Q&A - What are the main drawbacks to an entrepreneur of starting a business
There are many potential drawbacks to being an entrepreneur.
The harsh truth is that setting up a new business is a lot worse than many people imagine. In the odd, exceptional case, the start-up process runs according to plan and smoothly. Other entrepreneurs pretend that things are going well, when the reality is very different.
Running a business means that an entrepreneur will:
- Face occasional loneliness and isolation. This is often the case for home-based start-ups.
- Be unable to blame others when things go wrong – the buck stops with the entrepreneur
- Probably be under financial pressure – earning little or sometimes nothing as the business tries to establish itself. Entrepreneurs often find themselves unable to draw income or profits out of the business for several years
- Have to work much harder than in a conventional job – average working of 70+ hours per week is common. This puts a great strain on family and social life
- Probably suffer from higher stress levels (albeit, the stress is of a different kind to that suffered by people who are employed by others)
- Have to rely on multi-tasking rather than call on an established network of specialists (available in a larger business)
- Usually have to work whilst sick, and not get sick pay.
- Experience a roller-coaster of emotions
Put simply, starting a new business is not for the faint-hearted!
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Fully worked A Grade answers to recent Edexcel GCSE Business Studies Unit 3 exam papers with detailed examiner commentary on how good technique scores top marks