17 Nov Advantages and Disadvantages of Entrepreneurship
Entrepreneurship is becoming more and more popular in today’s society, as it is becoming easier for someone to come up with idea, and transfer that into an app or a mobile site. The rise of e-commerce is a huge factor in the rise of entrepreneurship. It is becoming a more sought after career, and is attracting men and women alike. Entrepreneurship can be fun and exciting, but there are also many risks that come along with it. We explain some of major the advantages and disadvantages to becoming an entrepreneur.
1. Become Your Own Boss- Being your own boss can be fantastic! You are able to decide your own hours, work schedule and even the work itself! If your company is a startup, there is probably not yet many employees, but if you, for instance, don’t like financials and math, then hire a CFO who can worry about all of that stuff for you! Becoming your own boss also means that you will, in turn, become the boss for some other individuals as well. But, the benefit of starting your own company means that you can hire who you feel will be the best fit.
2. Do It On the Side- Entrepreneurship can start at any time, you just have to be motivated! If you feel like now is not a good time for you to quit your job, and start all over on your own then wait. You are able to be an entrepreneur on the side. If you need the steady salary from your current job, you are always able to make entrepreneurship your night gig! You may not have enough time to launch an entire business while still working at a corporate position, but you are certainly able to buy time. While still at your current job, you can do things like patent your idea, find a few employees that are willing to venture with you, work out legalities and investment proposals.
3. Do What You Love- So many people flock to Entrepreneurship because it allows them to do what they love. Being an entrepreneur means that there are no limitations- create, design and sell whatever you want. It’s a very exciting career path and many people enjoy it because there is never a dull moment. Running your own company not only means that you are always doing what you enjoy, but it also means you have the opportunity to learn from some incredible mentors or employees in your field.
1. No Regular Salary- Running your own company means that you come last in terms of getting paid. Employees, investors, loans, and vendors must all be paid until you get any sort of salary. A lot of times, for the first year or two of starting a business, you will not receive a salary due to the long list of costs that come with starting a business. Unless you factor a salary into any investments you receive, breaking even your first year can be rare. This is a major disadvantage for many people, especially those who have a family to support.
2. Responsibility- Entrepreneurship equals major responsibility! As an entrepreneur, you are not only responsible for the monetary side of things, but you are also responsible for managing any legal issues, making sure sales perform, keeping the company afloat, communicating with any investors or loan officers, ect. As an entrepreneur you need to be very organized, otherwise hire someone who is and can manage all of the above for you.
3. Investments- Starting a business does not come at a small price. There are many factors that play into the costs of company, which is why many entrepreneurs ask for investments when starting their company. Although nowadays many companies do not need a brick and mortar anymore, and function solely online, there are still costs for software, programs and marketing. Investments sound like an advantage-which they can be- but most of the time entrepreneurs cannot get all of the money they originally ask for, or it comes at a big price. Most investors will ask for a stake in the company. Entrepreneurs have to be aware and cautious of this before making deals with anyone.