Entrepreneurship - Research Paper Example

Such a simplistic definition is not so all-encompassing as the true definition of the word; however, it helps provide the reader with a baseline of pre-conceived notions regarding the scope of understanding associated with entrepreneurship. As compared to a host of other types of jobs accessible to people, being an entrepreneur is unique in that it requires an individual with a host of natural, learned, and inborn talents to compete successfully in hostile marketplace. As such, the successful entrepreneur must embody self-discipline, timeliness, attention to detail, readiness to risk, calmness, and self sacrifice, just to name a few.

Furthermore, it is incumbent on most entrepreneurs to be responsible for nearly every aspect of business management in the beginning stages of business start-up. As a result, the burdens associated with accounting, cash flow, marketing, support, product development, and market entry and expansion can often be too heavy a burden to bear for a single individual, which often leads to eventual withdrawal of a business from the market before any recognizable profit potential is generated. Accordingly, the most dangerous stage of entrepreneurship is the uncertain outset, when cash flow has not been established, personnel have not been hired, and the kinds of product/service supply and demand have not yet been fully differentiated.

However, although this analysis has briefly acquainted the reader with a very simplistic definition of entrepreneurship, the complicated paths, directions, and decisions associated with entrepreneurship are infinitely more complex than can be implied by a cursory definition of the term. For instance, one of the primary needs that an entrepreneur must address is which direction he/she wishes to take his/her growing firm in the future. Business owners or would-be business owners are often acutely aware that they wish to run their own business but often less aware of which form that business will take in order to generate profits and provide them stable employment.

For instance, would-be entrepreneurs are often acutely unaware if they wish to pursue sole proprietorships, general partnerships, limited partnerships, regular corporations, S corporations, non-profit corporations, professional corporations, limited liability corporations, professional limited liability corporations, or partnership limited liability corporations. Each of these forms of incorporation has varying advantages and drawbacks; accordingly, each will be determined based on the type of business one is engaged in, how many overall partners may eventually be included, the size and scope of the business in its ideal form, as well as the amount of money the business is expected to generate in 1, 5, and 10 years time.

On the overall level of difficulty, sole proprietorships are often the easiest to create and maintain. Because the business and the owner are essentially the same entity, decision-making comes down to a single person without the need to consult boards, chairpersons, or shareholders (Freeman, 2007). Additionally, sole proprietorships also offer a degree of cost savings due to the fact that there are no fees associated with the creation of the business entity. However, the main disadvantage of this type of business is that the owner is directly and personally responsible for any losses, legal issues, and/or judgments.

A second major drawback is the