Why solopreneurs remain solo and y are they successful in recent decades
Many people today admire being bosses, and being self-employed allows them to make their own decisions and work with no pressure. The business is I the rise because of its flexibility, and the low initial cost is used to start the business.
Characteristics, the motivation of small businesses, and their challenges.
A business owner’s essential characteristics include being self-motivated, confident, time conscious, and risk-taker. The challenges that they face has poor decision making cash flow issue, productions and human resource management are the most common challenges.
Stages of small business growth
- The first stage is the existence stage that involves getting the money and establishing the markets for your products.
- The survival stage involves ensuring that the business maximizes its profits to finance its growth.
- After the growth as occurred, the success stage is when the owner decides if to continue expanding his business or invest to other companies.
- The takeoff stage is the stage that involves employing competent managers to avoid fall back of the company.
- The maturity stage is a stage of financial achievement and ensures that the business can predict and solve future problems.
Characteristics of small business that is vulnerable to failure.
- Poor management may cause mismanagement of funds, which is the essential determinant of business success.
- A business with debt this will drain their capital due to the profits involved.
- The poor marketing strategy may also cause the business to fail because its goods will not be sold.
- Low wages among the members. Salary Unity is the essential factor of any business’s success, and if there is no unity, the company will fail.
- Dependency and competition a business which depends on other business will tend to fail.
- Lack of digital representative due to the high technological development rate if the business has no digital flatform will fail.
Different between micro-sized enterprises and medium-sized enterprise
A microenterprise has more than two investors while medium investors are more than 5
Describe three archetypes of the entrepreneur.
Mission driven-they have an aim or goal they opt to achieve
Opportunist-they utilizes any opportunity they come across.
Inventors- they are creative.
Myths of entrepreneur
- There is a lack of financial support in small businesses.
- Entrepreneurs suffer a lot of risks alone.
- The primary motivation of entrepreneurs is money. This is not true because one has to have an interest.
- Entrepreneurs have no personal lifer their life involved in the business; this is false because they are human beings hoe enjoy life.
- Entrepreneurs are formally trained. Not all entrepreneurs are trained; some use their talents.
Different between effectuation theory and causation theory in entrepreneurship
A causation entrepreneur focuses on predetermined goals to achieve their other goals, while a effectuate entrepreneur involves things at hand to achieve their goals.
Describe three reasons for small business failure
- Poor management- this is the leading cause of business today management involves the control of all the company sectors, and when one fails, the business ends.
- Competition is another factor that affects the business; small businesses can thrive in these environments if they have the same strength as other businesses.
- Disunity and low wages make small organizations fail due to the lack of motivation.