2. drawbacks & problems of entrepreneurship

1. Drawbacks & Problems of Entrepreneurship

2. Problems of Entrepreneurship Risk of Losing Invested Capital Starting a business is all about risk. And the small business failure rate is relatively high. According to a study by the National Federation of Independent Businesses (NFIB), 35% of businesses fail within two years, 54% fail within four years and 64% of new businesses fail after six years. When a business fails it can be financially and emotionally devastating. People contemplating entrepreneurship should decide how much they are willing to risk.

3. Problems of Entrepreneurship Long Hours and Hard Work The average small business owner works 52 hours per week. In many start-up business, 10 - 12 hour work days on 6 - 7 days of the week with no paid vacations is the norm. Because owners must often do everything themselves, they experience long, intense, draining work days.

4. Problems of Entrepreneurship Lower Quality of Life Until the Business is Established Long hours and hard work can effect the entrepreneur's outside life. Business owners often put their role as company founder ahead of their role as husband, wife, or parent. Marriages and friendships are some unfortunate casualties of entrepreneurship. Part of the problem is that most people launch new businesses between the ages of 25 and 34, just when they start their families.

5. Problems of Entrepreneurship High Levels of Stress Most entrepreneurs make significant investments in their companies; they leave behind a steady paycheck, and mortgage everything to get into business. Failure can mean total financial failure as well as a psychological blow. This creates high levels of stress and anxiety.

6. Problems of Entrepreneurship Complete Responsibility Entrepreneurship is highly rewarding, but many entrepreneurs find that they must make decisions on issues they are not very knowledgeable about. When there is no one to ask for answers, the pressure can build quickly. The knowledge that these decisions could decide the success or failure of a business can have a devastating effect on the business owner.

7. Problems of Entrepreneurship Discouragement Launching a business requires much dedication, tenacity and discipline. Entrepreneurs may run into many obstacles, some may even appear to be insurmountable. Disillusionment and discouragement can set in, but successful entrepreneurs know that every new business encounters rough patches and that perseverance is required to get through them.