Advantages of Entrepreneurship

To an Individual

• Self Employment

• Employment for near & dear ones

• Prolonged career for next generations

• Freedom to use own ideas - Innovation and creativity

• Unlimited income / higher retained income

• Independence

• Satisfaction

To the Nation

• Provides larger employment

• Results in wider distribution of wealth

• Mobilizes local resources, skills and savings

• Accelerates the pace of economic development

• Stimulates innovation & efficiency

Barriers to entrepreneurship

• Lack of a viable concept

• Lack of market knowledge
• Lack of technical skills
• Lack of seed capital/resources
• Lack of business know how
• Lack of sufficient infrastructure
• Complacency
• Restrictive effects of customs and traditions
• Legal constraints
• Monopoly
• Restrictions due to patents
There are 3 types of startup ventures:

1.A lifestyle firm exists primarily to support the owners and usually has little growth
opportunity.
2.Foundation companies are firms created from research and
development that lay the foundation for a new industry.
3.High powered ventures (“gazelles”) are new companies that receive the greatest interest
and publicity.

Types of start up firms :

• Salary substitute firms : are small firms that afford their owner/ owners a level of
similar to what they would earn in conventional job. Examples of salary
substitute firms are dry cleaners, convenience stores, restaurants, accounting
firms, retail stores , hairstyling salons, etc.
• Lifestyle firms : firms that provide their owner or woners the opportunity to
pursue a particular lifestyle and make a living at it .
• Entrepreneurship firms : that bring new products and services to the market by
creating and seizing opportunities regardless of the resources they currently
control .

Types of start up firms :

 Lifestyle firm
 Privately held; usually achieves only modest growth.
 Foundation company
 Created from research and development.
 Lays the foundation for a new business area.
 High-potential venture
 Receives the greatest investment interest and publicity.
 Starts out like a foundation company, but attains rapid growth.
 Also called gazelles, is integral to the economic development of an area
• Some disadvantages
– Will need to put in long hours
– Need money to start
– Have to keep up with government rules and regulations
– May have to mark hard decisions (hiring, firing, etc.)
– May lose money
–
• Some advantages
– You are your own boss
– Enjoy the profits from your efforts
– Sense of pride in your business
– Flexibility in your work schedule