Every day, an entrepreneur is facing new challenges which are different according to the work atmosphere and its rules, and the characters of the leader as well. In other words, there are two kinds of challenges- external and internal- that the entrepreneurs have to overcome based on the rule that said the “impossible” word is not existing in the entrepreneurship dictionary.
Challenge 1: Funding
It is not easy to raise funding for the new projects, and even the professional entrepreneurs can still face difficulties to fund their projects. However, it is easier for them to raise funding more than the new entrepreneurs since the first has old relations with the investors and customers who can help them in funding, as well they may have different income resources. On the opposite side, as new entrepreneurs, they have to start from zero building a network of relations with the investors and studying the available funding options.
Challenge 2: Quit your Old Job
If you wish to establish your own company or develop it, and bring it to the success or profitability, then it is hard to keep another career at the same time. You may succeed in managing your enterprise in its early stages during your free time, but if you look for success, then you need to quit your job.
Leaving a secure full-time job paying you monthly a certain amount of money for a new project which its results are not predictable is not easy, so you have to study all the project’s aspects before making the decision.
Challenge 3: Establishing the Work Team
One of the other challenges that the entrepreneurs are facing when they establish their companies is composing the team of work especially if they don’t have previous experience in supervising. In case they have experience in supervising, then they must take into consideration many factors such as the cost of hiring, the integration of employees with the atmosphere of work and the rules of the company.
Challenge 4: Competition
The entrepreneurial projects are very competitive in terms of quality and cost of the product in particular. For instance, if you compare dairy products of one of the entrepreneurial projects to its large competitor, you will find out immediately the difficulties that face the entrepreneurs to achieve such quality of packaging, pricing and distributing since the usage of the machines usually decreasing the cost. In contrast, the entrepreneurial projects are characterized with the low administrational cost and the flexibility that allow them to compete in many fields.
Challenge 5: Absence of Vision
The project will stay behind if its vision is not clear and determined. The entrepreneurs who have a clear vision for their business’s future and the right steps that shall follow will succeed in achieving its long-term goals.
Challenge 6: Setting the Rules and Making the decision
The absence of the internal rules for an institution will affect negatively the administrational system. Therefore, a set of rules should be put down no matter how small the institution is. However, the hardest challenge is to take a decision. The entrepreneur has to make tens of important decisions daily in which the fresh entrepreneurs could make wrong ones due to the lack of experience.
Challenge 7: Weakness of Planning
Most entrepreneurs are making a common mistake regarding the funding for their projects in which they raised money for only the beginning, while any new enterprises should raise funding enough in order to work for 18 to 24 months. This is the period that any enterprise needs to make profits. Another mistake the entrepreneurs make is that they raise funds for what they have today not for what they want to be in future.
Challenge 8: Marketing and Sales
The related studies show that 1 out of 5 entrepreneurs is considering the the marketing challenge as the biggest challenge for his\her company, and the successful entrepreneur is the one who cares about the challenges related to the marketing and sales from the point required to overcome the marketing difficulties in order to access the larger markets.
Challenge 9: Laws and Legislations
Dealing with the laws and legislations in some countries may lead to wasting time and energy, as well it may make the investors confused since the legislative systems and the applicable laws in the Middle East are still far away of supporting the entrepreneurs.
Challenge 10: Lack of experience or training
Most entrepreneurs from our region are talented and skilled, but they need a good training for how to manage all the aspects of their works because sometimes the creative ideas are failed in raising funds due to the weakness of ideas’ presentation. In addition, some fresh enterprises are forced to close even they have a bright future due to the lack of experience in management.
Challenge 11: Insurances and Taxes
Sometimes, the governmental insurances and taxes companies deal with the entrepreneurs as same as the way they deal with the owners of the large companies. In addition, they may not provide the privileges and exemptions which are provided for the large companies as well. Therefore, the taxes burden will increase, thus, the net profit will be reduced in which it leads to the decreasing of success’ chances or the growth of the small enterprises.
Challenge 12: Personal Characters of Entrepreneur
The entrepreneur is like a “leader”, so he\she must have the skills of planning, following up, decision-making, and taking responsibility since the missing of these skills could lead to the failure of the project.
In conclusion, the entrepreneurs shall try to overcome all those challenges, and if they succeed, they will be then on the right way to be successful entrepreneurs. However, this does not mean that they will not face any other challenges, but their success in managing the project during its first months of establishment will gives them an advantage over their competitors.