Describe the term Entrepreneurship and the challenges of starting a small business
Entrepreneurship is the dream of a lifetime for most individuals. The idea of being in control on one's financial future by establishing, owning, and operating their own business has driven most individuals in the direction of Sole Proprietorships. Most plunge in looking at the advantage and over looking the disadvantage and challenges of Sole Proprietorships.
This first challenge that one might face on the road to Entrepreneurship is raising the necessary funds to finance their business. Financial resources are more limited for sole proprietorships because they are view as a high risk. Sole Proprietorships have few legal requirements and doesn't cost much once the start-up funds is raised he or she can start the business.
To be a successful entrepreneur one must be responsible for all business decisions and be skilled in all areas of the business. Most entrepreneurs over look this trait. Being able to control your business and make decision allows for flexibility when responding to changing business conditions.
Operating a sole proprietorships takes a grate deal of time epical on start-up. To make most sole proprietorships work entrepreneurs must be willing to put in a lot of time more than the normal eight hours put in by most employees. Most business needs a great deal of attention on start up and the owner must will to, make the necessary scarifies.
Most business owners choose sole proprietorships because the owner of a sole proprietorship retains all the profits the business earns. The more efficiently the business operates the higher the profits. Owning and operating you own business can bring great rewards the idea of controlling all profits drive most individuals in the direction of sole proprietorships.
Explain following forms of business
(a) Franchise (b) Mergers (c) Sole Proprietorship (d) Partnership
(e) Multinational company
a) Starting a Franchisee is a grate way to build a business with out starting from the scratch. By becoming a part of a franchisee you may have the ability to nationally advertise and sell a product. This increase the opportunity for success in that franchisee gets a widely know and accepted product that customers know they can depend on. Franchising reduce the cost of owing a business, a franchiser provides a structured training program...
... middle of paper ...
...'s economy. Some concerns that small business face are the challenges of competing in today's global economy. Today many company find it difficult to keeping up with the changes in today's market. The risk of loosing time and money or not being able to reach organizations goals also is a major concern with small business. The standard of living has a grate impact on how a small business performs in that a small company may have to adjust there prices to meet the Standard of living with in their sundering. Other concerns of today's small business owners are revenue and profit. To deal with some of their concerns small most business owners are moving towards partnership. A partnership allows small business owners to become more stable in today's market. Small business are capitalizing on trends by looking a customers spending patterns and creating goods to meet customers demand. Small business has a hard time finding and keeping qualified employees because they cannot offer the same benefits and opportunities. To manage and compete in toadies business market small business are moving into partnership as the business grows. This will allow for more financial and managerial resources.