The entrepreneur faces many challenges while starting a business for scratch as well as when struggling to ensure survival in an environment characterized by cut-troth competition. This may be both internal and external factors that predispose individuals to challenges. Therefore, locating the opportunity is easy but taking the move to integrate and plan the business plan is a challenge. This is because it takes more than conception of an idea to start and run a business venture. It calls for calculated moves and decisions that are considered the most viable while providing alternative options at the same time.
The moment the plan is complete, another challenge arises, where do I get the capital? Start-up money is a challenge even for the major business in action right now. The proprietor has to convince banks and moneylenders of the viability of their venture. To be able to raise the capital, a sole proprietor must be able to present and sell the idea to investors (Howkins, 2001). The business should start with the minimum number of employees. The unexpected challenges should encourage the entrepreneur put more effort to be able to deal adequately with any eventuality. An already set up business suffers minor challenges since they have already adapted to the business trends. However, suffer from unexpected events such as severe inflation, natural calamities and employee malpractices.
Government and business
The government provides a challenge to a business in various ways. The law governing businesses may be highly bureaucratic. This tends to discourage individuals from starting, and in some cases, it drives those that are determined to go through illegal means. The government taxes every item on sale inclusive the profits realized. This minimizes the profit and thus the growth margin of the business and the consequence is a pool of demotivated entrepreneurs. The government also influences a business by issuing a rule that each business must be under a union. The union, on the other hand, may demand premiums that further increase expenses on the part of the entrepreneurs.
However, it is not always that the government affects the business negatively. On the contrary, it may offer incentives to individuals with sound business ideas. Secondly, the government influences the business through monetary and fiscal policies. This may provide business owners an opportunity to thrive even in times of economic turmoil. The central bank regulates the interest rates and supply of money to remain within limit (Howkins, 2001). In addition, the government may encourage business expansion through loans by reducing interest rates on loans.
The government may offer subsidies to Small and Medium Enterprises (SME). This will boost their income and stock. The growth of the small and medium enterprise will lead to growth of the business and the economy at large. In order to encourage consumption of domestic products and services the government may introduce tax on imports. The tax makes the import more expensive thus promoting local products. The government may also induce quotas that limit the amount of imports into the country. The government to save a local business producing the same product may issue a complete ban on import of certain commodity.
An entrepreneur should have the skills and ability to forecast, plan ahead, and process everything even before setting a go forward. This will help reduce incomplete business project, which leads to loss of time and resources. Creativity and risk taking is the main characteristic of an entrepreneur (Drucker, 2006). The idea and opportunity to invest should be nurtured well. There are considerable challenges faced by first time sole proprietors. The lack of capital source tends to reduce the zeal of entrepreneurs to move on. Unexpected changes, choice of employees, management, and location of the business too offer a challenge to the entrepreneur (Calvin, 2001). Therefore, it calls for a strong, efficient and responsible person to overcome the challenges. The government in general serves to the benefit of both the business and the customer. It provides a platform through which both the business owners and their customers benefit from the venture. This is possible through interventions such as tariffs, quotas, subsidiaries among others.