Definitions of Motives for Entrepreneurs to set up a business (coursework) BY Ella_w Motives For anyone to start up a business they must have a motivation of some sort. Without a strong motive for business creation an entrepreneur may quickly loose interest In the business venture. Being an entrepreneur, and starting up a business or company is an extremely hard task.
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Motivation is a vital characteristic of anyone who is even considering going into business, because they need to have a very strong goal for hem to be able to cope well with the amounts of work. At times they will feel Like giving up and abandoning, but if they have a good motivation they will look towards the future benefits of the hard work they are putting in and strive to succeed. During an Investigation of businesses in my local area, I asked a range of entrepreneurs what their mall motives for starting their own business or company was.
Their answers were varied. However there were some motives that seemed to be more frequent than others such as; Profit, Job satisfaction, Freedom to make sessions, creating a business by selling the by products of their hobbles and redundancy. My investigation showed that the main reason for many individuals starting up a business Is profit. Profit or CAPITOL Is an extremely important element to any business, and generating lots of It Is often a very appealing prospect.
A high amount of profit equals a high amount of income for the entrepreneur(s) and therefore enables them to have a good quality of life. Most likely an entrepreneur will be looking to make more money than In his/hers old Job, parents, competitors e. T. C. However, if the business makes a loss or the businesses profits are reduced, the amount of income the entrepreneur(s) receive will also be reduced along with the standard of life the entrepreneur(s) has.
The determination not loose money and to provide for themselves and their families is what makes profit a major, motivation for entrepreneurs. Another common motivation for starting a business (from the results of my survey) was redundancy. When people are made redundant they often feel that they are limited in career prospects. This is especially the case in my local area where many people working in the secondary and primary sectors have been made redundant.
Often workers from such businesses in my local area have only worked with one company throughout their entire working life, or have only specialized In one field. This means that if these companies close down the above individuals will find it hard to find work because all they’re skills are focused on a Job role that is no longer It is for the above reasons that many people who are made redundant only have two options available to them; they can either start at the bottom of a new career ladder and usually the bottom of the pay scale) or they can start up their own business.
The idea of starting up a company or business is usually the most appealing as they can not only utilities their skills, but they will not be limited to certain career possibilities and be under the instruction of new authority figures. Many entrepreneurs I questioned often stated that they had a passion for the products they are selling. This is an exceptional motivation for starting up a business. As an entrepreneur will usually start up a business based on a hobby or interest this allows for great Job satisfaction, as they are devoting their careers to their own interests rather than others.
Many entrepreneurs who start a business based on a hobby, e. G. Florists or dressmakers, often started as side businesses – a profitable hobby! If this business becomes successful then the entrepreneur will usually focus all their attention to the business. If they had an additional Job prior to their companies success then they will often give it up. Entrepreneurs are usually the ones with the final say in hoe their business is run. They are usually highly creative yet headstrong people, with strong opinions and personal life goals.
Because of the above characteristics many entrepreneurs first started up in business because they felt oppressed by the authority figures in a normal Job. They crave the ability to make their own decisions, follow their intuition and try out new, creative ideas. Many of the worlds leading businesses were first set-up by people with little or no qualifications, for whom starting their own business seemed the only promising opportunity to make enough money to adequately support them financially.