ENTREPRENEURSHIP

Detailed explanation-1: -The Bottom Line All business ventures aim for profitability. Owing to the high-risk/high-reward scenarios of entrepreneurial ventures, entrepreneurs expect to make substantial profits, provided that they plan their activities carefully and meet their objectives effectively.

Detailed explanation-2: -Earning a profit is important to a small business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit.

Detailed explanation-3: -Entrepreneurs seek to generate revenues that are greater than costs. Increasing revenues is the goal and that can be achieved through marketing, word-of-mouth, and networking. Keeping costs low is also critical as it results in higher profit margins.

Detailed explanation-4: -Business owners are in a unique position to build their wealth. As a business owner, you can build your wealth through your business. You have more control over the money you bring in, the profit you create in your business, and what to do with that profit.