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

Quick NetOne, Econet, And Telecel Airtime Recharge