Entrepreneurship is the activity of setting up a business or business taking on financial risks in the hope of making a profit. It mostly launching, designing and running a new business that is initially small.
There are many types of entrepreneurship. These include small business, for example, carpentry and hairdressing. Large company entrepreneurship, social entrepreneurship, and scalable startup entrepreneurship.
They are normal economic dynamic and profit-oriented. They encourage innovations that can benefit the business.
Pros of Entrepreneurship
- There is a chance to participate in a venture they enjoy
There is a room of one venturing in an area of interest. It is not fixed that the person should operate a certain type of business. This increases the success in the desired area since the individual is passionate and dedicated to work in that area.
- They are flexible
They do not have a fixed time of operation hence they allow the owner to participate in other social activities in the family.
- The entrepreneur can set his or her salary
This will motivate the entrepreneur to work hard as he or she will be aiming towards getting a certain amount of money hence improving the working of the business.
- It encourages responsibility
When an entrepreneur is working in his own business will be responsible as he or she will understand that anything that comes out of the business will affect him or her negatively hence responsibility.
The entrepreneur has the freedom of operating the business when he or she wants as he or she will be aiming towards getting a certain profit hence will enjoy the freedom of running the business.
Cons of Entrepreneurship
All the liabilities in the business will be met by the owner. There is no sharing in case of a loss hence it is the risk as it may end up closing the whole business down.
There is a lot of work that will have to be done by the entrepreneur as he operates the business alone hence it is very tedious.
- The entrepreneur must be patient
Most entrepreneurs do not earn in their first year of operation hence it calls for the person to be patient enough for him or her to earn from the business.
The entrepreneur must consider the issue of taxation as the government will have to collect tax from them whether they are making a profit or not hence the entrepreneur should put into consideration the amount to be taxed by the government.
- Funding problem
The entrepreneurs may be faced with the challenge of funding the business and yet they may not be able to access loan facilities from other financial institutions hence not starting the business.
Entrepreneurship is an exciting world where your imagination and ideas are free in the wild. Every idea becomes an opportunity to find success in life.
However, the entrepreneurs are bound to work for many hours and there is a risk of finance whereby there is no guarantee that you are going to make a profit.
Entrepreneurship is taking over the world as people do not want to be managed by someone else over their lives.