10 Challenges Every Entrepreneur Face And How To Overcome Them

Entrepreneurship is one of the toughest economic endeavours in the world. It is a challenging occupation that weighs a person down. However, some successful entrepreneurs go on to overcome the challenges of entrepreneurship. There are ways an entrepreneur can overcome challenges to establish himself or herself as a successful entrepreneur. In this article, we’ll be examining challenges a regular entrepreneur encounters and how to overcome them. 

How to Overcome 10 Challenges Entrepreneurs Encounter

1. Unfavorable Political Policies

Unfavourable and bad political policies are one of the major challenges entrepreneurs experience. Bad political and economic policies of a government can ruin an economy, thereby hampering the establishment and growth of businesses. Government policies can affect the economy through unstable exchange rates, inflation, and so on, making the business environment toxic. 

Entrepreneurs can overcome this challenge by making plans for how their businesses can survive amid the hard economic policies. Entrepreneurs should plan their business ahead of the ideology and economic policies of their government. 

2. Lack of Capital/Funding

This is another major challenge entrepreneurs encounter–lack of capital or funding, especially in poor countries. Business owners find it hard to obtain capital and funding, and it can damage the establishment and progress of businesses. In Nigeria’s case, it is very difficult to get funds and loans, stifling business growth. 

The challenge can be overcome by seeking capital and funds from a wide range of places like family members, friends, cooperative societies, commercial banks, and so on. Business owners should also do well to apply for grants. 

3. High Cost of Running Business

The other challenge entrepreneurs encounter is the high cost of running a business. There is a high cost of running a business in Nigeria, for instance, and it affects the smooth running of the business. The situation of the economy affects the cost of running a business making it hard for businesses to survive well. 

This problem can be overcome when the owners of businesses look at the aspect of reducing the cost of running a business like reducing the workforce, getting alternative sources of power, and other forms of reducing the cost. 

4. Inefficient Employees

Inefficient employees are also another problem that can affect a business and an entrepreneur. Inefficient employees can be disloyal, incompetent, and grossly selfish. They can run down a business with their negativity. An entrepreneur should be careful when he or she is employing people to ensure competency and loyalty is a top-ranking factor when workers are employed. 

5. Poor Power Supply

Poor power supply is also another grave issue that entrepreneurs have to deal with. This is because power supply is essential in running businesses. The lack of power supply or poor supply can hamper the success of running a business. 

The poor power supply can be tackled by entrepreneurs by getting alternative power supply like solar or wind power supply. Uninterrupted power supply contributes very well to the success of a business. 

6. Poor Infrastructure

The challenge of poor infrastructure is also a great challenge for entrepreneurs. The lack of roads, railroads, and other vital infrastructure needed for the smooth running of business, can be a huge challenge for entrepreneurs. This issue comes from the government who are supposed to provide the right infrastructure. 

Entrepreneurs can overcome this challenge by adapting to it until the government provides the right infrastructure. For instance, in case of bad roads, entrepreneurs should get tough vehicles that can function optimally on bad roads. 

7. Insecurity

Insecurity is another big issue for entrepreneurs. It can be so frustrating in countries that are so bedevilled by insecurity. To overcome this, entrepreneurs need to be security conscious and avoid unsecured hotspots while running their business. 

8. Stiff Competition

Stiff Competition is another issue that entrepreneurs encounter. There is usually competition in business, and an entrepreneur will have to deal with the competition. Competition can kill a business if it is not well managed. It can be handled by an entrepreneur when he or she deploys a strategy to beat and come out on top. An entrepreneur needs to be dogged and persistent in his business, using a unique strategy to beat other competitors. 

9. Lack of Vital Business Information

Lack of vital business information can be another damaging challenge. An entrepreneur has to have the right business information before embarking on any business to avoid failure. A lack of business information will cause the failure of a business even when the business hasn’t started. 

10. Lack of Commitment and Consistency

Lack of commitment and consistency is a great factor that contributes to the failure of businesses around the world. An entrepreneur will have to be committed and consistent to achieve the success he needs in his business. Even when the business seems to be failing, the entrepreneur must remain committed and consistent to achieve business success. 

Conclusion

Being an entrepreneur is a daunting endeavour that people get away from; it can be very tedious and discouraging. There are several challenges entrepreneurs encounter in running their businesses, but there are also ways these challenges could be overcome. To be a successful entrepreneur, the person will have to have all the qualities needed in an entrepreneur.