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9. Entrepreneurship and Small Business.

9.1 Keys to success in business.

Many people find the potential independence and financial rewards that can come from owning a small business very appealing. For some, owning their own business has been a lifelong dream. For others, going into a business for themselves is a financial necessity because they have lost their jobs and there are no other available ways to earn a living. However, there are real risks and difficulties in starting any new business.

The advantages of owning your own business are following:

  • All profit is yours

  • You are the boss

  • A private business is simple. A license is all you need at the beginning

  • You made full use of your talents and knowledge

But there are some disadvantages:

Money – your income may be smaller than you expected

Working hours – you will have to work all day long without day-off and holidays

Psychological stress – you fill yourself under constant stress

The type of work – until you have not enough money to hire qualified personnel, you will have to do everything yourself

Independence – instead of one boss, you will have many – your clients, your suppliers, your creditors

The possibility of failure – a failure is always possible

8.2 The features of successful entrepreneurs. How to start one’s own business.

Small business owners are also called entrepreneurs. There are a number of misconceptions about what it takes to be an entrepreneur. One misconception is the people who go into business for themselves are high risk-takers. Another misconception is that starting a successful small business doesn’t always require a lot of formal education or prior management experience. One of the biggest misconceptions about entrepreneurship is they are only interested in making money.

There are also a number of common traits successful entrepreneur share:

  • A great deal of energy

  • Ability to establish priorities and make decisions

  • Ability to work with numbers

  • It is very important that you should do your best to reduce risk. When you start your own business, you should:

  • Obtain some experience and knowledge of management

  • Write your business plan

Take a good think before making decisions. Collect and use reliable information

Small business in Belarus is rather young phenomenon. The greatest quantity of the small enterprises was made after 1996. Small business in Belarus represents the sector of economy, which gradually increase its contribution to the general economic growth. It provides 23% of the total revenue from the realization of goods, works and services.

8.3 Franchising as a form of business.

One way to avoid some of the management headaches associated with starting a business is to invest in a franchise, an approach that enables you to use a larger company’s trade name and sell its products and services in a specific territory. In exchange for this right, the franchisee pays an initial fee and often monthly royalties as well to the franchiser.

There are three basic types of franchises. In a product franchise, the franchisee pays the franchising company for the right to sell trademarked goods. In a manufacturing franchise the franchisee is licensed by the parent company to produce and distribute its products, using supplies purchased from the franchiser. In a business-format franchise, the franchisee buys the right to open a business using the franchiser’s name and format for doing business. The fast-food chains typify this form of franchising.

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