Entrepreneur

The term entrepreneur is used for a person who has set out to establish his/her business alone and without any particular backing. They may however approach venture capitalists or promoters to help their case who would help their venture in the initial and the formative stage and then leave it to them once the initial hiccup stage is over. To help you when you are establishing your own business, there are many sources that are available to help you with valuable tips and information, related to facts that you should know, such as: the minimum amount of capital that you should have before you are considering going and registering yourself as a company or as a partnership firm etc, the minimum number of partners that you should have, in case of a partnership firm; the most feasible source of financing your venture that is the best for you and the business in the long term. The most important information that a prospective entrepreneur should know is the eligibility criteria, with respect to qualifications and experience that is required and is imperative as per the Company Act.

Further, when you are looking to establish your own venture there are various forms of organizations that you may register your venture under. These may be sole proprietorship, partnership firm, public limited company, private limited company: that are all based on different criteria. However, out of all the above, you do need a minimum number of years of successful running in the market, to be able to go in for public subscription of shares and to establish yourself as an owner of a public limited company. The most preferred form of ventures that almost all kinds of entrepreneur businessmen go in for are the sole proprietorships and the partnership firms. While were you to go in for a partnership firm kind of an organization, the risk would be divided and the losses would not have to be borne by one person alone, there are many ambitious persons who prefer sole proprietorships. When you go in for this kind of a business venture then you are alone: you would have to hunt for feasible sources of capital funding alone, bear the cost of funding alone, and share the profits that you reap alone; even bear the losses alone. The liability is also to be borne alone. This is not the case for partners, where there is no requirement for you to bear the risk alone. There is also limited liability for all partners here: that is in case of liquidation of firm, there is no need for the personal assets of the partners to come into the picture.