Advantages and Disadvantages of Being an Entrepreneur

December 22, 2022

Advantages and Disadvantages of Being an Entrepreneur

It is the eternal question that every entrepreneur asks himself: is it really possible to start my own company? And, obviously, the answer is not simple. As many factors influence types of business and people willing to take the reins of them.

From the motivations that lead us to undertake to the existence of a true business opportunity, through the attitudes and aptitudes of each entrepreneur, the decision to undertake or not is subject to a series of considerations that must be taken into account before starting. "launching into the adventure" of entrepreneurship. Because creating and consolidating a company is a complicated process in which both personal and professional factors come into play.

On the one hand, it is not enough to have a business idea. For this to materialise into a true business opportunity that enables a company's sustainability over time, it is necessary to know the conditions of the market in which we operate, what our competition is and who our customers are.

And very important, thoroughly assess the advantages and disadvantages of undertaking and your expectations in this regard.

Advantages of Being an Entrepreneur

Job stability

In the labour context in which we have found ourselves, “working in a company all your life”, at least as an employee, is a concept that has been fading in favour of greater labour mobility, but also greater uncertainty.

The generation of self-employment is not exempt from this uncertainty regarding the future, but the continuity or not of the activity depends on economic and business factors and not on the decision of our employer. 

Autonomy and freedom of time

As entrepreneurs, we are the ones who set the pace, the working hours and impose the rules that will govern our activity.

Although it is true that, as we will explain later, it requires great dedication and effort, being "our own boss" allows us to decide autonomously what is the best time to carry out a certain task or what is the level of demand to apply.

It goes without saying that these types of decisions must always move within the principles of responsibility, perseverance and the search for excellence and quality if we want the success of our business.

But it also allows us to implement our own ideas and work methodologies, adapt the activity to our needs and decide to what degree we want to reconcile our work and family life.

If we choose to undertake together with other partners, we will sacrifice part of our autonomy for greater capacity.

If it is our decision, we must be aware of the risks involved and take care not to make the typical mistakes when looking for a partner.

Personal satisfaction

Because, for many, nothing produces more satisfaction than a job well done, especially if it develops, from its gestation to its execution, under our own perception of how it should be done.

This type of satisfaction is related to our enhancement as individuals through the planning and overcoming of various challenges, applying our skills productively and imaginatively, and obtaining results as a result of our effort, dedication, and passion.

Fight for something of your own

Very much in line with the above, undertaking means putting a project underway, especially when it involves difficulty.

Undertaking is a daily struggle to overcome challenges and obstacles, but this battle becomes much more bearable when it is aimed at achieving the goals that we have set for ourselves.

But not only our aspirations are at stake, but also the time and money we have invested in our project, the sacrifices made to start it up and the possibility of bequeathing the fruit of our efforts to future generations.

Increased income and economic freedom

Perhaps this is one of the most controversial points, but if our project is well planned and is finally successful, we can aspire to have a higher income than working for someone else.

Although it is true that, sometimes, in the initial stages of a company, expenses are greater than income, so it is advisable to have a surplus and an economic plan in which we have calculated how long we can "afford" to lose money before beginning to obtain benefits, once reached this point, the possibilities of increasing our economic perception also increase and, in addition, this will be related to the economic success of our business project.

Social prestige

Setting up and consolidating a company that, through its activity, is capable of meeting real needs and demands and contributes to improving the environment in which we live can become a great source of social recognition that, although it should not be the ultimate goal, it can open many doors for us to continue growing and evolving both professionally and personally.

Geographic freedom

The rise of freelance teleworking today allows many professions to be practised remotely, from anywhere, which opens the door to working from wherever you want at any time.

Be it your second residence, your place of origin where you can enjoy a better quality of life, another country to which you move for a while or even who knows, going around the world.

Freedom of purpose

If you dedicate yourself to what you really like and also with it you are really helping other people, your enterprise will reach an additional point of satisfaction and fulfilment, giving a lot of meaning to your life.

Disadvantages of Being an Entrepreneur

Greater dedication

When we start our own company, we must know from the beginning that it will require many hours of effort and dedication, especially at the beginning.

Being an entrepreneur means, in many cases, developing many skills and being able to put them all into practice at the same time, that is, being "multitasking", as well as developing good business productivity habits.

Being in charge of a business does not only mean making cash at the end of the month, but the control and supervision of all the activities and decisions that are made must be constant. 

In fact, when it comes to micro-enterprises, there is usually only one person in charge of developing various activities necessary for the normal operation of the project, so the dedication is even greater.

However, and as we have explained above, we have greater autonomy to decide the when and how of each task.

Economic risk

There are many factors that determine the economic success or failure of our business project, both external, such as an unfavourable environment, and internal, which can be derived from poor management.

As businessmen, we are responsible for the economic viability of our project and, especially, the self-employed and small companies, since in these cases the capital usually comes from our own funds or from other financing channels, but for whose debt we are responsible .

In addition, the economic success or failure of the project depends on the benefits or income that we receive and, therefore, our way of subsistence.

It must also be taken into account that income can vary significantly from one month to the next, so careful financial planning is recommended.

Uncertainty

In relation to the above, the uncertainty regarding the growth and consolidation of our business project is constant for the entrepreneur.

As entrepreneurs or self-employed professionals, we are ultimately responsible for each decision, each success and each failure.

There is no formula that guarantees the success of our project and there is always the possibility of an unexpected turn of events, so it is vital to have a plan B in case everything fails.

Lastly, it should be noted that mentoring programs for entrepreneurs help to achieve results more quickly, reducing risks and uncertainty by avoiding making the mistakes that others have already made.

They also allow you to take advantage of the experience and knowledge of mentors, so it is an option that you should value.

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