Topic Summary
An entrepreneur is someone who sets up a business or businesses, taking on financial risk in the hope of earning a profit. One of the most famous UK entrepreneurs is Richard Branson, the founder of Virgin. However, entrepreneurs do not have to be millionaires; most own small businesses. In the UK private sector, small and medium businesses account for over half of the total turnover (£2.4 trillion, or 52%), and small businesses employ 48% of the workforce.
Positives of Entrepreneurship:
- You determine your own pay. You can establish a flexible working schedule to suit your needs. You work independently and make decisions on your own. You have the freedom to choose your work environment. There is no internal competition with colleagues.
Downsides of Entrepreneurship:
- Entrepreneurs are often the last to be paid, as employees must be paid first. Some individuals perform better with a structured environment. All responsibilities fall solely on the entrepreneur. You might have to operate your business from a less-than-ideal location. You face competition from other businesses.
Question
Which of these is a positive point of being an entrepreneur?
Discussion
Do the positives of entrepreneurship outweigh the downsides?
How it works in real life
Practice thinking like an entrepreneur by creating a business plan for a new start-up. Consider the product or service you will offer, how you will market it, and how you will structure your organization. What insights do you gain about entrepreneurship from this process?