Question

What are advangtages and disadvantages of small business ownership? Which do you agree with the most? Would you start a business? How are websits like Kickstarter and Gofundme helping with small business ownership.

Answer 1

Small Business Ownership
These are privately owned business entities. They are either sole proprietorhsips, partnerships or privately owned corporations. They are termed as small as the cost, investment, profits, revenues all are less and small compared to regular sized businesses. The number of employees are also less and most of the cases there is only one person involved in the business activities.

Advantages

Risk
The risk involved in small business are comparitively less. As the investments are less and there are less number of people involved in the activities so the risk quotient is less here.
Control
The control of the entire business lies in the hands of the individual who owns it. There is no other person involved so the control on all the activities in under one hand and it is totally under control.
Independence
Owners are their own bosses. Totall independence is there. They only make decisions about investment, work, delegation, hours of work, payment, and all other matters. No other outsider is involved here.
Profits
Here the profits are to be borne by the same person only. As there is only one owner it need not be distributed so the entire profits can be at ones disposal.
Flexibility
Small business ownership offers flexibility to all the aspects. Flexibility is there in investment, hours of work, distribution of work, which business to be done, where to go for raw materials, whom to sell etc. There is no necessity to ask any one and all decisions can be made as per his own needs.
Prestige
As he is the only owner there is a sense of prestige in the activities. The owner can take pride in what he is doing as his decisons and actions will bring the results of the firm.
Growth
It is an opportunity to the owner to take decisions and function by his own. In this whole process he learns a lot about each activity and know how to tackle the situation and ultimately grows.

Disadvantages
Commitment
This type of business calls for total commitment as there will be no other people to help so the owner only have to be committed and have to devote a lot.
Uncertainity
The problem of uncertainity is more in this type of business entities. There will be less investment, money and people involved here which in turn increases the problem of uncertainity.
Lack of expertise
As only owner is there, who will not be an expert in all the activities. He has to manage all by his own, not necessary that he has knowledge about all activities, so these kind of ownerships has to face the problem of lack of expertise.
Losses
Like profits become the advantage, losses become the disadvantage here. Only one owner therefore in case of loss the person has to bear the entire loss.

I agree with the point of Lack of Expertise the most because in any business entity whether small or big many activities are there from the inception to the developed stage. One person will not have all the knowledge and deal with the situations and act accordingly. So the disadvantage of lack of expertise is a big problem. If proper person are appointed at proper posts then their knowledge will help the firm to grow. When only one person is taking care of entire business chances are there that he might miss many improtant things.

Considering the disadvantages of the small business and being a non business oriented person I may not start a business.

Kickstarter and Gofundme websites and many other such websites help the small business ownerships in many ways. They help them in guiding things. At each stage of a business some or other help is required as the disadvantages are more in this area, these websites come to resuce. Their expertise helps the owner here. They take nominal fees but act a guidng force and help the invidividual owner whereever he is stuck. And this process will in turn help the small business to flourish and grow.