Even with the recent spate of financial crises, poor economy and corporate scandals, I find it wise to start a business as long as one is capable of doing so. By analyzing the recent scandals that rocked businesses, one might be able to outline their causes and therefore avoid getting caught up in a similar situation.
In the field of business, financial crisis is a common occurrence. When analyzing the various factors affecting the starting and running of a business, an entrepreneur must always consider the issue of financial crisis (Allen et al., 2007). However, this cannot be a substantive reason to avoid starting a business enterprise. Furthermore, it is extremely difficult to forecast the exact status of the economy in the future since it depends on various unpredictable and dynamic factors. Therefore, the poor state of the economy should not be cited as a prime hurdle to starting up a business (Sullivan, 2007). Given availability of funding, I would take a calculated risk and go on to establish a suitable business enterprise.
An entrepreneur should select the form of business ownership that significantly favors the individual situation and nature of business. However, it is essential to analyze the risks involved before selecting the preferred form of business ownership (Howkins, 2007). The limited liability form of business ownership is best suited for highly risky businesses enterprises. In case of a partnership or private limited liability company, an entrepreneur can reduce liability by limiting the share of capital contribution to the business. However, the registration procedure of limited liability companies could be too demanding especially in terms of financial resources and time. Sole proprietorship type of ownership requires the full commitment of the business owner. This form of business ownership is appropriate for an entrepreneur with a sufficient amount of time for running the business. However, if skilled labor is required, other forms of ownership may be more appropriate in order to allow the partners or co-owners to provide specialized manpower. In addition, the requirement of high amounts of initial capital to finance the establishment of some businesses may necessitate the inclusion of partners to supplement the initial capital (Scarborough, 2007). Proprietors interested in having the full control of a business should choose sole proprietorship because the other forms of business ownership consist of some restrictions on their operation.
I am inclined to disagree with the argument that simultaneously running a business and studying in campus is counterproductive. Of late, campus student have diverted from the traditional rules regarding education and started setting up businesses while studying. This emerging trend has faced condemnation by many education experts. Most college students are young adults who face little risk in case of failure of a business investment (Simmons, 2003). It is therefore advisable for students to engage in entrepreneurship in order to learn the art of running a business. In case of failure of a business enterprise, students can take advantage of their young age to start all over again. In my opinion, an individual’s financial stability cannot be realized through salaried work alone. Therefore, there is the need to establish business investment throughout one’s life. I think that it is advisable for a student to engage in a form of business that will not significantly interfere with his or her studies.
Balancing between studies and business can be achieved since institutions offer an ideal environment for operating small businesses. In addition, the location of the business does not need to be far away. The ability of the student to run a business may also depend on the academic course that the student is perusing. Some courses are more demanding compared to others. Consequently, there are many determinant factors, which affect the ability of a student to run a successful business while satisfactorily attending to his or her studies.
References
Allen, F., & Gale, D. (2007). Understanding financial crises. Oxford: Oxford University Press.
Howkins, J. (2007). The creative economy: how people make money from ideas. London: Penguin.
Scarborough, N. M., & Zimmerer, T. (2006). Effective small business management: an entrepreneurial approach (8th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
Simmons, M. (2003). The student success manifesto: the guide to creating a life of passion, purpose, and prosperity. New York, N.Y.: Extreme Entrepreneurship Education Corp.
Sullivan, A., & Sheffrin, S. M. (2007). Prentice Hall economics: principles in action. Boston, MA: Pearson/Prentice Hall.