Reasons and Advantages for Becoming an Entrepreneur:
1) You yourself become the boss.
Make all the decisions on your own rather than getting the permission by the approval of all the directors or owners. Plan everything according to your own decision such as selecting the sellers, buyers and partners.
2) Opportunity for greater financial success.
Enjoy all the profit that you have earned by your previous hard work. Employees usually only get the fixed wages / salaries or commissions that decided by their employers.
3) Opportunity to build equity.
Own your own business and the business or equity and assets can be sold or passed to your heirs. Retired employees normally live on a pension.
4) Opportunity to have control over your life and job.
People have more freedom and greater motivations to manage and operate your own business.
5) Ego satisfaction and create opportunity for philanthropy.
To be famous and visible in their community or become membership in various corporate boards, such as chambers of commerce, business awards, community boards and etc. As being a financially successful, you would like to help some of the communities or institutions or charities.
Reference:
South West Ireland Weblog, Reasons and Advantages for Becoming an Entrepreneur, viewed 24th September 2010, http://sohosoloireland.wordpress.com/2009/01/13/reasons-and-advantages-for-becoming-an-entrepreneur/
I do like the idea of becoming my own boss. Without anyone to order me around and without other people's rules to follow. However the pressures of owning your business is another challenge on it's own. The headaches that come with, the pressures that come with it. Everyone is expecting you to succeed.
ReplyDeleteEven though you have advantage of controlling your own life as well as having job security, it is not certain either because taking care of a business can be a challenge and making sure it does not fail is another.
With that said, I agree I would want to own my own business.
In addition to the advantages that owning a business might bring to an individual would be self-esteem. An enriched self-esteem. Knowing that you have created something and it has become successful will do very well in making yourself feel good about yourself.
Since you talk about the advantage of becoming an Entrepreneur then I would talk about the disadvantage of becoming an Entrepreneur.
ReplyDeleteThe first disadvantages would be are you up to the challenges to do all the work without any command and guidance? It may sound good in some point but it can be a heavy workload job because there are several element needed to become an Entrepreneur, those element are motivation, determination, hardworking, social skill, money, leader skill and etc.
In most case, new Entrepreneur can fail because they lack of Experience, Leadership, Motivation, Maturity, and Credibility.
Beside it, entrepreneur also face problem such as no fixed hours working schedule so it could make them too busy or too relaxed depending on their characteristic. Not having regular salary also can become a heavy burden and mental pressure to them because it varies each month depending on their business succession. All those thing won’t be easy for a person especially when there are mouth to feed at home.
The most difficult part would be decisions making. This problem also make entrepreneur crack their head because Experience, knowledge, benefit and lost played a major part in it. Often, a budget plan or strategy need to be done.not to mention the day-to-day activity, business goal, sales goal and etc.the worst thing is if anything bad or good happen then entrepreneur need to face it themselves because they cannot just quit their job .
In other point of viewed, those burden might be acceptable to male but it certainly won’t be easy for the female because their traditional responsibilities as wife and primary caretaker of children. The most common problem face by the female would be Gender discrimination because male think female should be at home, family duties such as children caring, take care of the household, leadership problem because male employee might be reluctant to take command, Lack of access to capital because when women entrepreneurs try to apply for financial help then they are likely to come up against the assumption that “women can’t handle money” from others (Bruni, Gherardi and Poggio, 2004, p. 262) , Lack of Networks as most entrepreneur are male and they might exclude female from their network although this situation had become better in today society.
Reference:
Rob Clark 2007, Entrepreneur Advantages and Disadvantages, EzineArticles.com, viewed 6 Oct. 2010
http://ezinearticles.com/?Entrepreneur-Advantages-and-Disadvantages&id=618160
Vickie Champion 2009, the Many Disadvantages of Being an Entrepreneur, WordPress2.9.2 and K2 viewed 6 Oct. 2010
http://www.vickiechampion.com/wordpress/2009/09/03/the-many-disadvantages-of-being-an-entrepreneur/
Mai Nguyen, Women Entrepreneurs: Turning Disadvantages into Advantages, PreFlight Ventures
http://www.preflightventures.com/resources/WomenEntrepreneursLitSurvey01-2005.htm
Bruni. A, Gherardi. S, & Poggio. B. (2004). Entrepreneur-Mentality, Gender and the Study of Women Entrepreneurs. Journal of Organizational Change Management. Vol. 17 No. 3. (pp. 256-268). Emerald Group Publishing Limited.
Hi girls,
ReplyDeleteFor those who have experienced working with other people, it is common to have thought like “It’s better for me to be my own boss” running in their mind. Some people would decide to stop working with other people and strike out on their own by starting up a small business.
Yes, I do agree with you girls that the best thing of becoming an entrepreneur is he is becoming the boss where he has the freedom of making all the business decision. He would have the absolute control of the business which would never be achieved if he works as an employee of certain business. He also would be able to go to work or take vacations anytime he or she wants. Best of all, he or she would never be fired.
I would like to add in some other advantages of becoming an entrepreneur.
Better relations with other people – an entrepreneur would be able to get in touch with the people of his own caliber. This kind of friendships typically would last forever.
Self confidence – being an entrepreneur, he trusts more in himself which would unlock the ‘fear’ in himself. The success gained from tremendous effort of getting the enterprise up and running would create greater trust and confidence in himself.
Skill and knowledge – the responsibilities as an employee are limited to certain job description. However, as an entrepreneur, he is responsible for everything from research and development up to bookkeeping, In the process of achieving and satisfying these responsibilities, he would be able to gain more knowledge and skills which he would not be able to gain as an employee.
Excitement – an entrepreneur would be able to enjoy the excitement from planning until developing the business. Like what Larry Kersten once said, “[H]ard work often pays off after time, but laziness always pays off now”. By putting all of his effort into the business, he would be able to enjoy whatever he does and eventually, the business would become a success. He would also be able to feel the exhilaration of success himself after all of his hard work.
Despite the benefits of becoming an entrepreneur, there are also some challenges that an entrepreneur would needs to face.
Developing the vision and idea – an entrepreneur needs to look for new ideas to compete with the competitors. He would have to develop the ability to see the opportunities and make forecasts. He also needs to have the ability to transform the opportunities into business plans.
Raising capital – to start a business, high capital is needed
Chance of business failure – poor planning of business would lead to the failure of the business.
Financial risk – there are possibilities of delayed payments from the customers. Sometimes the debts would turn bad.
Global competition – entrepreneur needs to face high competitions as there are many competitors out there competing with each other
Keeping up with industrial changes and trends – an entrepreneur needs to have ability to adapt with the changes. Inability to do so would lead a business into failure
No regular salary – entrepreneur would have to prepare to experience lean months especially when all the financial resources are used and invested into the business
Work schedule – entrepreneur would have to work harder than he would as an employee. Sometimes he also needs to sacrifices more time especially during situations that require them to work for long hours
Time management – an entrepreneur needs to estimate the money and time for a business to become profitable. Poor time management would direct a business into making a loss
References:
Kottapalli K, 10 benefits of being an entrepreneur, Ezine Articles, viewed 8 October 2010, http://ezinearticles.com/?10-Benefits-Of-Being-An-Entrepreneur&id=1057445
Kumar K 2006, 7 daily challenges for every entrepreneur, Rediff, viewed 8 october 2010, http://www.rediff.com/getahead/2006/oct/20entre.htm
Dear Crystaltan and Jeelin
ReplyDeleteYour blog topic “Entrepreneur “is interesting. Here I would like to share to all of guys.
There are many different reasons why people want to become entrepreneur. If you guys want to become entrepreneur of course you may have your own reason. Actually this reason is important that will become your motivation for making your business successful. Anyway, referring by Forbes magazine shows that majority of its reader would prefer to become a billionaire rather than a Nobel Prize winner, a great scientist or famous athlete. Mostly the average people dream about getting rich albeit very few makes any real effort to become one. “There are some people who live in a dream world, and there are some who face reality and then there those who turn one into the other.” By Douglas Everett. Every person want to become a millionaire but how many of them put the right things on the right place referring on the statistics said that “95 percent of new businesses fail within the five year. The top reasons for small business failure are causes as a lack of planning, a lack of differentiation from competition and having a poor marketing strategy. I found an article said, statistic prove that 65% of Millennia’s (born between 1980 and 2000) are interested in starting their own business. Generation X (born between 1965 and 1980) employees tend to be less motivated by promises of overtime pay and are more motivated by personal satisfaction with their jobs. More than 65% percent a young generation age between 14 to19 years old are interested in starting a business, compared with about half of the general public (Kauffman Centre for Entrepreneurial Leadership). As we know that, every task has different challenges for everyone and becoming an entrepreneur is not an easy task. There are several qualities entrepreneur may own to be successful in your business ventures:
1. Common Sense
Consider common sense as the foundation of the entrepreneur success. Common sense is defined as ability to make sound judgments on the issues, which you are encounter in everyday situations. Having a good judgment depends on acquired knowledge and experience. The combination of those will create necessary prerequisites in developing common sense in a person. Common sense allows a person to understand complex issues in simpler terms and get into the core of a problem.
2. Self Confidence
Self confidence is a key entrepreneurial skill for success. It is easy to become demoralized, frustrated and resentful if you lack self confidence. Self confidence is concerned with how people feel about he or she ability. A successful entrepreneur believes in their ability. They do not scared to explore un chartered territories, take risk and take difficult decisions.
3. Creativity
Creativity is the ability to use your insights and come up with new solutions to solve the problems. Get things done in different way or find a totally different approach for conventional things to work together. Entrepreneurs need creative thinking ability virtually in everything. Each new product, each new marketing method, each business decision all these are fertile ground for creative thinking.
References:
http://www.advancingwomen.com/entrepreneurialism/8777.php
http://www.approvedarticles.com/Article/Lifestyle-Entrepreneur-Statistics/2902
As what you had mentioned, being a part of Soho, they are enjoying the freedom of making their own business decisions and becoming their own bosses. Besides, they also gain the stability and control that could never be achieved as a regular employee. One of the advantages is excitement; compared to being regular employees, entrepreneurs enjoy much excitement beginning from the planning stage of the business up to development and realization.
ReplyDeleteMost people who are employed generally feel that they are not being compensated for the work they do. In addition, they must follow the salary structure set by their employers. Entrepreneurs on the other hand earn money that is commensurate to their efforts. Therefore, salary potential can be one of the advantages for being part of SoHo family. This is a big one because when they are entrepreneur they can create a direct relationship between their efforts and their income.
Furthermore, flexibility can be one of the points for SoHo family which having the power to control of work schedules and commitments make the life enviable. They are able to take vacations anytime and spend much quality time with their families or life partner. Being part of SoHo, they can adjust their working period as they like without external pressure from their boss. Therefore, they can enjoy their life anytime they like and doing anything what they love to balance their life. For example, as an employee, they need to waste 8 to 9 hours fixed everyday to work at their office. If they set up their SoHo business, they can choose to work with flexible time as they like.
Independence decision making will be another good reason to set up SoHo business for those people who love the idea of not being answerable to anyone else but themselves. They do not need to listen any comment from their friends or their boss. Therefore they can at most good situation to make their own choice as well.
However, being part of SoHo family, they will always facing high risk of business failure. Therefore, they should aware of those risks. For example, lack of real life experience in running a business. In addition, advantages of having freedom life will also become the disadvantage of being SoHo. They may be having too enjoyable life and last in the end of lazy to work and end up of ineffective work. Besides, the market will be the hardest judge of their entrepreneurial skills, it will be much harder than if they are just an employee of company. As they are trying to make decision of set up their SoHo business, it may be a dangerous decision if the decision making are done wrongly.
In the other hand, having SoHo businesses, they will not have basic or regular salary. As everyone knows that none of the business can earn upon to break even profit in the first few months after the business was being set up. Therefore, for sure those people who planning to set up SoHo business will face financial problem during the process of setting up their business and few months after the business has started.
Another disadvantage will be the administration problem. It is because they set up their own business therefore every decision making should be done by themselves. This is quite a burden and handling such responsibility is quite difficult as every decision which made will directly affect the future of businesses.
What Are the Advantages Of Being Entrepeneur , viewed at 9 October 2010
http://www.wsicorporate.com/article/Advantages_of_being_entrepreneur
Rob Clark, Ezine Articles, Enrepreneur Advantages And Disadvantages, viewed at 9 October 2010
http://ezinearticles.com/?Entrepreneur-Advantages-and-Disadvantages&id=618160
Dawn Rosenberg Mckay, About.Com, Striking Out On Your Own, viewed at 9 October 2010
http://careerplanning.about.com/cs/consulting/a/entrepreneur.htm
From Ngu Thien Wee