Possibility of failure
There is always the possibility of failure – a single wrong business decision can bring a business to bankruptcy.
Unpredictable business conditions
A small business is vulnerable to sudden changes in the business environment. In a fast-paced industry, a small firm may not have the financial capability or the organizational capacity to respond adequately to new opportunities and their concomitant problems.
Long hours of work
A prospective entrepreneur must be ready to spend most if not all his waking hours in the business. Also, family time and personal affairs may be sacrificed.
Unwanted or unexpected responsibilities
The entrepreneur may eventually find himself saddled with management responsibilities he did not bargain for.
LOOKING WITHIN (SELF-ANALYSIS)
Do you have what it takes to go into business?
A successful entrepreneur possesses personal qualities that will help him grow and thrive his business. Extensive research by the Management Systems International reveals ten Personal Entrepreneurial Competencies (PECs) that lead to success. These are grouped into what are known as the Achievement Cluster, the Planning Cluster, and the Power Cluster.
Take a look at these competencies. Try to see if you have some of them and to what extent.
• Perceives and acts on new business opportunities
• Seizes unusual opportunities to obtain financing, equipment, land, workspace or assistance.
• Takes repeated or different actions to overcome obstacles
• Makes sacrifices or expends extraordinary effort to complete a task
• Sticks to own judgment in the face of opposition or disappointments
3. Commitment to work contract
• Accepts full responsibility for problems encountered
• Helps own employees to get the job done
• Seeks to satisfy the customer
• Takes calculated or studied risks
• Prefers situations involving moderate risks
5. Demand for quality and efficiency
• Always strives to raise standards
• Aims for excellence
• Strives to do things better, faster, cheaper.
• Sets clear and specific short-term objectives
• Sets clear long-term goals
• Personally seeks information on clients, suppliers, and competitors
• Seeks experts for business or technical advice
• Uses contacts or networks to obtain information
8. Systematic planning and monitoring
• Develops logical, step-by-step plans to reach goals
• Looks into alternatives and weighs them
• Monitors progress and shifts to alternative strategies when necessary
to achieve goals.
9. Persuasion and networking
• Employs deliberate strategies to influence or persuade others
• Uses business and personal contacts to accomplish objectives
• Believes in self
• Expresses confidence in own ability to complete a difficult task or meet
After looking into yourself – your personal qualities, your interests, skills,
experiences and hobbies and how these would orient you towards a
business of your own, you may now look around. See if the environment
is a conducive one for entrepreneurship.