Nowadays, every individual is almost aware of the fact that entrepreneurship is a process of innovation and leadership only. In fact, the word entrepreneurship itself implies the phenomenon of risk-taking for profit in all spheres of business. Hence, here lies the dark side of entrepreneurship, which will be in the form of prominent drawbacks throughout the article.
Life Cycle of Business Venture:
Entrepreneurs are eager to gain profit in the first stage of any entrepreneurial development because they know that competition with other industries or businesses can take place at any time in future. Such competition brings about a pressing threat which cannot be resistible; therefore they resort to declare the ownership (of an invention for instance) in order to protect the business especially when the risk is in the increase, business failure is in sight and profits are less.
The Breakdown of New Small Firms:
Although most of entrepreneurs are creative, not all of them are good at creating ventures and then fail to manage business progress. All of this is due to incompetence in managing, lack of experience, lack of financial control and often failure to create entrepreneurial changes or advances. At large, starting up a firm business entails more dedication and discipline as long as entrepreneurs might face obstacles which themselves become impossible afterwards.
Wrong Decision-taking:
Sometimes a manager might not be knowledgeable about things which might happen in the future then taking a decision could become hard and inappropriate. Besides, the decisions could be ambiguous in that it fuses risk and uncertainty, which pushes the managers to minimize their greatest loss or maximize their lowest returns.
Poor Business Plans:
A clear business plans document plays a vital role in any financial setting. Nowadays, a majority of entrepreneurs face some difficulties when setting a plan because anyway they are afraid such plans would be of poor quality with uncertain goals. Consequently, the opportunities when emerging become a failure because the managers can no longer alter their plans according to the situation they are in.
Financial Risk:
Entrepreneurs are known for striving to save their own resources which are at stake. At any time, they can meet financial obligations when there is no assurance of an income; therefore they lose money if the venture fails. There would be bankruptcy if they are not enthusiastic to start a new business.
Career Risk:
At this juncture, entrepreneurs are said to be worried about whether they can find a new job or continue back their current one if their ventures fail. This mostly targets people with a secure organizational job and a high profit.
Family and Social Risk:
Socially, managers are supposed to encounter various relationship dilemmas that result in complex ethical problems owning to roles and relations that change from pre-venture to post-venture status. Hence, they may need to spend their effort and time on incomplete family experiences and emotional scars which can take place either separately or together at times.
