Assignment on Entrepreneurship (docs)

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Entrepreneurship
Table of ContentsINTRODUCTION...........................................................................................................................1Main Body.......................................................................................................................................1Challenges involved in the process of starting a new business venture....................................1What actions can an entrepreneur undertake to maximise the likelihood of success in the start-up process....................................................................................................................................4CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONAn entrepreneur is a person who comes with an idea to start a new venture and takes allthe necessary steps for its formation.There are many issues or challengesinvolved in theprocedure of establishing a new enterprise or business such as raising of funds, taking decisionsor gathering resources. These challenges will be examined in this report along with theactionsan entrepreneur can take to maximise the likelihood of success in the start-up process. It is veryimportant to identify and manage various issues faced by a business man in order to achieveorganisational goals and objectives. Different effective strategies to overcome the challenges arediscussed in this assignment.Main BodyChallenges involved in the process of starting a new business venture.Entrepreneurship is a process of starting a new business along with taking risk with aview to earn growth and profits in the future. There are many challenges which are faced by anentrepreneur while starting a business, some of them are briefly described below:Capital: Business can never start without capital. Raising of finance is the biggest challenge thatis faced by an entrepreneur (Parker, 2018). Every business man needs capital to run venture,Some people already have large amount of money from the last business they have sold or maybe from any other sources. Whereas, many people don't have enough money to start a newestablishment so they need to raise funds thus it affects in opening a new venture. There aremany ways to get funding like from bank loans to family and friends. Cost of capital is to bebeardby business man for raisingcapital from any source. Best source should be decided afterconsidering all the aspects and funds must be raised from the same point. If an entrepreneurplans to have an investor then the biggest challenge is to make them understand about thebusiness and trust is required to develop among those investors.In order to open or establish anew business venture it is very essential to have enough financial resources or funds. Lack offunds or capital can negatively influence the development of a new venture. Capital is needed forgetting a new place, hiring staff and performing business operations which is not possible is thereis no sufficient capital available with the organisation(Lounsbury and Glynn, 2018) There aremany financial institutions from where money can be raised and business can be expanded.Right business location:Location affects the business and its growth to a great extent. Businessman should find such location where it is easy for customers to reach. In case of a small1
company,Premises should be at such place that it becomes convenient for employees and everyother staff members to reach. But to find a good location is not easy, it involves high rent or highbuying prices for premium location. So it is a big challenge that is faced by an entrepreneur todecide location of venture (Lipset, 2018). Many other aspects such as transportation facilities,availability of raw material in case of manufacturing unit etc. should be considered. Every factoris to be taken seriously so that it will be easy for entrepreneur to run the new business venture.Human resource:Manpower is the biggest resource that an organisation can possess. Afterraising funds next big challenge is searching and recruiting skilled people for the business entity.Selecting right employee or candidate is a big challenge for every business man.Reviewingresumes, taking interviews and going through the entire procedure takes lots of time and it is achallenging task for businessman to find out the right candidate. Selecting the right person afterconsidering all those factors which are required to perform the particular job role in thecompany. Training program should bedesigned by entrepreneur so that they can give training tonew joinee for the work they have to perform in the organisation (Höglund, Holmgren Caicedoand Mårtensson, 2018)Brilliant team of employees can take the establishment to another level.Human resources can use their brains and share new ideas, innovations to the new venture. Theyalso help in growth of company by working in the right direction which has been provided tothem. An entire team is required to be hired for different type of work. For handling work relatedto finance accountant is required to be employed. Likewise, person for every field that isnecessary to make organisation run should be hired. Due to insufficient manpower a new venturecan get negatively affected as every new business needs to have sufficient human resourceswhich can perform various functions. These functions includes marketing, accounting,management and operations, a strong workforce is essential to perform these functions so thatbusiness goals can be achieved effectively.Decision making:It is one of the challenge that is faced by an entrepreneur who isestablishing a new business venture. Every single decision related to establishment affects theentire organisation. Decision maker is not only responsible for success and failures ofestablishment. Various other factors like changes in competitor's strategy and sudden changes intax and laws of Country also affects the new business enterprise. While starting a new businessevery decision is a challenge for the entrepreneur (Schwens and et.al., 2018).One needs to bevery attentive and consider all the factor and its impact before making any decision. Decisions2
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