Reasons why people start businesses (Motivations)

Profit is the driving force for some entrepreneurs and thier businesses, some entrepreneurs start businesses to maximise thier revenues.

Profit Maximisation:   Profit maximisation is making as much profit as possible in a given period of time.

• Profit maximising entrepreneurs are motivated by profit and the financial return on thier efforts.
• Profit maximising entrpereneurs are more likely to take bigger risks.
• Profit maximising entrepreneurs are argued to MARGINALISE the needs of other stakeholders. For example : Providing mimimum wage and zero hours contracts to the employees.

Profit Satsificing: Profit satisficing is making enough profit/money to satisfy the needs of the business owners.

• Profit satisficing entrepreneurs do not undertake the venture of expanding thier business as it would require more profit.
  
• Profit Satisficing generates enough profit to provide flexibility and the abililty to sustain a certain life style, as well as allowing for the persuit of other interests

Ethical Stance: 

• Some people in minorities set up businesses to excercise MORAL BELIEFS. For example: an environmentalist may set up a solar panel farm to contribute to the reduction of CO2 emissions.

Social Enterprise:

• Social Enterprises are aimed at the improvement of human and environmental well being.
• Social Enterprises are often referred to as Non-Profit organisations.
• Social Enterprises have a clear social and environmental aim and typically generate thier revenues through donations and trade.  For example: Fair Trade.

Independence and Freedom

Home-working:

• Some individuals set up businesses from home to become thier own bosses/ Sole Traders as it is more convinient and it entails more flexibility.