Question

Examine the dark side of entrepreneurship by explaining how any three of the following issues impact entrepreneurs:

1. Financial risk
2. Career risk
3. Family and social risk
4. Psychic risk
5. Stress from loneliness
6. Stress from immersion in business
7. Stress from the need to achieve

Answer 1

Entrepreneurship is attractive activity as it creates self-employment and huge cash inflows after a period of struggle. However, it brings with it great deal of risks.

a. Financial risk: Entrepreneurs have to struggle to consolidate the funds required to run the business. They usually pool their own resources as well as take money in the form of loans from various sources. In doing so they stand at losing their as savings as well as others if their business do not succeed. In the event of business failing to click in the market, Entrepreneurs will not only lose their hard earned savings but also they will have to pay back the amount they took as loan. Therefore, Entrepreneurship brings with it huge financial risk.

b. Family and social risk: Entrepreneurship is a continuous activity. It requires full time effort and attention. Entrepreneurs fully immerse themselves in their efforts to succeed their business idea. In doing do, Entrepreneurs alienate themselves from family and social life for a considerable period of time. Majority of the Entrepreneurs fail to have a work-life balance. Even after the business is established, Entrepreneurs have to devote much of their time in the business. In this way Entrepreneurship brings with it family and social risk.

c. Stress from the need to achieve: Entrepreneurs have great zeal to achieve something. They try hard and make huge efforts in establishing their business. They are constantly watched by society to know how much they have achieved. Their efforts go waste if their business idea does not click. A small error in the estimation of business ad market will lead to considerable loss; thereby making Entrepreneurs highly vulnerable to stress from the need to achieve.