵

As an entrepreneur, you can bring your ideas and values to life with each decision you make. Your work moves you toward goals that matter, helping you feel more motivated.

4. Continuous learning and growth

Owning a business provides you with endless opportunities to develop professionally, an increasingly important goal for people across industries.

A recent Gallup poll reveals that 42% of workers would like more opportunities to upskill, but money and time are real barriers.⁶ When you choose entrepreneurship, you gain the freedom to prioritize skills development.

Entrepreneurship also requires constant growth and builds your resilience, as you learn to solve problems as a leader. Each decision-making process is an opportunity to refine skills such as creative thinking, problem-solving, and conflict resolution.

5. Creativity and innovation

Creativity is crucial for personal and professional fulfillment, yet many employers fail to provide employees with opportunities to think creatively. Although people are equally likely to pursue creative endeavors at work and home, most feel their creativity gets more support outside of work.⁷

Entrepreneurship makes creativity not only possible but necessary. One study showed creative entrepreneurs drive more innovation and generate new ideas within their companies.⁷ As these business owners become more alert to opportunities and new ways of thinking, they train their minds to be creative. They become more inventive, and their businesses perform better. Over time, they can become even more creative.⁸

6. Flexibility and work-life balance

The recent pandemic has made people increasingly aware of the importance of work-life balance, and there’s no going back. In Randstad’s 2025 Workmonitor survey, for the first time in the report’s 22-year history, work-life balance surpassed pay as a job motivator.⁹ Yet some surveys report that 60% to 66% of Americans feel they don’t have an adequate work-life balance.¹⁰

Of the many benefits for entrepreneurs, control over work-life balance may be one of the most under-appreciated. Almost three in five entrepreneurs report having a better balance since leaving traditional employment, despite 20% of business owners working over 50 hours a week.¹¹

The key is flexibility and control. Keeping a new business afloat is a time investment, but entrepreneurs often have more autonomy in when, where, and how they work.

7. Making a positive impact

Among the many benefits of being an entrepreneur, the ability to make a difference is one of the most meaningful. Feeling that you make a difference can increase your motivation, engagement, and overall job satisfaction, according to the American Psychological Association.¹²

Entrepreneurship provides countless opportunities to make the world better. If you identify a problem or need in your community, you can create a business that is designed to address it. Whether you sell clothes for people of all sizes or provide off-leash exercise for dogs, you can make your neighbors’ lives easier.

Creating a business also allows you to support your community economically. Small businesses created 20.2 million new jobs between 1995 and 2023. This represents 61.1% of all new jobs created during that time.¹³ Those jobs support families, enrich communities, and provide opportunities that wouldn’t exist otherwise.

8. Building a legacy

According to a recent survey, 54% of Americans want to have a positive impact on the world. Approximately 36% want to leave something behind for a loved one, and 35% want their families to be in good financial standing when they pass.¹⁴

The business you create can be the legacy you leave behind. It can live on as a valuable part of the community, meeting a key need or providing neighbors with a simple pleasure that makes life worthwhile.

Some entrepreneurs leave the business itself as a legacy, giving family members an income and a valuable asset. In one SoFi survey of mothers who own businesses, 48% expressed an intention to leave the company to their children.¹⁵ Many involve their children in the business from a young age, teaching skills while preparing for the future.

Whether you plan for family members to inherit your business or not, building a company can help you leave a financial legacy for whoever you choose to receive it.

9. Networking and connections

Building a strong professional community is one of the most valuable rewards of entrepreneurship. It enables you to enhance your business skills, acquire new insights, and gain perspectives you might otherwise have overlooked. The insights you gain can strengthen your organization and give you a richer view of the world at large.

Global networking is particularly important. Today’s world is increasingly cross-cultural, and small businesses have a seat at the table. In fact, according to the U.S. Small Business Administration, 97% of organizations that export to other countries are small businesses.¹⁶

As an entrepreneur, you can build connections and do business across borders. You can expand your cultural knowledge and provide valuable services that connect your company and community to others across the world.

10. Personal fulfillment

Of the many benefits of entrepreneurship, a sense of personal satisfaction is among the most lasting. It comes from building something from the ground up, achieving a goal, and living a purpose that feels right.

Research shows that people who feel more fulfilled are more resilient and cope more effectively with stress.¹⁷ They take better care of themselves and are more concerned with the well-being of others.¹⁸

No one claims that entrepreneurship guarantees you’ll develop these qualities. But if you’ve been holding back because you think personal fulfillment isn’t a good enough reason, it might be time to reassess that position.

Prepare to thrive as an entrepreneur

The online Master of Business Administration (MBA) from the University of Kansas can help you realize the benefits of being an entrepreneur. It teaches the skills entrepreneurs need to build strong organizations, lead diverse teams, and face challenges in an increasingly complex business world.

KU’s online MBA offers a connected and collaborative student experience. Learners build relationships with peers from all walks of life, drawing on those alumni networks to pursue a variety of goals. Admissions are open to students who meet select academic requirements, with a focus on potential over test scores.

Start building the skills you need to create a thriving business. Schedule an appointment with a KU admissions outreach advisor today, and take your first steps toward reaching your entrepreneurial goals.