Meaning of an Entrepreneur
An entrepreneur is a person who puts together capital and labor and converts his idea into a reality different entrepreneurs in their own ways contribute to the economy of the country some entrepreneurs are self-motivated while some are business entrepreneurs. This gives to various types of entrepreneurs.
Belew that we have explained the advantages and disadvantages of being an entrepreneur.
Advantages of Being an Entrepreneur
The following are the advantages of being an entrepreneur:
- Bridge Gap Between Knowledge and Application
- Converting an Idea Into Money
- Be Your Own Boss
- Alternative to Current Career
- Better Utilization of Skill and Knowledge
- Business Opportunity
Bridge Gap Between Knowledge and Application
An entrepreneur is one who is interested in applying the knowledge acquired through education for the benefit of society i.e., he takes a risk and converts his knowledge into an economic activity and tries to gain maximum out of it.
Converting an Idea Into Money
An entrepreneur brings dynamic creativity and skill and possesses the ability to take calculated risks and convert his innovative ideas into reality. Besides making society more enjoyable he gets economic gain by converting his idea into reality.
Be Your Own Boss
There are some people who like an independent life, possess a high capacity to take risks, and are adventurous by nature. These personal trades encourage an individual to become an entrepreneur and start his own business.
By adapting to innovative ideas an entrepreneur is able to produce a product or service at a low cost. This facilitates the organization to face competition in the market and at the same time provide variety and quality of services to society.
Alternative to Current Career
People with entrepreneurial skills at times are found working for others for reasons best known to them. They are called entrepreneurs.
Out of frustration and Dissatisfaction, they prefer changing their position from employee to employer thus, if an opportunity comes their way people with entrepreneurial skills will have business as an alternative to their present career.
Better Utilization of Skill and Knowledge
Several people possess entrepreneurial skills but are hesitant to use them for society. The benefit of being an entrepreneur is that their creative skill and knowledge can be used for the advantage of individuals and society at large.
Business development is a continuous process in such an environment various business opportunities keep cropping up. People with sight vision and ability can seize such opportunities by tapping the right resources to have personal gain and a better standard of living for society as well.
Disadvantages of Being an Entrepreneur
The following are the disadvantages of being an entrepreneur:
An entrepreneur works for his own business for economic gain but he is not assured of regular positive benefits in other words he has to forgo, his regular income and work on the principle the reward for the risk that he bears may be positive or negative.
For an entrepreneur TIME IS MONEY in self-employment one cannot enjoy. Time as he has to dedicate himself to the business. The schedule of an entrepreneur is always unpredictable and he has to be on his toes all the time to manage time effectively.
In every business opportunity start-up problems do exist due to which one may not gain much at the initial stages. Even in the long run benefits may not be extraordinary.
Considering cost-benefit analysis an entrepreneur may earn profit incur losses or be at break even. Thus an entrepreneur can never enjoy benefits as expected by him.
An entrepreneur is his own boss so decision making is a critical factor. For this he should have a sound decision support system to make the right decision at the right time postponing decisions means postponing events. Unknown risks are the ones that generally put him and his business in trouble.
Entrepreneurship is generally an inherited quality and very rarely is an Acquired skill an unskilled entrepreneur with an unskilled staff will have a tough time in running the business.
CORE COMPETANCE in the accepted and practiced business is critical for the success of an entrepreneur therefore an inexperienced person without entrepreneurial skills cannot manage his own business.
FAQs about the Advantages and Disadvantages of Being an Entrepreneur
What are the advantages and disadvantages of being an entrepreneur?
The following are the points of advantages and disadvantages of being an entrepreneur:
1. Bridge Gap Between Knowledge and Application
2. Converting an Idea Into Money
3. Be Your Own Boss
5. Alternative to Current Career
6. Better Utilization of Skill and Knowledge
7. Business Opportunity.