ZIMSEC O Level Commerce Notes: Advantages And Disadvantages Of Being An Entrepreneur

  • We have looked at what an entrepreneur is here
  • Now we will look at the advantages and disadvantages of being an entrepreneur
  • Running your own business obviously has its own advantages

Advantages 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

Disadvantages of being an entrepreneur

  • 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

To access more topics go to the Commerce Notes page

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