Describe the Term Entrepreneurship and the Challenges of Starting a Small Business
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Burke Bembridge
Bus 110
First Evaluation
Instructor; Dr Chris Ehiobuche
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 ones 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 doesnt 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 in how to start and Operate the business and also provide ongoing training programs for managers and employees. Being a part of a franchise you may have easy access to financial assistance to cover start-up cost. With all the advantage that Franchising brings there are a few disadvantages. The franchiser gives up a lot of control over operation and has less control over its franchisees.
b) Most Business merge to form a large company, to acquire products and services they may not have or to bridge the gap in the business cycle. In a horizontal merger companies that product the same product merge to form a larger company. This gives each company the opportunity to learn new ideas on operation and production of a product this will help to restructure a company and allows it to reach new cover new areas. Another form of merger is a vertical merger. In a vertical merger a company merger with another company to acquire resources the may not have. This allows a company to focus in a particular area and extend responsibilities to another company concentrated in a particular area. A conglomerate merger gives company the opportunity to extend their business and respond to changes in the business cycle. A conglomerate merger is great for companies who manufacture and distribute product that are seasonal.
c) The idea of being in control on ones financial future by establishing, owning, and operating their own business has driven most individuals in the direction of sole proprietorship. Becoming an entrepreneur is a grate way to start up and operation with little risk of liability exposure. A sole proprietorship is usually a business that is established, owned, operated and often financed by one person.
d) Having a partnership can be an ideal way to start a business. Having a partner can help push an organization in the right direction some advantage of partnership is ease of formation, Availability of capital, diversity of skills and experience, no special taxes, relative freedom from government control. There are different types