Advantages and disadvantages of entrepreneurship

  

Date Posted: 11/19/2012 3:21:49 PM

Posted By: jullieflavia  Membership Level: Gold  Total Points: 2188

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Advantages of entrepreneurship.
i. Entrepreneurs have independence-own boss.
Going into a personal business will enable one to become a boss of his or her own and in this capacity, work towards achieving his or her specific goals.
ii. Profits realized goes to the owner.
All the profits realized in the business all goes to the business owner who is the entrepreneur. He or she is able to enjoy all the profits and use them as he or she wishes.
iii. Freedom to use own ideas.
An entrepreneurs being an own boss, has the freedom to use his or her own ideas in executing certain plans and administration of the business fully. He or she decides on what to do, how to do it and when to do it. Moreover, he or she has the freedom to influence what is to be done by other employees. He or she can also have the freedom of ideas when it comes to innovation and creativity.
iv. Personal satisfaction.
An entrepreneur is satisfied when he or she enjoys all the profits that come in the business. His or her living standards will also be improved through this and will generally feel satisfied in doing his business.
v. Enjoy social status.
Most entrepreneurs enjoy high social status in the society especially when they succeed in their businesses. It is possible that the entrepreneurs rise to higher levels in social ladder much better when they get profits or succeed in their businesses.
vi. Self-employment.
Entrepreneurship provides self employment for entrepreneurs. Apart from providing employment to others, an entrepreneurs also becomes self employed thereby reducing the unemployment gap.


Disadvantages of entrepreneurship.
i. Risk of business failure.
Entrepreneurs are sometimes not certain of success and sometimes, business failure can cause an entrepreneur to get discouraged. It is not obvious that all entrepreneurs will get to succeed in the businesses.
ii. Long working hours
Most entrepreneurs work for long hours especially in

the early stages of implementing the plan of the business. This is always a major challenge in entrepreneurship.
iii. Income is varied and uncertain.
It is sometimes hard to estimate the income that you will be able to get in a particular day or even in a month. Uncertainty in income is a major challenge in entrepreneurship.

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