Name: Matthew Herbert
Challenges entrepreneurs may encounter as they try to set up and maintain their businesses
Being an entrepreneur can be a very difficult task. May problems can arise that may that an entrepreneur has to deal with. The problems include financial, location and staff. These problems can ultimately cause the business to not prosper and eventually cause it to fail and shut down. Entrepreneurs may face many challenges while trying to set up and maintain their businesses. Firstly, entrepreneurs may face financial challenges. One financial challenge is obtaining starting capital for the business. An entrepreneur usually looks for loans from banks to get his or her capital started; however, this could be problematic since banks are very skeptical of starting businesses. They, as in the banks, are worried that the business would not be able to make back to money and in turn, the entrepreneur cannot pay them back. Therefore, entrepreneurs may have difficulty finding money to start their businesses. Another, financial challenge an entrepreneur may face is that of taxes. Every company is taxed a fair amount of money. With an upcoming business, entrepreneurs are faced with the problem of getting taxed heavily by governmental organisations. For example in the United States of America, the Internal Revenue Service (IRS) taxes all business. These taxes can be very heavy. If an entrepreneur’s business is heavily taxed, it can off-balance the financial budget set out, and in turn, the business can fail and become bankrupt due to no money available. Finally, another financial challenge an entrepreneur may face is that of gaining profit. Depending on the field an entrepreneur is in, their business may not gain any profit. An entrepreneur needs profit from his business to maintain it, pay out staff, bills and for other financial needs. Without any profit, the business can subsequently fail. Finances are very crucial for an entrepreneur...
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