1B Personal Motivation for Starting a Business

Question 1

List the personal motivations for starting a business

Answer 1

Financial independence
Personal independence
Making a profit
Fulfilling a market need
Fulfilling a social need

Question 2

Define financial independence

Answer 2

In owning your own business, you have control over the finances, and therefore can determine your income.

Question 3

Personal independence

Answer 3

Personal independence enables the business owner to have full control of their business. This includes planning, day-to-day operations and financial control.

Question 4

Making a profit

Answer 4

The motivation to earn significant oncome in many cases, drives individuals to start their own business.

Question 5

Fulfil a market need

Answer 5

Finding a market where consumers desire a particular good or service is vital for a business owner.

Question 6

Fulfil a social need

Answer 6

Fulfilling a social need, like a market need, provides a business with an objective. This includes contributing positively to a need that exists within a society.