1.5 - entrepreneurs and leaders

• Lack of training / knowhow


  • Many entrepreneurs lack training or know-how of just how to start a business
  • This can put off people who would like to start their own business, but are just not sure how to get started
  • Many of the sites e.g. eBay and Etsy contain lots of information on how to start a business
  • HMRC and Gov.uk website contains information to help entrepreneurs to get started
• Fear of failure


  • Many potential entrepreneurs do not start a business for fear of failing
  • It can be the failure itself or the cost of failure which may put potential business users off
  • Especially if they are giving up a regular salaried job to start out on their own, this is a risk
• Lack of confidence


  • Many potential entrepreneurs lack the confidence to embark on a new adventure with their start up business
  • This can be a huge barrier to them becoming an entrepreneur
  • This can be overcome with training, information and marketing, when they are sure they have a product which will sell they may gain confidence
• Risk


  The possibility that the business will have a lower than expected profit or a loss
• Financial risks

  • Starting a business can be a financial risk for the owner
  • The owner may put their own cash and other assets (e.g. a van) into a business
  • If the business is sole trader or partnership then they have "unlimited liability" which means they could lose their personal assets to pay the business debts
• Lack of security


  • If an entrepreneur has a regular job, and they decide to leave that job to open their own business this is a huge risk
  • They may have a mortgage, a car and other bills to pay
  • Also there may be insecurity of sales with falling consumer incomes
• Uncertainty

  • When businesses are unable to predict external shocks or future events
  • Uncertainty (unlike risk) is not objective and does not assume knowledge of alternatives