Respuesta :
There are two ways to look at this question.
One way is to say that a person started a business because he couldn’t find a job or he was retrenched, so he starts a business primarily with the intention of paying bills and meeting his needs. His temperament may or may not be suited for entrepreneurship. He might just get into a job as soon as he gets the opportunity to so. Such entrepreneurs are known as “necessity entrepreneurs”.
The second way is that a person started a business because the product s/he deals is on its way to become a necessity in people’s lives. So, the entrepreneur sees an opportunity to start a business and earn profits. Such entrepreneurs are known as “opportunity entrepreneurs.” Opportunity entrepreneurs have what it takes to stick with the ups and downs of setting up a new business and turn it into a success.
A business that is started the financial needs is considered as a business out of necessity.
Further Explanation:
Business out of necessity:
When an entrepreneur establishes a business as an alternate of his income then it is considered as a business out of necessity. When an entrepreneur starts a business to fulfill his financial needs then the started business is considered as a business out of necessity. This type of business is started by the person when he loses his job and starts a business for fulfilling his financial needs. The entrepreneurs who start a business out of necessity is considered as necessity entrepreneurs.
Generally, business should be started to solve an existing problem in society. The entrepreneur should seek the opportunity to start a business.
Thus, a business that is started with the intention of fulfilling the financial needs as a business out of necessity.
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Answer details:
Grade: Senior School
Subject: Business Studies
Chapter: Types of Businesses
Keywords: What, does, it, mean, to, start, a business, out, of, necessity, type of business, entrepreneurs, establish.
