Bonuses play a crucial role in entrepreneurship for several reasons:
1. Motivation: They serve as powerful motivators, encouraging employees to exceed their performance targets and contribute to the company's growth. 2. Retention: Well-structured bonus programs help retain top talent by providing financial incentives that make it harder for competitors to poach key employees. 3. Alignment of Goals: Bonuses align the employees' goals with the company's objectives, fostering a sense of ownership and accountability. 4. Attraction: Attractive bonus programs can help in recruiting high-caliber talent, giving the company a competitive edge in the job market. 5. Recognition: They serve as a form of recognition and appreciation, boosting employee morale and job satisfaction.