Entrepreneurial Challenges and Strategies for Success

This report delves into the multifaceted challenges faced by entrepreneurs when launching new business ventures. It begins by highlighting the critical role entrepreneurship plays in economic growth and societal development, emphasizing the inherent risks and rewards involved. The report systematically addresses obstacles encountered from the initial conceptualization of a business idea to its implementation and long-term sustainability. Key challenges discussed include developing a viable business vision, securing adequate capital, assembling a competent business team, finding and retaining skilled employees, identifying and retaining customers, navigating competitive landscapes, managing unforeseen business expenses, adapting to changing market trends, making effective decisions, and planning for business exits. Furthermore, the report provides actionable strategies to mitigate these challenges, including thorough competitive analysis, internal business analysis (SWOT and VRIO), external macro analysis (PESTEL), prioritizing customer value, and conducting comprehensive feasibility studies. By understanding these challenges and implementing the recommended strategies, entrepreneurs can significantly increase their chances of success in today's dynamic business environment.

Entrepreneurship

INTRODUCTION
Entrepreneurship plays a vital role in the economic growth and standard of living of the
country. As a start-up founder of nee business, an entrepreneur is not just visualising a growth
for his business but he is also contributing in the development of his local, regional or country as
a whole. The capacity and willingness develop, organize and manage a business venture along
with any of its risk in order to make a profit. Entrepreneurship is a process of starting a new
business with a vision and idea and capability to take all the risk in order to make profit. The
present report will discuss the various challenges that an entrepreneur will face in a process to
start a new business venture. Report will address various challenges that an entrepreneur will
face from the point he vision about starting a new business. Further, report will discuss various
action that an entrepreneur can take to make his new business successful.
Main Body
Entrepreneurial development has become an essential part in today's economy which
contributes in an economic development of a country. Entrepreneurship is a concept of
developing and managing a business venture in order to get profit buy taking several risk. An
entrepreneur is a person who takes a vision to start his one business and agreed to take all the
risk and rewards of starting his own business (Shepherd and Patzelt, 2011). Entrepreneur are the
persona who have the skills and initiative necessary to anticipate current and future needs and
brings new ideas in market. Thus, entrepreneurship is an action taken by entrepreneur who is a
person always in search of starting something new and ready to take all the risk to exploit the
ideas into a course of action.
Entrepreneur faces a lot of obstacles since he started a vision of new business venture.
Starting a new business might give personal and financial rewards in future, but there might be a
number of challenges at a time of starting a new business venture.
Following are some challenges that are faced by entrepreneur in starting a new business
venture:
Developing a vision and Business Idea: it is usually a first challenge faced by most of the
entrepreneur to develop a new business idea. If an entrepreneur had a idea or vision about a
business, finding the right opportunity or creatively develop that idea will become a tough task to
do. The main business challenge is to be the ability to transform that problem into an opportunity
of new business. The entrepreneurial process of creating a valuable thing or opportunity from
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nothing is a main task for an entrepreneur (Drucker, 2014). The entrepreneur will envision and
forecast about the future of business and work in present to make it into a good business idea.
Developing the true and actual business idea is the first task for an entrepreneur.
Raising capital for a start-up: After developing a true business idea, the next
problem/challenge which an entrepreneur will face is the need of funds to implement the idea
into action. An entrepreneur is the person who will know the idea of business. Funds can be
raised from many sources available. But to borrow money for a new business is not an easy task,
entrepreneur has to convince the investors and bank just on the basis of an idea. An entrepreneur
must possess a skills to make the investors understand about the future rewards of that business.
To overcome the challenges of raising capital, an entrepreneur should have the skills to sell his
idea and vision to the investors. Good communication and way of presentation can help the
entrepreneur in convincing the investors.
Assembling a Business Team: The third challenge that an entrepreneur will face is to assemble
the right team to work on the business idea. As transferring business idea on paper can not be
done by an individual. A potential entrepreneur will also have some strength and weaknesses,
business team will help to overcome the weaknesses of an entrepreneur. Therefore the need of a
business team should not be overlooked (Scarborough, 2016). But finding a team who can
understand the vision and idea of business as an entrepreneur does is another task. A business
team should believe in entrepreneur and his vision. A business team will comprises of banker,
financial advisor, legal advisor etc.
Finding good employees: To find a hard-working and trustworthy employees are not an easy
task. In today's era, most of the employee wants to work less and get paid more. Finding an
employee who will be as passionate as you, about delivering his services is very difficult. Hiring
the employee and make them to work as a team is another difficult task. If the best employee can
work together as a best team, the efforts is worthless. Employees will be representatives to the
customers and to the outside world. Entrepreneur should be careful in hiring the employees.
Finding good customers: the next challenge an entrepreneur will have to face is finding good
customer or client of the business. In making a business, an entrepreneur will have to face good
as well as bad customers (Vivarelli, 2013). Finding a customer who will be loyal to the company
is hard to find. Bad customers will exploit the goodwill, where good customer will help in
building the business.
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Dealing with competition: Competition is the main challenge that an entrepreneur will face
when starting a business. Competition is a challenge which will help in increasing the efforts and
building the business. Competition can be taken as a benchmark that stimulate innovation and
production of quality products at great prices. Competition is the same industry will always
motivate the entrepreneur to constantly improves its product and services.
Unforeseen Business challenges and expenses: An entrepreneur should always be prepared for
the future uncertainty that will come in any form of challenges or expenses (Szirmai, Naudé, and
Goedhuys, 2011). These business challenges should be handled properly or it can lead to ruin the
plan of entrepreneur to build a successful business. The increasing in company's expenses is
something unexpected for an entrepreneur.
Keeping up with changes and Trends: Change in industrial trend is a challenge that every
entrepreneur should be prepared of. An entrepreneur should always have eye on the current
business trend in industry, and are always ready to mould the business as per the requirement of
trend of industrial changes and trends.
Decision making: this is one of the most stressful challenges that an entrepreneur faces. Every
entrepreneur are have to take hundreds of decisions in a day. Taking effective decisions is a real
phenomenon that every new entrepreneur will have to experience.
Existing the Business: when an entrepreneur plan to start a business, the challenge of
evaluating the exit strategy is also a challenge. Its important to plan an exit strategy even before
starting a business. An entrepreneur should always have a backup plan of exiting from the
business as it is very important for the long term survival of a business. There are some
benchmark or targets that many entrepreneur made and after completing that target, they exit the
business.
A handwork will lead the entrepreneur to pass his way out of all these challenges and will
be on his way to become successful entrepreneur. An entrepreneur should always be ready to
take all these challenges and prepared to handle any uncertainties arises in his way of starting a
business venture.
An entrepreneur is one who organize a new business venture in order in hope of making a
profit. Entrepreneurship is a process of collecting and all the financial, creative, managerial
resources for a new venturer's success. It involves hard work, dedication to get the financial
return of the newly formed business (Hjorth and et.al., 2018). When you are starting out as a new
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business owner, there are always some strategies that will help in maximizing the success rate in
market place.
The following strategies will always help in taking new business to make success:
Research the competition: An entrepreneur should done a research what competition in market
is offering to its customer. He should done proper competitive analysis, that will help in finding
the strength and weaknesses of the competitors. This will help the business to improve the efforts
of business from the information of weaknesses of competitors. In order to gain more market
share and be competitive keeping an eye on the competitor is a necessity for an entrepreneur.
Determining the product and services they are offering, with their pricing strategy is very
important to evaluate and increase company's performance.
Internal analysis of business: It is a process that defines the strength and weaknesses of
company. It identifies the assets and obstacles which help in determining company's potential
and limitations. It help in developing a strategy to overcome with limitations and address
challenges to improve the performance of company. There are many ways through which an
entrepreneur can perform an internal analysis, from implementing theories like SWOT analysis
which will help in estimating strength, weaknesses, opportunities and threats of
entrepreneurship. The potential use of company's resources is important, resources can be
financial, physical , intangible, physical assets and personal assets (Parker, 2018). While doing
internal analysis, how company's resources are being used can be determined. Which will help
an entrepreneur to make strategies which reduces unnecessary use of company's resources. The
other framework which help in internal analysis of a company is VRIO analysis( value, rareness,
imitability and organisation). It mainly focuses on company's internal environment. This is an
effective tool to analyse the value of company's resources and assets, rareness of that resources
that other company cant access and the organisation that whether the company is legally bound
to use that resources.
Macro or external analysis: It is the analysis of the the external environment that can finder
the growth of a company. An entrepreneur can done external analysis through SWOT analysis
which will gives an overview about the opportunities and threat which can affect the success of
new business (Seles and et.al., 2018). External analysis will help your company to make and
implement the strategies that will the new business to move forward and become more
competitive in market. The other strategical tool that can be adopted by an entrepreneur to
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analyse the external environment are PESTEL analysis(political. Economical, social,
technological, environmental, legal) this techniques will help an entrepreneur to understand
various external factors that influence the success oh new business. A proper analysis of market
condition, current economic trends, demographic etc. are some other macro factors that should
be analysed by entrepreneur to maximize the success of its new business venture.
Customer value: One of the best way to be ahead of your competitors is to provide high quality
products to the customers with the same rate as the competition. Keeping customer value is the
most important thing for any business venture to make his business successful and competitive in
the market (Kirzner, 2015). An entrepreneur should have a picture as how the customer looks at
their business. To increase the customer base and loyalty, a business has to take care of the needs
and wants of customer from the product and services company is offering to them. “Customer
are the king of market” to satisfy their needs is the fundamental way to create way for new
business to become successful.
Feasibility analysis: It is an analysis to check the viability of the new idea. This study is very
important in knowing the successfulness of new business idea. This study can be used in many
ways which will focus on the proposed business venture. A feasible business venture is one
where the business will generate adequate cash flow and profits agreed with all the risk that
needs to be taken. The goal of the study is to emphasize potential problems that occur in a
business idea that will help in determining whether the new business idea is good or not. It also
helps in evaluating how ans where the business should operate, potential obstacles and challenge
that an entrepreneur may face, competition in market and the fund required to start a new
business venture. The purpose of feasible analysis is to know different determinants involved in
starting new venture and how it would be accepted in the market and the potential target
customer. Feasible study is an action taken which would describe possibility of attaining success.
A proper feasible analysis is important for an entrepreneur to know hoe feasible is his idea of
new business, how much it will cost to him, the possible profitability or success rate that he can
earn through his new business venture.
CONCLUSION
From the above study it had been concluded that entrepreneurship is very important
not only for the growth of an entrepreneur but also from overall economic development of a
country. It is shown that just had a vision or idea of a new business is nor sufficient to start a
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business, starting a new business venture is very difficult. It had been articulated in report that
there several challenges which an entrepreneur faces to start a business venture (The Importance
of a Feasibility Study, 2018). From funding challenge to effective team requirement, starting a
new business is not an easy task. Further, report has been concluded that once a business started,
there are many actions which an entrepreneur has to take to make his new business successful.
Fro internal to external environmental analysis, competitive and customer analysis has been
discussed which help entrepreneur to make effective strategy to make his new business
successful.
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REFERENCES
Books and Journals
Shepherd, D. A. and Patzelt, H., 2011. The new field of sustainable entrepreneurship: Studying
entrepreneurial action linking “what is to be sustained” with “what is to be
developed”. Entrepreneurship Theory and Practice. 35(1). pp.137-163.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Scarborough, N. M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Vivarelli, M., 2013. Is entrepreneurship necessarily good? Microeconomic evidence from
developed and developing countries. Industrial and corporate change. 22(6). pp.1453-
1495.
Szirmai, A., Naudé, W. and Goedhuys, M. eds., 2011. Entrepreneurship, innovation, and
economic development. Oxford University Press.
Hjorth, D. and et.al., 2018. Organizational creativity, play and entrepreneurship. Sage.
Parker, S. C., 2018. The economics of entrepreneurship. Cambridge University Press.
Seles, B. M. R. P. and et.al., 2018. Business opportunities and challenges as the two sides of the
climate change: Corporate responses and potential implications for big data management
towards a low carbon society. Journal of Cleaner Productio. 189. pp.763-774.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Online
The Importance of a Feasibility Study .2018 [Online] Available
Through:https://smallbusiness.chron.com/importance-feasibility-study-69080.html
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