For the most part, I think being an entrepreneur is an rewarding, fulfilling experience. However, there are definitely some challenges every entrepreneur must face and not everyone is meant to be an entrepreneur. In fact, I’d argue most people aren’t meant to be their own boss.
Advantages of entrepreneurship
- Being your own boss:
As a business owner, you can enjoy the freedom of directing your business according to your preferences and resources. You can experiment with your own expertise and ideas. You can set your own working schedules and manage work demand on your time. This can be very refreshing if you have spent too much time under the employment of another.
In an independent organization, both owner and employees can enjoy economic stability. The business can change their policies to stay competitive in a market. Stability is an advantage that brings maximum satisfaction to stakeholders.
- Greater income opportunity:
Working for somebody else means you’re likely going to earn a salary with limited benefits. As an entrepreneur, the earning potential is limitless. This come with risks, but in reality, the opportunity to earn more is much greater owning your own business.
Disadvantages of entrepreneurship
- Long working hours:
Although entrepreneurship will offer you the benefits of flexible working hours you often have to work for long hours especially during the initial stage.
- Responsible for decision making:
Being responsible for all decisions can cause stress. Handling a decision making responsibility is quite difficult.
- Difficulty keeping up with the competition:
Staying competitive is very stressful for an entrepreneur. You will need to introduce something different from others in order to establish a solid customer base.
- No regular income:
Being an entrepreneur means availing income on periodical basis. Thus, if your business slows down, you will not enjoy a sufficient amount of income.
- NO guarantees for success:
Entrepreneurship is a way to make your dream of a business come true, but you have to do some sacrifices. It is also true that success of a business is not guaranteed.
- Social isolation:
Due to the burden of responsibilities, it is not easy to have much time for social interaction, holiday parties, and enjoy happy hours after a stressful day of work.
When you own your own business, you have to pay all the sales and income taxes of your business.