Question

2- In a short essay write down five obstacles or challenges that you might face in starting your own
business.

Answer 1

When an entrepreneur starts a new business, he has to face many challenges such as establishing a brand, beating the competition, or making a profit. Apart from these general threats, he has to come across some financial challenges also. The following are some common challenges or obstacles a new entrepreneur faces :

• Raising of capital : A fair amount of capital is required to start any type of business. Raising such capital is a big challenge for the entrepreneur
• Developing a business idea : The first and foremost challenge for a new entrepreneur is the developing of a new business idea. The idea is the base of success of the business. So it must be innovative and effective to attract the customers.
• Building a business team : An entrepreneur has to build a team for carrying out the business functions. The success of the business lies on how efficiently the business functions are carried out by the team. Developing an efficient tea is another obstacle
• Unforeseen expenses : Unexpected expenses may occur in future like bad debt, taxes etc
• Marketing or dealing competition : Establishing a brand in the market and facing competition is very difficult. Marketing strategies must be effective to attract customers
• Keep up with industrial changes : The products should be able to cope up with the industrial changes and trends. That is a big challenge.
• Hiring employees : Hiring efficient employees for the business is an another obstacle. Human resource is an asset of the company because the success and failure lies on the employee performance. Entrepreneur has to employ good employees.