Constraints in entrepreneurship

constraints/disadvantages associated with entrepreneurship which are explained as follows:

a.       Possible loss of invested capital: One risk of being in entrepreneurship is the possibility of losing your invested capital. The term invested capital means the money entrepreneur put into starting the enterprises. As a general rule, the riskier the business, the greater the profit potential, if the enterprise succeeds, profits may be high. If the enterprise fails, invested capital may be lost; the entrepreneur stands to lose a life time of personal and family savings. It takes years to repay or balance suppliers and individuals who loaned the money to get the business started.

b.      Uncertain or low income: one of the constraints of having an enterprise is the possibility of uncertain or low income. Unlike salaries of employed workers, profits usually vary from one month to another . this is true even in well-established enterprises. When income is available, there still ,may not be enough to meet personal and family needs. This is often the case during the first six twelve months of operation.

c.       Long business hours and overstress: Entrepreneurs do not work just forty hours per week; they do not punch time clocks. Many people who engages in entrepreneurship work fourteen or more hours a day, six or seven days a week. The entrepreneur of an enterprise is often the first to arrive the enterprise in the morning and last to leave at night. Business hours are set at the convenience of customer not the desire of the entrepreneur. For example, many enterprises are opened from 8.00am to 9.00pm. Some entrepreneurs feel they cannot let their enterprises for more than one or two days at a time.

d.      Routine chores: Entrepreneurship may involve routing chores you do not like to do. You also need to be a jack of all trades. There can sometimes be a challenge if you do not join with others in partnership or you cannot raise sufficient funds to allow you to employ other people.