Challenges faced by entrepreneurs

1. CHALLENGESFACED BY
ENTREPRENEUR

2. Topics
• Who is an entrepreneur?
• Importance of an entrepreneur
• Role of entrepreneurship in economic development
• Challenges faced by entrepreneur

3. WHO IS AN ENTREPRENEUR?
• Entrepreneur is one who innovates, raises money, assembles inputs,
chooses managers and sets the organisation going with his ability to
identify them and opportunities which others are not able to identify and is able to
fulfil such economic opportunities.
• An entrepreneur is a person who organizes a venture to benefit from an opportunity,
rather than working as an employee.
• Entrepreneurs play a key role in any economy.
• These are the people who have the skills and initiative necessary to anticipate current
and future needs and bring good new ideas to market.

4. IMPORTANCEOF AN ENTREPRENEUR
• Entrepreneurs create jobs
• Entrepreneurs create change
• Entrepreneurs add to national income
• Promotes research and development
• Promote capital formation
• Balance economic development
• To promote innovation

5. ROLE OF ENTREPRENEURSHIP IN ECONOMIC
DEVELOPMENT
• Promotes capital formation
• Create large-scale employment opportunities
• Contributing towards innovation and R&D
• Promotes balances regional development
• Reduce concentration of economic power
• Wealth creation and distribution
• Improvement in the standard of living
• Preventing industrial slums
• Increasing gross national product and per capita income

6. CHALLENGES FACED BY ENTREPRENEUR
• Finding the Right Business Location
• Finding Good Employees
• Assembling a Business Team
• Raising Capital for Startup
• Dealing with Competition
• Keeping Up With Industrial Changes and Trends
• Down in the Doldrums
• Overestimating
• Focus

7.  FINDING THE RIGHT BUSINESSLOCATION:
Finding a good business location at the right place is definitely not easy, it is one of the
challenge faced by entrepreneur. An efficient location that has a rapidly growing population,
good road network and other amenities at a good place.
 FINDING GOOD EMPLOYEES:
Business owners know how difficult it is to find a hardworking, trustworthy employee. Most
employees want to work less and get paid more. Finding a good employee who will be
passionate about delivering his or her services is quite difficult. Employees are the
representatives to business customers and the outside world. They are a reflection of the
business culture and ethics.

8.  ASSEMBLING A BUSINESS TEAM:
The challenge that an entrepreneur will face in the course of starting a small business from scratch is
assembling the right business management team. The process of building a business team starts
even before the issue of raising initial start-up capital arises. Most brilliant ideas and products never
get funded because the entrepreneur is trying to raise capital as an individual.
 RAISING CAPITAL FOR STARTUP:
The next challenge that the entrepreneurs face when starting a business from scratch is that of
raising capital. An entrepreneur is the only one that knows business idea to the core. Trying to
convince investors about something that doesn’t exist is definitely a challenge. Trying to make them
understand that they are trustworthy and equal to the task is not child s play especially when
building the first business.
There is more to raising capital than just simply asking for money. Most investors want to invest in
already established businesses with minimal risk and they want to be sure that they get returns for the
risk they took.

9.  DEALING WITH COMPETITION:
Competition is the next challenge an entrepreneur will face when starting a business. Most
individuals see competition as a plague but competition as a good challenge. Competition is
a benchmark for creativity, the main engine that stimulates innovation and production of
quality products at great prices. Without competition, there will be no innovation and
without innovation, the world will be stagnant.
 KEEPINGUP WITH INDUSTRIAL CHANGES AND TRENDS:
Change in trends is a challenge an entrepreneur must be prepared for when starting a small
business. Trends have made and broken lot of businesses. profitable businesses that
have been wiped out by slight industrial changes and trends. Seasoned entrepreneurs
know that trend is a friend and are always willing to swiftly adjust their business to the current
trend.

10.  DOWN IN THE DOLDRUMS:
According to several studies, entrepreneurs are more prone to depression and anxiety
than the average company employee.
 OVERESTIMATING:
Another challenge entrepreneurs face is overestimating their initial success. company in
1 year and made millions that you can do the same.
 FOCUS:
Entrepreneurs also face another challenge in this area. They focus on the wrong
things. They spend too much time building their product without validating that
the marketplace wants needs and will actually pay for it.