What are Five Disadvantages of Entrepreneurship?

By Durga Prashanna Mishra|Updated : August 26th, 2022

Entrepreneurship is the activities required to set up a business. There are various advantages and Disadvantages of Entrepreneurship. It requires the ability to handle and judge the possible risks. No doubt, Entrepreneurship can be very exciting. However, it has its flip side as well. Below we have mentioned the Five Disadvantages of Entrepreneurship.

Five Disadvantages of Entrepreneurship

The major five disadvantages of Entrepreneurship are as follows:

  • Uncertain Income- Entrepreneurship doesn’t ensure a certain and stable income like a job. There is no fixed income for the entrepreneurs, and income is not guaranteed in the early stage of the business.
  • No fixed working hours- apart from uncertain income, the entrepreneurs have to suffer with no fixed working hours.
  • Risk of Failure- the initial stages of the journey of an entrepreneur can be very challenging. There are risks that the business strategies may not work, which will lead to losses in business.
  • Lack of Investors.- it is a lot difficult to earn the trust of the investors, and hence investors have to start the business in debt.
  • More Stress- running a business from scratch requires a lot of effort. An entrepreneur has to take care of finances, legal issues, sales, manpower, and other things to work. All of these factors lead to extra stress.

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  • The major disadvantages of Entrepreneurship include- no fixed income source, no fixed working hours, no assurance of income in the initial days, lack of investors, and more stress than usual.

  • Entrepreneurship is the act of creating your own business and working for yourself in your own venture. 

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