Motivations behind starting a business

Question 1

What are the personal motivations behind starting a business?

Answer 1

Desire for independence, to make a profit, to fulfil a social need or to fulfil a market need

Question 2

What are the two questions that a potential business owner must ask themselves?

Answer 2

1. Am I motivated enough to want to do this?
2. Do I possess the appropriate qualities required to operate a business?

Question 3

Explain the personal motivation behind ‘the desire for financial independence’.

Answer 3

Often a person wants to choose where and when to work, who they work with, and whether or not they work from home. One of the greatest attractions is the idea that owners have more control over their own lives

Question 4

Explain the personal motivation behind wanting ‘to make a profit’.

Answer 4

someone willing to work hard may beleive that they can earn much more by working for themselves then they would by working for someone else.

Question 5

Explain the personal motivation behind someone wanting to ‘fulfill a market need’.

Answer 5

The potential business owner may have particular skills that can be the basis of a small business or may recognise that particular goods or services for which there is a demand are not available in a particular suburb or town.

Question 6

Explain the personal motivation behind someone wanting to ‘fulfill a social need’.

Answer 6

A person may be motivated to start a social enterprise, a business that makes a profit, or surplus, but concentrates on some sort of community or environmental need. Any surplus that the social enterprise makes will be reinvested back into the business so that it can continue to fulfil the social need.