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What are some the pros and cons of opening a small business?

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yacel0762 | Valedictorian

Posted August 13, 2012 at 1:37 AM via web

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What are some the pros and cons of opening a small business?

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rrteacher | College Teacher | (Level 1) Educator Emeritus

Posted August 13, 2012 at 1:52 AM (Answer #1)

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Small businesses, depending on size, require little capital to start. A small business owner can rapidly respond to market changes and to the needs of customers, which can be easier to determine as small business owners have direct contact with people who buy their products. A major benefit of a small business is that a small business owner may feel a certain degree of independence, i.e., they are their own bosses. Small business owners also reap the benefits of any success their enterprise has, and they make the decisions for themselves. This degree of responsibility appeals to many small business owners, especially those who began by working for someone else. 

On the other hand, small business owners often have to make considerable investment in their enterprise to make it work. Many small business owners take out multiple mortgages on their homes and borrow large amounts in small business loans in order to raise the capital needed for startup or to get through the first years of business. Additionally, even though small business owners have no boss as such, they are directly responsible for dealing with customers, which can be very daunting. Obviously, no guarantees exist that a small business will work, and when they are unsuccessful the results can be devastating for entrepreneurs and their families. Finally, small business ownership takes a great deal of work, usually involving much longer hours than working for someone else.

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jesseldridge | Salutatorian

Posted August 13, 2012 at 5:02 AM (Answer #2)

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As there are two sides of coins, everything has two sides. Thus small business has also two sides. One is good and second is bas side. The good side involves some advantages that small business offers such as Small business owners are more likely too have high incomes. Small business owners are usually not tied down to any assured schedule. They have more control over when, where, and how they work. In small business, one is able to incline more towards things he really enjoy doing and will like what he does as a result. On the other side, owning a small business involves a great deal of risk because they stand to loose personal assets if the business fails. They must deal with taxes, healthcare issues, and loads of paperwork. Starting a small business can mean that you may go some time or even a few months without seeing a profit.

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