Entrepreneur’s means “a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so”. Risk is the major part of the every business. Every businessman takes more and more risk to gain more profit. In other words, we can say that higher risk more profit, and lesser risk lesser profit. An Entrepreneur is a person who has possession of new ideas, creativity to invest money in a business in such a way that to gain more profit. Following are the advantages and disadvantages of entrepreneur:
Advantages of Entrepreneur:
- Generation of employment: When any person start the business then it is very helpful to generate the employment opportunity for the employee. It is very helpful for the economic development of the country. It is very helpful to remove the poverty from the country.
- Increase in per capita income: when the business is increased day by day then income of the business is also increased. When income is increased then per capita income is also increased.
How per capita income is calculated:
Per capita income = Total income / population
- Helpful in capital information: Entrepreneur uses the money in a proper way. In other words, we can say that proper utilization of funds. When people invest in his company then it also gives proper returns.
- Balance regional development: Every entrepreneur start the business in a small scale. It is the main advantages of the entrepreneur balance regional development. When person the business in backward area or poor people area then backward area also developed. And maintain balanced growth, and employment.
- Providing self-reliance/ self-sufficient: In case of Entrepreneur, we will describe about the self-sufficient. He is not depending on the other person. He can't delegate all the power to the subordinate. He is always understandable. He is the power to take all the decision himself.
- Lack of viable concept: It means lack of proper concept. Sometime person start the business it can't run properly with the reason of lack of viable/proper concept. It can be suffered loss. So, this is the main disadvantages of the entrepreneur. When person start the business then always skilled labour in every entrepreneur.
- Lack of marketing knowledge: Marketing knowledge is very necessary for every entrepreneur. When person know about the marketing then it can be produced the goods acc. to the customer satisfaction. He can also know about the price. How to gain profit in the market.
- Lack of business knowledge: When person start the business then it is very necessary to knowledge about the business. When he is failure to convenience to the customer about the business then it is very difficult to maintain the business for a long time.
- Social Stigma: for every entrepreneur popularity is not necessary but quality of the product is also preferred in business. So, every businessman produced those which goods which are best in quality, quantity, rate, etc. that people can fulfill all the daily needs in a easiest way.
- Monopoly and protection: during the time of the liberalization, people are not free to innovate anything but now at that time of the items free/ provide monopoly. People can think about a new technology.