IGCSE, A Level Business Student Forum

[KN]Work life balance can be disturbed
[AN]Entrepreneurs have the main stake in a business therefore they have to work hard for longer hours
[AN]which may adversely affect their health

[KN]Investment is on risk
[AN]Entrepreneur invest their own money into setting up a business when there is no assurance of return in the form of profits
[AN] hence if no income is generated this can be a financial burden on the person

Ahmed Zunair wrote: ↑Sun Oct 29, 2023 6:38 pm [KN] Risk
[AN] their investments are not guaranteed to be retuned
[AN+] thus they could end in bankruptcy if there investments are not successful.

[KN] Stress
[AN] this is because of the investments they have made and they are always wanting them to profit them rather then making a loss.
[AN+] Thus this leads to many health issues

In the second analysis you can explain the stress of the entrepreneur that he has financial pressure or uncertainty e.g market fluctuations, competition etc.

Q2 Analyse the drawbacks of being an entrepreneur. [6]

[KN]long working hours
[AN]as they are responsible and manage every decision, detail and situation, they tend to work overtime
[AN+]thus, an imbalanced work-life situation is created, which could impact their health and descision

[KN]Financial, and management burden
[AN]if any financial issue would occur, where due to a previous decision, business failure occurred, and its outcome solely falls on you
[AN+]thus, the entrepreneur can fall in debt, and may even have to pay it off with their own personal assets

[KN] financial risk
[AN] An entrepreneur will need investment to start a business and hence he will have to earn it or take a loan
[AN+] If the business fails then all the investment is waisted and the entrepreneur may face debt

[KN] no stable income
[AN] As an entrepreneur income depends on the profits generated which will fluctuate all the time
[AN+] Hence there is no confirmed amount that the entrepreneur will get and there is a possibility that he may not earn at all at times

[KN] difficult to maintain work life balance
[AN]Entrepreneurs may find it challenging to maintain their physical and mental well-being while managing their businesses.
[AN+] the pressure to succeed can lead to burnout reducing efficiency

[KN]Lack of Benefits
[AN]They must arrange and pay for benefits on their own, which can be costly.
[AN+]it may take time before the business becomes profitable and there's a risk of financial loss if the business fails.