In a highly competitive business environment, entrepreneurs face many challenges in the pursuit of starting a business. In a country like India, which is regarded as the hotspot of startups, the government is trying to provide a better platform for entrepreneurs by launching programs such as Start-up India and programs for encouraging local production such as the Make In India program.
Entrepreneurship has its fair share of challenges and in this article, we will be discussing all those points.
Following are some of the challenges faced by entrepreneurs in their entrepreneurship journey:
1. Cash Flow Management: Cash flow management is one of the most important components of any business. Still, some entrepreneurs find it difficult to pay their bills, while waiting for the payment to be done by the clients.
The reason for such an issue can be delayed invoicing, which is a common occurrence in the entrepreneurial world. The time taken between work done, invoicing and receipt of payment is significant and in that time the business has to run its daily operations, which requires money.
Solution for this challenge:
Appropriate management of cash flow is essential for entrepreneurs and this can be done by incorporating a down payment system for the products or services.
The option of down payment will lead to the business owners to be able to pay for the expenses incurred during the product development.
Another option is to accelerate the invoice payments. Generally, it is 30 days, but with the advancements in technology, instant payments can be done, which significantly reduces the burden on entrepreneurs.
2. Hiring Employees: Hiring of employees is another of the major issues faced by the entrepreneurs. It is one of the most time consuming activities and is therefore often sidelined by the entrepreneurs.
It will be difficult for business owners to manage daily operations and simultaneously invest time interviewing candidates.
Solution for this challenge:
It will be easy if candidates are pre-qualified, or it can happen that a walk-in interview can be conducted, which makes it easier to select the best candidates among the participants. Look for candidates with prior work experience and relevant skills which reduces the work.
3. Time Management: Time management is one of the most highlighted issues and for modern entrepreneurs, it is a difficult phase as they need to perform multiple roles.
Solution for this challenge:
Entrepreneurs can manage time effectively by charting out an action plan which sets goals of the business into weekly, monthly, quarterly and yearly objectives. Tasks that do not have importance should be eliminated first of all and those that require minimum or no intervention from the entrepreneur should be delegated to the lower levels.
4. Delegation of Tasks: Delegation of the task is essential for the success of the business. Finding the appropriate resource is necessary for the proper execution of the task. The process of finding resources is somewhat complicated.
Solution for this challenge:
For delegation to be successful, the entrepreneur must be very specific in assigning the precise tasks to the resources. Although it will be time consuming, it will be beneficial for the business in the long term.
Once everything falls into place, it will bring order into execution which leads to profit for the organisation.
5. Choosing the product to sell: The most difficult part for an entrepreneur sometimes is deciding the kind of product or service they want to sell.
Solution for this challenge:
This challenge can be overcome by seeking counselling from experts in the business and also by performing a SWOT analysis.
Also see:Â Difference Between Businessman and Entrepreneur
This concludes the topic of Challenges of Entrepreneurship, which is an important concept for the students of Commerce. For more information, stay tuned to BYJU’S.
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