Introduction: Why Be an Entrepreneur?
Entrepreneurship is a way of life. Being entrepreneurial means being able to identify, start, and maintain a viable and profitable business, particularly a small enterprise. People spend most of their lives working for someone else. Some people eventually rise to positions of wealth and power, while the rest languish in unchallenging and low-paying jobs. On the other hand, there are a select few who strike out on their own; rather than work for others, they put up their own enterprise. You may ask: “Why should I risk my resources in an unpredictable business when I could hold a stable job with a permanent tenure and an assurance of regular monthly income without any risk?” In other words, why be an entrepreneur rather than an employee? Entrepreneurship has its own rewards, as well as its risks. Having your own business has tremendous rewards, but be sure to weigh prospective returns against potential risks and losses.
Rewards of Entrepreneurship
Unlimited Opportunity to Make Money – When you have your own business, you will most certainly have unlimited potential to earn money. How much money you earn depends on the time and effort you put into your enterprise. Successful entrepreneurs have earned their wealth and prestige through hard work and having the right product for the right market at the right time.
Be Your Own Boss – As the sole proprietor of your business, you make the decisions for your enterprise and take full responsibility for them. The quality of these decisions will translate into either gain or loss for your business. Being your own boss means you are in control of your future. You have a better grasp of what you want to be.
Tap Your Creativity – A business usually starts out as an idea. You will have the opportunity to harness this creativity and turn your idea into products and processes.
Overcome Challenges and Feel Fulfilled – Starting a business is, by itself, an accomplishment. Running a business tests an entrepreneur’s capability in securing and managing resources. How well a business turns out depends on the owner’s ability to face challenges and overcome them.
Risks of Entrepreneurship
Risk of Failure – Small businesses are prone to risks, and the possibility of failure. A single wrong business decision can bring a business to bankruptcy.
Unpredictable Business Conditions – A small business is vulnerable to sudden changes in the business environment. In a fast-paced industry, a small firm may not possess the financial capability nor the organizational capacity to respond adequately to new opportunities and their concomitant problems. Long Hours of Work – A prospective entrepreneur must be ready to spend most, if not all, of their waking hours immersed in the business. Also, family time and personal affairs may be jeopardized. Unwanted or Unexpected Responsibilities – The entrepreneur may eventually find themselves saddled with management responsibilities they did not bargain for.
- Process Flow: Starting A Small Enterprise
- Self-Analysis: Are You Entrepreneurial?
- Considering Other Factors
- Determining Your Product/Service Line and Type of Business
- Writing a Business Plan
- Determining Your Financial Requirements
- Seeking Sources of Capital
- Choosing the Site/Location of Your Business
- Registering Your Business
- Hiring/Training Personnel
- Getting Your Business Started
Analysis: Are You Entrepreneurial?
A successful entrepreneur possesses key characteristics that help their business grow and thrive. Extensive research by the Small Enterprise Research and Development Foundation reveals 10 Personal Entrepreneurial Characteristics (PECs) that lead to success. These are grouped into what are called the Achievement Cluster, the Planning Cluster, and the Power Cluster. Take a look at what…
