Self-Employment and Entrepreneurship

Advantages/ Disadvantages of Self- Employment Advantages 1)Independence 2) Pride of ownership Disadvantages 1)time commitment 2)uncertain income 3)possible loss of investment ( approx. 60,000 businesses fail in Canada each year)

Financing a Small Business Funds are needed to buy advertising, to pay employees, to purchase supplies, and to acquire equipment. One of the most common causes of business failure is lack of money to pay company expenses. Constantly changing exchange rates are an additional problem for small companies involved in international business.

Analyzing Costs Start-up costs are those expenses that occur when a company is new. ( i.e. purchasing equipment, legal fees, etc.) Continuing expenses are business operating costs that occur on an on-going basis. ( i.e. rent, salaries, etc.)

Analyzing Costs Variable costs are business expenses that change in proportion to the level of production. ( i.e. materials, Hydro, etc.) Fixed costs are expenses that do not change as the level of production changes. ( i.e. salaries, rent, etc.)