KK2 Personal motivation behind starting a business

Question 1

Name four personal motivations on why individuals start businesses

Answer 1

There are four main reasons why people start businesses:

1) The Desire of Financial and Personal Independence

2) To Fulfil a Social Need

3) To Make a Profit

4) To Fulfil a Market Need

Question 2

To make a profit

Answer 2

The monetary reward (profit) is a large motivating factor.
It’s important to note that your business will not generate profit immediately. In fact, you may lose money during your early start up phase. However, if you’re dedicated and work hard, you will enjoy the monetary benefits later down the track.

Question 3

to seek financial and personal independence

Answer 3

‘Financial and personal independence’ which allows individuals to take full control and responsibility over their incomes and work-life in their personal business opposed to working for a company or Corportation.

Question 4

to fulfil a market need

Answer 4

A market need is when a particular good or service is not available in a particular suburb or town. You may notice this gap and be motivated to fulfil this gap.

Question 5

to fulfil a social need

Answer 5

To fulfil a social need is to fulfil a community or environmental need.
For example, providing opportunities for local unemployed people.