Rather than working for another company, entrepreneurs are more interested in becoming their own boss and starting their own business. The rate of entrepreneurship is increasing drastically as the writers of The Future of Working would say. Branching out and starting your own business of course has its’ perks, however along with advantages comes disadvantages. With innovation and great ideas comes failure and not all ideas entrepreneurs come with are the greatest. Although the startup of a new small firm is relatively cheaper than if you were to start a large company, the work for a single person to manage is unbearable. Therefore, entrepreneurs are faced with both advantages and disadvantages when starting a small business, however the actions they decide to take will either make their business successful or a fail.
The …show more content…
By starting a small business, owners are in advantage by being able to run their business for a lower cost as oppose to if they were to open a franchise or a large company. Entrepreneurs are able to set their own wages and make investments. Although starting the startup of a small business is cheaper than a large business, the funding’s may not always be there. Starting a small business means that there will be limited financing available. This disadvantage harms the entrepreneur because financing for a new business tends to be more difficult to obtain. Paul Chaney, the writer of 10 Reasons Small Companies Fail states that in 2015 DNA of an Entrepreneur reports that 21 perfect of US entrepreneurs have resorted to using their credit cards to fund their business. By using a credit card to start a small business, entrepreneurs are borrowing cash that they may not be able to repay. Also, interest rates for credit cards tend to be relatively high. Therefore, entrepreneurs resort to their friends, family and even colleagues for funds and loans to start their
The …show more content…
By starting a small business, owners are in advantage by being able to run their business for a lower cost as oppose to if they were to open a franchise or a large company. Entrepreneurs are able to set their own wages and make investments. Although starting the startup of a small business is cheaper than a large business, the funding’s may not always be there. Starting a small business means that there will be limited financing available. This disadvantage harms the entrepreneur because financing for a new business tends to be more difficult to obtain. Paul Chaney, the writer of 10 Reasons Small Companies Fail states that in 2015 DNA of an Entrepreneur reports that 21 perfect of US entrepreneurs have resorted to using their credit cards to fund their business. By using a credit card to start a small business, entrepreneurs are borrowing cash that they may not be able to repay. Also, interest rates for credit cards tend to be relatively high. Therefore, entrepreneurs resort to their friends, family and even colleagues for funds and loans to start their