Business & Finance Entrepreneurship-startup

The Disadvantages of Being an Entrepreneur

    Sole Decision Maker

    • As an entrepreneur, you are solely responsible for the success or failure of your business. In an organizational setting, you can discuss your ideas, opinions and decisions with colleagues and managers, whereas entrepreneurship doesn't allow for that possibility. You must make every single decision. If you miss deadlines, then you must deal with the ramifications; that could mean even losing a client. You must maintain a reputation with clients as someone who makes swift, firm decisions and sticks to them.

    Unpredictability

    • Being an entrepreneur means getting used to extreme unpredictability. You can't look forward to the security of a regular paycheck every two weeks. You must stay on your toes at all times, ready to respond to any emergency. It can be particularly hard at first because you'll be responsible for a great many details, including researching for your business and gathering essential resources such as money, talent and supplies.

    Lack of Benefits

    • As an entrepreneur, you won't have paid sick days and child care allowances. You must spend your own money for health insurance. No employers are around to contribute to your pension; you must pay for it yourself. You cannot claim compensation for work-related injuries, nor can you claim unemployment benefits in case you don't have any work coming in or clients don't pay you when they should.

    Considerations

    • You must have self-discipline and energy to be successful as an entrepreneur. Generally speaking, most people lack these qualities in the amounts necessary to become an entrepreneur. Trying to develop and sustain those characteristics alone may be a monumental challenge. Also, if you're not normally a social person, then you may have trouble. Sociability is crucial as it enables you to network and build relationships with clients.

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