Entrepreneurial obstacles are one of the most important challenges faced by entrepreneurs. Actually, at the beginning of any business, we face some limitations in different social, economic and political fields. Identifying these obstacles and preventing them from occurring can be decisive in the success of the business we are starting.
The Concept of Entrepreneurship
Designing a strategy and managing an emerging business using available resources and facilities is called entrepreneurship. In fact, having a good, reliable and viable idea can turn an ordinary person into an entrepreneur. Successful entrepreneurship requires several components such as labor force, initial capital, risk management, crisis management, management and leadership abilities. Therefore, only benefiting from financial resources or imagining managerial abilities to create a business under the title of entrepreneurship is not enough.
Types of Entrepreneurship
1. Retail Trade
Retail trades are small businesses that can be formed in the form of partnership, single company or in any other form and title. Provided that the number of their employees is a maximum of 500 people.
2. Online Investment
Such entrepreneurships can be in the form of large companies and based on the use of the Internet. For example, online food ordering applications such as Snap Food or electronic payment gateways or even online shopping sites such as Amazon.
3. Home Businesses
Such businesses can also be considered as small businesses, with the difference that they use the home environment instead of the office environment to produce their products and services.
1. Existence of Defining Rules and Regulations
The existence of some laws and regulations, instead of being helpful, is cumbersome and restrictive. Sometimes some of them may destroy the motivation and novelty of an entrepreneur’s idea and cause temporary or permanent obstacles to implement his/her ideas.
2. Financial Barriers
No matter how original and new our mental idea is, we need solid and reliable financial resources to implement it. For this purpose, we must have the best estimate of the existing and possible costs and consider the best financial resources for it. Unfortunately, due to the novelty of most entrepreneurial ideas, investors and banks do not accept the risk of investing in them. As a result, our business may fail in this period of time.
3. Fear of Failure
Constant worry about the future of the business can be another obstacle to entrepreneurship. Knowing the layers of fear and their causes and identifying the ways to deal with the existing fears can largely prevent the destruction of the business.
4. Unsettled Economic Situation
Continuous conflict and challenges in the economic path can also face serious obstacles in our business. Existence of sanctions, lack of stability in prices, changes in exchange rates, all of them will be a serious obstacle in business.
5. Lack of Experience in the Target Market
Entering a market where we don’t have previous experience to operate in may seem exciting at first glance, but it can knock our business to the ground. Therefore, gaining experience in that business or a similar business can somehow guarantee the success of our business.
6. Lack of Attention and Support for Entrepreneurs
In many countries, there is no support from managers and high-level officials for entrepreneurs.
7. Existence of Competitors
The presence of competitors, especially well-known competitors, can be a serious obstacle to our business. As a new and emerging business, our business has a long way to reach its well-known competitors and confront them.
Up To Sum
Today, many people, especially young people, are looking to start their own business and entrepreneurship. A detailed examination and recognition of the obstacles in this way can be a great help for the success of the business and prevent it from going backwards.