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Entrepreneur is a term we hear often, but what do entrepreneurs do?
Why do people set up their own businesses, rather than work for another firm?
Some people set up a business on their own after being employed by another company, whereas others might start a new business as soon as they leave school or college.
Entrepreneurial activity is called enterprise; being an entrepreneur is about having the desire and skills to set up a business.
A social enterprise is set up to benefit the community using business methods. It aims to make a profit in order to finance the achievement of its social or environmental goals.
People may start up businesses for non-financial reasons.
to pursue a hobby or personal interestto have contact with other peopleto do something challengingto achieve a social or environmental aim.
Businesses face risks at all times, but the riskiest stage is usually at start-up. Around one third of all new businesses fail within the first three years.
Why is it impossible to avoid taking risks when running your own business?
Entrepreneurs have to take decisions that not only risk their own money and reputations but also those of others, such as other investors and lenders.
Taking a calculated risk involves weighing up the potential negative consequences of a decision with the rewards that could occur if the decision is a good one.