Why start a business?

The skill involved in wanting to start and run a business is called enterprise. The individual who sets up their own business is called an entrepreneur.

To start up a new business you need to weigh up the good and bad reasons to define your business

There are several reasons why entrepreneurs are willing to take a calculated risk and set up a business. Possible motives include:

  • Making a profit. A business does this by selling items at a price that more than covers the costs of production. Owners keep the profit as a reward for risk-taking and enterprise.
  • The satisfaction that comes from setting up a successful business and being independent.
  • Being able to make a difference by offering a service to the community such as a charity shop or hospice.

A new business needs its own name and a product. The challenge is to make goods and services that satisfy customers, are competitive and sell at a price that more than covers costs.