Almost every day, entrepreneurs face an endless series of challenges in their work. These challenges vary according to the work environment and the laws in force in this environment, and according to the personal qualities of the entrepreneurs, in the sense that there are external and internal challenges, “so to speak, you have to overcome them as in the dictionary of entrepreneurship the word impossible does not exist”.
The first challenge: Funding
Funding the new project is not easy, and even experienced entrepreneurs may suffer a lot to provide the necessary funding, but those with experience in this area are advantaged if compered to new entrepreneurs. Their previous relationships with investors and clients help them get the financing for any new project. In addition to this, they often have other sources of income. But as a novice entrepreneur you’ll start from scratch. “So, you should start building a network of investor relationships and look at the financing options available before you”.
The second challenge: Dispense with your old job
If you want to establish a company or develop it, and then reach profitability and success, it is difficult to keep another occupation at the same time. You may be able to manage the initial stages of the project at spare time and holidays, but if you want to seriously achieve success, you must inevitably dispense with your old job.
And to do away with a stable job that provides you with a fixed income for a new project which results cannot be predicted is not easy, so consider your data rationally before making such a fateful decision.
The third challenge: Team composition
One of the most difficult things a company’s leader faces when it comes to creating a company is to create a team, especially if you do not have previous experience overseeing employees. If this management experience is available, the formation and selection of the appropriate team for your lead company requires consideration of many factors, such as the cost of hiring, how well they integrate with the business environment, company policies, and so on.
The fourth challenge: Competition
Pilot projects often suffer from intense competition, particularly with regard to product quality and price. If you compare dairy products, for example, to one of the pilot projects, and their counterparts produced by one of the major companies, you will immediately discover the difficulties faced by the pilot projects in achieving this capacity of packaging, pricing and distribution. The volume of production and use of the machine usually contributes to cost reduction; however, emerging projects are characterized by low administrative costs and flexibility of movement and can compete in many areas.
The fifth challenge: The absence of vision
Ambiguity or blurred vision in the business world necessarily means that the project is deteriorating. The entrepreneur’s having a clear idea of the future of his project and the steps needed to reach this future will enable him to achieve his long-term goals.
The sixth challenge: Setting the rules and making the decision
The absence of internal regulations of institutions negatively affect the administrative system, so you have to establish rules and regulations within your organization, whatever small size it has in the market. The issue of decision-making within the company is the most difficult challenge: The entrepreneur is forced to make hundreds of decisions ranging from small to important decisions related to the conduct of business on a daily basis, and many new entrepreneurs may make the wrong decisions because of their little inexperience.
The Seventh Challenge: Weak planning
The majority of entrepreneurs have a common misconception: they only collect funding for the beginning, while an emerging institution has to pay enough to operate for 18 to 24 months, a period that companies typically need to generate returns. Pioneers may make another mistake: They are collecting funding for what they have today, not for the position they want for their new companies in the future.
The Eight Challenge: Marketing and Sales
Marketing studies reveal that one out of every five entrepreneurs categorizes the marketing challenge as the biggest challenge for the company, and the successful entrepreneur is the one who takes care of the challenges of marketing and sales, through the creation of the ground needed to overcome marketing problems and enter larger markets.
The Ninth Challenge: Laws and Legislations
The process of dealing with legislation and laws in some countries may waste the energy of entrepreneurs and exhaust their time; it may also increase the reluctance of investors to support new projects. Legislative systems and laws in force in the Middle East are yet far from supporting entrepreneurs.
The 10th Challenge: Lack of training or experience
Most entrepreneurs in our region do not lack innovation or talent, but the miss good training on many aspects of their business. Creative and innovative ideas often fail to attract funding as a result of the entrepreneur’s weakness in presenting the idea. At other times, emerging companies with a bright future may stop because of lack of management experience.
The 11th Challenge: Insurance and Taxes
In some cases, insurance agencies and government taxes deal with the owners of pilot projects in the same way that they deal with large entrepreneurs, and may tend not to provide exemptions and concessions – which are available for major projects – to emerging ones; resulting in increasing tax burdens on the entrepreneurs, decreasing the net profit and reducing the chances of success or growth of small enterprises.
The 12th Challenge: The personal traits of the entrepreneur
The entrepreneur is more like a leader, “so he has to master planning, follow-up and decision-making skills, as well as taking responsibility and perseverance; the lack of these features can lead to a major failure of the project.”
Entrepreneurs should work as far as possible to overcome these challenges. If they do, they will be on the right track to prove themselves as successful entrepreneurs. This does not mean that these challenges will not last, or that different new challenges will not appear, but your success in managing the project in the first months of incorporation will give you a great advantage over competitors.