Advantages of Starting a Small Business (Essay Sample)

Methods of Starting Business
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Advantages of starting a small business
Personal satisfaction
Starting a small business enables the owner to derive personal satisfaction. That is because the owner becomes the boss and pursues his/ her strategies to improve the enterprise (World Bank Group, 2015). Succeeding as a boss makes one derive priceless personal satisfaction that makes one explore his capabilities.
Flexibility in making changes to deal with shifting business conditions
Small business beginners are more flexible in terms of making quick and necessary changes required in dealing with changing conditions in business (World Bank Group, 2015). That flexibility enables small business beginners to respond timely to changes in the market and hence allowing them to be ahead of large business owners who need time to strategize.
Personalized and exceptional customer service
Starting a small business enables one to deliver personalized and excellent customer service with more seriousness. That is because they serve a smaller business unit and hence are in a position to determine their customers' needs, wants and even their historical tastes and preferences (World Bank Group, 2015). The exceptional service enables small businesses to establish cordial relationship with customers and hence retain them for long
Challenges of starting a small business
Time-consuming procedures
Setting up a small business involves a lot of pre-registration and registration procedures that consumes a lot of time. For instance, one has to confirm the company name to relevant authorities before being approved (World Bank Group, 2015). Furthermore licensing and identifying the suitable location of the company may take some time that would have been used to generate revenue for an ongoing project.
High initial costs
The second challenge is high costs. Establishing a small business requires paid-in minimum capital before relevant authorities approve it. Furthermore, a lot of costs are necessary in carrying out advertisements on the new product being offered hence making the initial process more expensive (World Bank Group, 2015). The venture capitalist also requi