1B Personal motivation for starting a business

Financial Independence

Having control over the finances, and therefore can determine your own income

Weakness of Financial Independence

If a business is financially unsuccessful, ability to pay expenses is limited

Strength of Financial Independence

Business owner is responsible for all business related decisions e.g amount of money that they pay employees and themselves

Personal Independence

Having fill control over the business

Weakness of Personal Independence

Working for an employer can limit your ability to make decisions to hav full control of their business

Strength of Personal Independence

Greater control/flexibility over your lifestyle, work life balance

Making a profit

The motivation to earn significant income

Profit

Money that remains once you deduct expenses from revenue

Weakness of “Making a profit“

Generating significant profit takes time

Strength of “Making a profit“

Adds to personal wealth

Fulfil a market need

Finding a gap in the market where customers desire a particular good or service.

Fulfil a social need

Provide a business with an objective. Contributing positively to a need that exist within society