Business management - Why do people decide to start their own business

Financial independence

The capacity to support a lifestyle without having to be employed or dependent on others

e.g An account leaving their job to start their own practice to increase income and control profits

Personal independence

The capacity to be in control of decisions that affect ones everyday actions or activities

e.g someone leaving a job to start a freelance design business so they can set their own schedule

To make a profit

Money left after expenses are deducted from revenue earned

revenue - money made

e.g a chef opening their own restaurant, hoping to earn more profit than working for someone else’s kitchen

To fulfill a market need

Recognising that people want to buy something not yet available on the market

e.g a cafe opening in a suburb with no nearby coffee shops

To fufil a social need

This refers to the production or selling of goods and services for the purpose of making the world( or the community) a better place