Costs of Entrepreneurship, Essay Example for Students

A majority of the employees do not like the 9 to 5 o'clock hustle that they are subjected to a weekly basis throughout the year. Hence, some of the personnel aim at initiating their entrepreneurial ventures to be their own bosses. However, few businesspersons contemplate the probable implications associated with entrepreneurship. Besides, entrepreneurship is be characterized by various advantages and disadvantages just like any other professions. Consequently, entrepreneurs need to learn how to mitigate such challenges to make sure their ventures are viable. For instance, one must dedicate a lot of time to their business to be able to compete with the dominant companies. Nonetheless, the prolonged working hours do not offer a 100% guarantee that the business will prosper. Therefore, an entrepreneur should exploit the flexibility associated with entrepreneurship to design favorable working hours to increase their revenues while learning new business ideas.

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Entrepreneurship offers resourceful freedom to most businesspersons. Hence, being an entrepreneur implies that one has the opportunity to determine their most preferable daily task. According to Banerji, Raj, and Sen (2015), entrepreneurs can exploit their strengths to instigate a business they believe utilizes their skills and experience optimally. As a result, entrepreneurship endows one with the opportunity to make fundamental decisions that determine their potential earnings. Entrepreneurship gives one numerous options to determine their professional destiny that is usually associated with a satisfactory experience even though the initial revenues might be meager. For that reason, entrepreneurship gives an individual the freedom to design their suitable working schedule rather than the 9 to 5 working hours.

Most of the entrepreneurs have a rational income that is equivalent to their input. Approximately 85% of the employed workers' gross income is not proportional to their innovations and working hours (Petrakis & Valsamis, 2013). However, entrepreneurs' net revenues depict their cumulative efforts and innovative endeavors that inspire them to deliver exemplary products or services. Consequently, a majority of businesspersons are committed to the production of world-class services and commodities to enhance their prosperity chances. Therefore, entrepreneurship provides a viable platform for attaining financial success that most employees crave for regularly.

Entrepreneurship exposes one to new and exciting business concepts on a daily basis. For that reason, entrepreneurs are likely to face new business challenges every day that oblige them to invent new techniques to tackle the emerging entrepreneurial issues. Contrary, employees reporting to the same workstation to perform monotonous tasks limit their chances of developing new skills (Parker, 2012). Entrepreneurship gives individuals the opportunity to resolve emergent business issues that improve their abilities and determination to provide applicable solutions that employees do not experience often. As a result, the entrepreneurs' exposure to new opportunities gives them the chance to evaluate their abilities, skills, and determination.

A majority of the entrepreneurs face challenges in making fundamental decisions meant to guarantee the business' prosperity. It is thrilling to make most of the business decisions although it is tiresome too. Besides, some decisions are quite difficult particularly, if one has to terminate their subordinates' employment (Petrakis & Valsamis, 2013). Similarly, some of the managerial decisions require one to read numerous business reports to make a sustainable decision. Therefore, the decision-making process associated with the entrepreneurial activities consumes a lot of energy and personal time that causes depression at times.

Stiff competition is one of the most challenging problems entrepreneurs have to address in their businesses. For instance, emerging entrepreneurial trends require one to be always innovative on modifying their services and products to satisfy the consumers' dynamic needs. Likewise, new businesspersons have to work hard to secure a market share for their products and services against the dominant brands in that sector (Banerji et al., 2015). Similarly, the entrepreneurs who have dominated the market have to constantly realign their production processes to avoid being phased out by the new competitors. Hence, entrepreneurs are always exposed to the pressure to produce better merchandises due to the stiff competition from rival businesses.

Entrepreneurs are faced with the challenge making of tough management decisions. Moreover, businesspersons have to read several business reports to make a sustainable decision. The decision-making process usually consumes a lot of energy and personal time that might cause depression to the entrepreneurs. Conversely, entrepreneurship gives one the freedom to control their work schedule rather than being committed to the 9 to 5 weekly hustle. Additionally, entrepreneurs have to constantly modify their services and product to counter the stiff competition from their rivals attempting to minimize their market share. On the contrary, entrepreneurship offers one the opportunity to learn new business concepts based on the different challenges they face every day. For that reason, entrepreneurs have numerous chances to evaluate their abilities, skills, and determination to solve emerging consumer needs, unlike employees. Therefore, entrepreneurship is a viable option that provides one the opportunity to enhance their skills on resolving emerging business problems that sharpen their skills and abilities. Additionally, one has the freedom to design their working schedule and get an income proportional to their input.

References

Banerji, S., Raj, R., & Sen, K. (2015). Monitoring costs, credit constraints and entrepreneurship. The Manchester School, 84(5), 573-599. doi: 10.1111/manc.12122

Parker, S. (2012). The costs of entrepreneurship. International Journal of Entrepreneurial Venturing, 4(4), 330. doi: 10.1504/ijev.2012.049827

Petrakis, P., & Valsamis, D. (2013). Entrepreneurship, transaction costs and cultural background. International Business Research, 6(5), 55-64. doi: 10.5539/ibr.v6n5p55