There are several reasons why an entrepreneur might choose to establish a wholly owned subsidiary:
1. Market Expansion: It allows for direct entry into new markets, providing greater control over the brand and business operations compared to other entry modes like joint ventures or licensing. 2. Operational Control: Entrepreneurs retain full control over the subsidiary's decisions, ensuring alignment with the parent company's objectives and standards. 3. Risk Management: It helps in minimizing risks associated with partnerships and offers a platform to protect intellectual property and proprietary technologies. 4. Financial Benefits: Potential tax benefits and the ability to consolidate financial statements can be advantageous.