{"id":52,"date":"2015-04-21T20:58:42","date_gmt":"2015-04-21T20:58:42","guid":{"rendered":"https:\/\/courses.candelalearning.com\/masterybusiness1xngcxmaster\/?post_type=chapter&#038;p=52"},"modified":"2024-05-03T15:31:11","modified_gmt":"2024-05-03T15:31:11","slug":"advantages-and-disadvantages-of-small-business-ownership","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/advantages-and-disadvantages-of-small-business-ownership\/","title":{"raw":"Advantages and Disadvantages of Small-Business Ownership","rendered":"Advantages and Disadvantages of Small-Business Ownership"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Describe the advantages and disadvantages of starting a small business<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"alignright wp-image-8654\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2016\/11\/17200354\/6799551981_9b08f258d9_o.jpg\" alt=\"a man sitting next to a desk and a typewriter \" width=\"350\" height=\"280\" \/>\r\n\r\nThere are very few things in life that can compare to the experience of creating your own business. As investor and former entrepreneur James Caan expresses it: \u201cNothing will ever replace the thrill of creating a profitable company from scratch.\u201d\r\n\r\nStarting a small business is a matter of self-selection and self-determination. While the founders of small businesses still are a part of the society they live in, their business ventures can allow them to step into an alternate reality, part of a social order in which each person\u2014regardless of gender, race, ethnicity, religion, birth, or circumstances\u2014can achieve their fullest potential and receive recognition for their achievements.\r\n\r\nA small business owner has an extreme amount of latitude in both business and lifestyle choices, from developing the business concept and operating environment to defining success. The benefits\u2014measured in impact, revenue, or infrastructure terms\u2014are essentially unlimited. Perhaps the most nebulous, but important, benefit of being a small business owner is the freedom to choose your business\u2019s purpose and goals.\r\n\r\nThe flip side is that you own the decisions and the results of those decisions. Evasion is not an option: you can\u2019t say, \u201cit\u2019s not my job,\u201d point fingers, shrug, or check out. Additionally, as a small business owner, you will probably be risking your own (and, perhaps, friends' and family's) capital. Essentially, you\u2019re flying without a net. There\u2019s no guarantee of a regular paycheck and no paid or subsidized benefits (including a retirement plan, holidays, or perks). You\u2019re responsible for business development, business planning, HR, IT, and every other function as well.\r\n\r\nFreedom from an employer\u2019s expectations comes at a cost: you\u2019re responsible for setting and managing expectations\u2014for yourself and others\u2014and for making the magic happen.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/101ae61c-ffb7-4157-bcac-fb1a52979267\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Describe the advantages and disadvantages of starting a small business<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-8654\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2016\/11\/17200354\/6799551981_9b08f258d9_o.jpg\" alt=\"a man sitting next to a desk and a typewriter\" width=\"350\" height=\"280\" \/><\/p>\n<p>There are very few things in life that can compare to the experience of creating your own business. As investor and former entrepreneur James Caan expresses it: \u201cNothing will ever replace the thrill of creating a profitable company from scratch.\u201d<\/p>\n<p>Starting a small business is a matter of self-selection and self-determination. While the founders of small businesses still are a part of the society they live in, their business ventures can allow them to step into an alternate reality, part of a social order in which each person\u2014regardless of gender, race, ethnicity, religion, birth, or circumstances\u2014can achieve their fullest potential and receive recognition for their achievements.<\/p>\n<p>A small business owner has an extreme amount of latitude in both business and lifestyle choices, from developing the business concept and operating environment to defining success. The benefits\u2014measured in impact, revenue, or infrastructure terms\u2014are essentially unlimited. Perhaps the most nebulous, but important, benefit of being a small business owner is the freedom to choose your business\u2019s purpose and goals.<\/p>\n<p>The flip side is that you own the decisions and the results of those decisions. Evasion is not an option: you can\u2019t say, \u201cit\u2019s not my job,\u201d point fingers, shrug, or check out. Additionally, as a small business owner, you will probably be risking your own (and, perhaps, friends&#8217; and family&#8217;s) capital. Essentially, you\u2019re flying without a net. There\u2019s no guarantee of a regular paycheck and no paid or subsidized benefits (including a retirement plan, holidays, or perks). You\u2019re responsible for business development, business planning, HR, IT, and every other function as well.<\/p>\n<p>Freedom from an employer\u2019s expectations comes at a cost: you\u2019re responsible for setting and managing expectations\u2014for yourself and others\u2014and for making the magic happen.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_101ae61c-ffb7-4157-bcac-fb1a52979267\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/101ae61c-ffb7-4157-bcac-fb1a52979267?iframe_resize_id=assessment_practice_id_101ae61c-ffb7-4157-bcac-fb1a52979267\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-52\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Advantages and Disadvantages of Small-Business Ownership. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Day 22. <strong>Authored by<\/strong>: David Childers. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/davidchilders\/6799551981\/\">https:\/\/www.flickr.com\/photos\/davidchilders\/6799551981\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":78,"menu_order":11,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Advantages and Disadvantages of Small-Business Ownership\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Day 22\",\"author\":\"David Childers\",\"organization\":\"\",\"url\":\"https:\/\/www.flickr.com\/photos\/davidchilders\/6799551981\/\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"9aca5732-5ed4-4115-a727-60963d791d99, 4305949c-83d4-47c8-add3-5c301ab4694b","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-52","chapter","type-chapter","status-publish","hentry"],"part":87,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/52","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/users\/78"}],"version-history":[{"count":36,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/52\/revisions"}],"predecessor-version":[{"id":15321,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/52\/revisions\/15321"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/87"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/52\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/media?parent=52"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=52"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=52"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/license?post=52"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}