Small Business Management Psychology of Entrepreneurship

Question: Discuss about theSmall Business Managementfor Psychology of Entrepreneurship. Answer: Introduction Comparison of Advantages between Starting a New Business and Buying an Existing One: The option of starting a new business on a small scale always remains there. On the other hand, in the case of buying an existing one, it is easier to acquire finance due to the given record of accomplishment (Baum, Frese Baron, 2014). Starting a brand new business has the advantage where one can apply his or her own unique ideas without being concerned about any previous baggage. On the other hand, when one buys an existing business it already has the prepared groundwork (Baum, Frese Baron, 2014). In a new business, it will be entirely on the entrepreneur to staff his office while an existing business will have experienced employees. In a new business, one can choose his market and customer independently. On the other hand, when one purchases an existing business it has reliable customers and existing source of income (Abdelkafi, Makhotin Posselt, 2013). Comparison of Disadvantages: A new business causes a delayed profitability, as one needs time to establish it. However, one might need to invest a lot more amount to an existing business after purchasing it. While starting a new business, one has to look for new customers and suppliers whereas after buying an outlet one might need to reconsider the previous contracts made (Baum, Frese Baron, 2014). The suppliers might not extend the credit in a new business that has no history whereas the outlet considered for buying has a large sum of amount receivables. Starting a new business comes with all the responsibilities and complications while in case of buying a business a person needs to consider the factors why the existing owner is selling it (Abdelkafi, Makhotin Posselt, 2013). Advice: Considering all the pros and cons of starting a new business from the scratch and buying an existing one, it is recommend to establish a business of ones own. Despite a lot of responsibility, it entails only the entrepreneur becomes responsible for the gains and loss he or she makes. In addition to that, the market of sports goods has been consistent in the mentioned city and it is likely that one will manage to make profit even if he or she sets up a complete new one. References: Abdelkafi, N., Makhotin, S., Posselt, T. (2013). Business model innovations for electric mobilitywhat can be learned from existing business model patterns?.International Journal of Innovation Management,17(01), 1340003. Baum, J. R., Frese, M., Baron, R. A. (2014).The psychology of entrepreneurship. Psychology Press.