Challenges Faced by New Ventures in Managing Growth Process and Manner of Playing Out

Running head: ENTERPRENUERSHIP
Entrepreneurship
Name of the Student:
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Table of Contents
Introduction:....................................................................................................................................2
Challenges Faced by New Ventures in Managing Growth Process and Manner of Playing Out. . .2
Conclusion:......................................................................................................................................6
References:......................................................................................................................................7

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Introduction:
The report aims at providing an insight into the challenges faced by the new ventures in
managing its growth process. The report also puts forward an explanation of the challenges in
reference to relevant examples. There are close to around 50 million new ventures launched each
year. However, the question remains in the fact as to how many such ventures are able to survive
the rough waves of the change that put forwards various challenges. Such challenges are not only
gradually transforming the nature of the new ventures but are also bringing in a change in their
overall functionality. The growth process of the new venture also faces different opportunities
and problems leading to different solutions. However, recognition and overcoming of the
common pitfalls is necessary for new venture to not only thrive but also grow. It is also crucial in
ensuring the necessary steps for the management of growth process of the new venture and make
sure that the chosen methods of today do not create additional problems for the future.
Challenges Faced by New Ventures in Managing Growth Process and Manner of Playing
Out
Challenges of Keeping with the Market:
New ventures usually do not perform an extensive market research before seeking for
growth that can lead to the risk of making outdated business decisions there leading to the failure
of the business (Ross 2013).
Case Example:
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For instance, the new ventures should understand that there is a constant change in the
business challenges that calls for the need of a constant market research. The more a new venture
seeks growth the more the competitors notice them. Therefore, a new venture should keep note
that the market-leading offer determining the growth of the venture may be no better in few
months time. This will primarily lead to the shift of the loyal customers to the alternative
customers providing better deal. This also leads to the squeezing of the sales growth, profit
margins and the product age. A new venture also faces challenges in understanding the lifecycle
of the products that helps in maximizing the overall profitability (Bjorkdahl and Holmen 2013).
There might be challenges in the management of the growth process due to the lack of
investment in innovation that helps in streaming profitable and new products into the market.
Challenges Faced In Planning:
While managing the growth process of new venture, revisiting and regular up gradation
of the business plan is necessary. With the growth of the business, there should be an evolution
of the strategy in accordance with the changing circumstances (Nunan and Di Domenico 2013).
While seeking the process of growth most new ventures focuses on winning newer customer
instead of maximizing the growth with the existing customers.
Case Example:
For instance, the attempt of creation of new relationships of new ventures might pose
challenges for it as it lowers the profit margin and the sustainability factor of the business. The
existing business relationships on the other hand provide higher potential of the profit along with
providing the required cash flow. The new venture will always try to adapt to the same business
model for it growth process that might pose as challenging, as there are other available strategic