problems of small entrepreneurship

The small business entrepreneurship has a great potential but there are some problems that are faced by the entrepreneurs.


Different problems of small entrepreneurship

1. Start-up funds

Start-up funds are needed to start a business. They can be raised from friends and family, banks or investors. The amount of money you need depends on your business plan and how much capital you want to invest in it.

There are some ways to raise start-up funds:

  • Crowdfunding – when people use their money (financial resources) to support new projects by sharing them with others through crowdfunding websites like Kickstarter or Indiegogo; this method has become very popular among young entrepreneurs who want to start their own businesses but don’t have enough capital at hand due to low income levels or lack of experience in running such companies before getting involved with this type of operation because it requires additional investment beyond what most investors usually provide initially anyway so they make sure not only do something good for themselves but also help those less fortunate than themselves too.

2. Hiring the right people

Hiring is a process. It’s easy to get carried away with the idea of hiring someone and then be disappointed when you realize that they weren’t the right fit for your business. Finding good employees can be difficult, but it’s worth it in the end if you want your company to succeed.

When hiring employees, keep these tips in mind:

  • Be careful about who you choose as long as they have an education and experience relevant to what you do (and don’t). If someone has worked at McDonald’s for 15 years but doesn’t know how many calories are in a Big Mac, then they’re probably not going to be very helpful at running a restaurant full of hungry customers who want their food now.

3. Marketing

    Small businesses should have a marketing plan in place to help them reach their target audience and get the most out of their advertising dollars. The following are some helpful tips:

    • Advertising: A small business can use traditional forms of advertising like newspaper ads and radio spots, but these are expensive options that require a large budget. Instead, you may want to consider social media platforms like Facebook or Instagram; they’re much cheaper than traditional media but still effective at spreading the word about your company’s products/services! You’ll also want to make sure that you’re posting consistent content on these sites—it doesn’t matter how many times someone sees it if he or she doesn’t remember seeing it before.

    4. Investor relations

    Investors are important to the success of any business. They can help you raise capital, secure funding for expansion or development, and give you access to valuable connections in the marketplace. However, it’s important that investors understand your goals and plans for growing the company before giving money.

    You should also be prepared for investors who want to take control of your company after providing financing—a situation that can cause problems down the line if not handled properly. If this happens:

    • Avoid letting them assume control over day-to-day operations; instead assign responsibility based on skill sets (e.g., sales vs marketing). This way everyone understands their responsibilities while preventing any conflict between departments within an organization where one person may feel threatened by another’s position while they’re trying hard not let anything come between them working together toward common goals.

    5. Overcoming fear of failure

    The biggest obstacle to entrepreneurship is fear of failure. If you can’t overcome this fear, you will never be successful. However, if you learn from your mistakes and make them until they become second nature, then it becomes easier to take risks and start new businesses.

    When I first started my own business I was scared out of my mind! I was afraid that if someone said no or something went wrong with one of our products then we would loose everything we had worked so hard for over the last few years (which was quite a lot). It took me many months before I realized that what mattered most wasn’t whether or not everyone loved their product; what mattered most was whether or not they were willing to buy it again after trying ours instead! This revelation helped me realize how important knowing who your target market is really is…

    6. Not all small business ideas are good

    It’s important to remember that not all small business ideas are good. Some of them may be feasible and profitable, but they can still be too risky or unsustainable for your needs.

    For example, if you want to start a bakery and make delicious pastries every day, it might be a great idea for you. But if you don’t have money for equipment or space (and maybe even some employees), then it probably won’t work out in the end.

    7. Small entrepreneurship is not maximized

    • The small entrepreneur is not maximizing his potential.
    • The small entrepreneur does not have enough capital to invest in his business.
    • The small entrepreneur does not have enough customers to maintain his or her business and make profit from it (or at least cover their operating costs).

    8. Lack of competence for entrepreneurship

    In business, a lack of knowledge is one of the biggest problem. It can be either general or specific. The most common examples are:

    • A person who does not know how to manage people and cannot organize them properly;
    • A person who lacks experience in business management, sales and marketing etc., who has not gained any relevant skills from their education or training programs; * A person with no experience in managing money and debts because his/her main job is just an employee earning a salary without any other responsibilities involved like working on projects etc.;

    9. Lack of capital to run the business

    You need capital to start a business. You can get this through loans, savings and grants.

    The main sources of capital are:

    • Savings: You have saved money from your previous jobs or investments (like stocks).
    • Loans from banks or other financial institutions like microfinance institutions (MFI).
    • Grants from government agencies such as National Small Industries Corporation (NSIC) and IDA etc., provided that it meets certain criteria such as being registered with them; having at least 50% foreign equity; having been operating for at least one year without any reported loss

    10. Products do not sell well

    One of the main problems that small entrepreneurs face is a lack of products. It is very difficult to be an entrepreneur if you do not have any product or service to offer your customers.

    Another problem for small entrepreneurs is marketing. In order to sell your products and services, you will need some resources such as money and time in order to advertise them effectively. However, if you do not have enough capital or sufficient sales volume then it will be hard for you to get investors who can finance this process because most investors are looking for high returns on their investments so they would rather invest in something that yields higher profit margins like banks or large corporations.


    Small business is a very exciting, exciting field to get involved in. If you are interested in starting your own business or learning more about it then I would recommend finding an experienced person who has been there before. This person can help guide you through the process and give advice on how best to make money with your idea.