What Are Disadvantages of Being an Entrepreneur?

One of the major disadvantages of being an entrepreneur is that the workload is much greater. Entrepreneurs tend to work alone by nature, meaning that they may not be able to easily delegate tasks to others. At the beginning, all jobs will need to be completed by the entrepreneur, including accounting and budgeting needs. Over time, the workload of an entrepreneur can lessen, but not before the organization is established.

People who want to be entrepreneurs often think they will have much more freedom, yet this couldn't be further than the truth. At the beginning of a new venture, entrepreneurs have to work long hours and rarely get to take vacations.

Another disadvantage of being an entrepreneur is that there is a high degree of risk of folding within the first 12 months of starting up a new business. This makes it all the more important to thoroughly plan, including identifying target markets and estimating the costs needed to run the business.

Finally, new entrepreneurs often have to make do with little income until the business is turning over a regular profit. For those who do not have adequate funds saved or another source of income, this may be a problem.