ENTERPRISE AND ENTREPRENEUSHIP SUMMARY
✅ Advantages of Entrepreneurship (to the individual)
1. Independence – Entrepreneurs make their own decisions, without being controlled by a
manager.
2. Profit motive – If successful, they keep the profits instead of sharing with an employer.
3. Personal satisfaction – Achieving goals and building a business can increase
motivation and pride.
4. Flexibility – Ability to choose working hours and adapt to personal lifestyle.
5. Innovation and creativity – Entrepreneurs can turn ideas into reality, which is
rewarding.
❌ Disadvantages of Entrepreneurship (to the individual)
1. Financial risk – High chance of failure; personal savings may be lost.
2. Income uncertainty – No fixed salary; income depends on business performance.
3. Workload and stress – Entrepreneurs often work long hours with high responsibility.
4. Limited resources – Difficulties in getting finance, staff, or access to economies of
scale.
5. Possibility of failure – Many new businesses do not survive beyond the first few years.
🌍 Importance of Entrepreneurship to the Economy
1. Job creation – New businesses employ workers, reducing unemployment.
2. Innovation – Entrepreneurs introduce new products, services, and processes that
improve consumer choice.
3. Competition – Increases market efficiency, leading to better quality and lower prices.
4. Economic growth – Successful businesses contribute to GDP and national income.
5. Tax revenue – Profitable businesses pay taxes, funding public services.
6. Exports and foreign exchange – Some entrepreneurial firms open new export
markets, supporting balance of payments.
7. Regional development – Small businesses in rural or less-developed areas reduce
regional inequality.