Advantages Of Entrepreneurship

What are the advantages and disadvantages of entrepreneurship?

The advantages of entrepreneurship include the ability to shape one's own business, control of one's own working habits, and significant stock in the venture. Disadvantages include a lack of guarantee of success and the heightened responsibility of owning a business.

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Tim Mbiti eNotes educator | Certified Educator

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Entrepreneurship involves the development of a business around an innovative idea, with the aim of regional or international growth. The entrepreneur in this case will need to find avenues to increase the capital base in order to realize the objective. The entrepreneur is also charged with the responsibility of protecting the idea through measures such as patents in order to capitalize on the venture.

The advantages of entrepreneurship include:

The entrepreneur gets the chance to participate in a venture that they enjoy. This increases the chances of success in the venture since the individual is passionate and dedicated to work for the venture.

Entrepreneurship offers flexibility to the entrepreneur allowing them to participate in family and social activities.

An entrepreneur has the capacity to set a salary that they believe is commensurate to their input and this helps improve the level of motivation to achieve more.

The disadvantages of entrepreneurship include:

Entrepreneurship offers no guarantees with regards to a regular paycheck especially when the business is at its formative stage.

Schedules are highly unpredictable and the entrepreneur will be required to respond to changes in the market or customer requests almost immediately. This may at times force one to work longer hours.

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Entrepreneurship has its share of advantages and disadvantages.

  • Freedom: Being your own boss offers unparalleled freedom in terms of the type of work and the amount of work. As an employee, one has to fulfill the requirements of the employer and work according to the rules set by the employer.
  • Compensation/Salary: An employee works for a certain salary or remuneration package and even if the company is making big profits, only a small portion is transferred to the...

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The advantages of being entrepeneur are many, as well as there are many disadvantages.

For instance, the decision on how much working time must be allocate to the business is entrepeneur's. Also, other great advantage can be considered the freedom the entrepeneur has to implement his business ideas.

But the freedom of making decision of entrepeneur's own can become a great disadvantage if the idea does not represent a success, since there exists no chance to share opinions with other employees.

Other great disadvantage is represented by the lack of health insurance. All the health problems are paid by the entrepeneur. Also, the pension is no longer the contribution of employers, but the entrepeneur's, this fact becoming a great problem since not all the ideas are a real success and paid accordingly.

If the business is not quite well marketed, the lack of information about business can mean the lack of clients and a business without clients fails.

Other important disadvantage can be the cash flow which can become a hugeproblem when the business finance is not well uinderstood and administered.

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