Entrepreneurship is the ability to look for new opportunities. Entrepreneurship is grabbing an opportunity by taking innovative actions. In the effort of entrepreneurs in doing management tasks, there would be advantages and disadvantages that would be experienced. Therefore, an entrepreneur should know the advantages and disadvantages of entrepreneur earlier in order in running the business can control certain important things within the management effectively and efficiently. Below are common advantages and disadvantages of entrepreneurship:
Advantages of Entrepreneurship:
1. Autonomy. Free of management and not bound to make self-employment being a "boss" of full satisfaction.
2. Initial challenge and the feeling of achievement motive. Opportunities to develop a business concept that can produce highly motivated entrepreneurial profit.
3. Financial controls (Control of finances).
4. Free in managing finances, and feeling as the money within the organization is own wealth.
Disadvantages of Entrepreneurship:
1. Personal sacrifice. In the beginning entrepreneur must work with a long time and need to be focus and busy. There is little time for family activities, recreation, and even with friends. Almost all of the time spent on business activities.
2. Burden of Responsibility. Entrepreneurs need to manage all of the business functions in the organization, such as marketing, finance, personnel and procurement and training.
3. The less profit margin, then more likely to go bankrupt, because usually entrepreneurs use the small profit to be allocated to expenses in the future, and then if all things within the company financed by using less amount of money, there would be the possibility which the entrepreneur being in debt or the business getting low margin relatively. If so, then there would be a possibility of failure in running the business.
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