Commerce: Advantages And Disadvantages Of Being An Entrepreneur

If you are an entrepreneur you become your own boss and the master of your own destiny
You can earn more than just a salary in the form of profits
Flexible working hours that you set yourself
Your income is related directly to your effort and is not fixed as most salaries are
You are the leader i.e. you become the boss. In comparison when you are working for someone else you are essentially their subordinate.
You can choose to start a business in a field you find interesting i.e. pursue your won passion. You can only focus on what interests you.
You can spend more time with your family and friends
Running your own business can be exhilarating and exciting
You can create your own organisational culture
You can sell what you want to sell
You can choose members of your own team/ your own employees instead of sticking up with people you hate
It gives you financial independence
It’s a learning opportunity and you can discover new fields and acquire more skills
It gives you prestige in the community as a businessman/businesswoman
Allows you to build your personal brand
You become an inspiration to others
You have guaranteed job security as you no longer have to worry about being fired
Gives you an opportunity to change the world

It takes a lot of effort to be successful
Can result in burnout
The pressure of running a business can take a toll on your mental health
Can lead to you working extended hours to establish the business
Work encroaches into your personal life, due to the global nature of business you might have to field business calls in the middle of the night with people living in a different timezone
You might need sources of capital and collateral to raise funds
You will not receive a regular guaranteed salary
You only earn money if your business is profitable
It can take a long time for your business to be profitable
Before your company goes public (Initial Public Offering) it might not be easy to exit the business
You might have to take on different roles e.g. become an accountant, marketing manager forcing you to learn new skills you might not be interested in
Failure can take place in a very public way. The failure of new hot startups can be global news. For example Theranos
There is always the risk of failure hanging over your head
It can be difficult to compete with other business
You have to penetrate a given market especially if it’s saturated
Might leave you in debt as you borrow to start your business or if your business fails

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Commerce: Advantages And Disadvantages Of Being An Entrepreneur- Updated 2023