Before looking at the challenges facing entrepreneurs, it is important to define who an entrepreneur is. Entrepreneurs are basically people who organize and operate businesses. They are commonly known as businessmen because they take the financial risk of running businesses.
When a person decides to start or run their own business, there are a number of entrepreneurial challenges that are likely to be faced. Real entrepreneurs who love what they do don’t let these challenges stop them from starting or running the business of their dreams. Entrepreneurs can face challenges from numerous many sources that include both internal and external challenges.
Common external challenges can be brought about by things like competitors, financial institutions that refuse to fund your business, the government in cases where government agencies refuse to issue the required business licenses among other external factors that affect your business. Internal challenges on the other hand are brought about by internal factors of your business which are far more crucial to the success of your business.
Both internal and external factors require certain different strategies for them to be addressed adequately. Below are some of the most common internal and external challenges that are facing entrepreneurs today:
Lack of Capital
This is by far the greatest challenge of all challenges facing entrepreneurs today around the world. Most entrepreneurs go into business with inadequate capital hoping to secure more capital once the business begins to grow. Most entrepreneurs however face capital challenges a few months after operation. When capital challenges are not addressed in time, most businesses fail. It is therefore important that entrepreneurs do the necessary research before starting a business to avoid facing capital challenges before the first year of operation. Sticking to a budget is one way of avoiding capital challenges. Also,...