Challenges facing entrepreneurs in growing a business
In theÂ business world,Â there areÂ manyÂ challengesÂ to beÂ facedÂ by theÂ traders, regardless ofÂ the businessÂ isÂ largeÂ orÂ smallÂ toÂ achieveÂ success challenge is very important forÂ aÂ business,Â the challenges enabling toÂ increased businessÂ profits andÂ marketingÂ ourÂ businessÂ to theÂ next level,Â whereÂ if the challengeÂ is well managed .SuccessÂ isÂ aÂ rewardÂ to theÂ entrepreneursÂ in the effort toÂ handleÂ the challengeÂ well. SuccessÂ is aÂ passionÂ for entrepreneur andÂ moreÂ effort intoÂ managingÂ a business.
We can classify the challenges into 5 classes: Economic Challenges, Political Challenges, Social-Cultural Challenges, Technological challenges, physical challenges.
Economic challengeÂ isÂ aÂ challengeÂ thatÂ is oftenÂ givenÂ attentionÂ byÂ manyÂ businesses.
WhenÂ goodÂ economic conditions,Â businessÂ will beÂ developedÂ andÂ constantly evolving.
WhenÂ theÂ economicÂ slowdown, theÂ businessÂ willÂ beÂ slowÂ andÂ decliningÂ profitsÂ resulting inÂ someÂ companiesÂ intoÂ bankruptcy.Â Economic includesÂ factors thatÂ affectÂ purchasing powerÂ andÂ consumer spending patterns. A country withÂ open economyÂ willÂ createÂ huge marketÂ opportunities, andÂ forÂ some countriesÂ thatÂ practiceÂ subsistenceÂ economy,Â the marketÂ offersÂ littleÂ opportunity forÂ the market.
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These twoÂ types ofÂ marketsÂ haveÂ purchasing powerÂ andÂ consumerÂ buying patternsÂ are veryÂ different.
For example,Â the crisisÂ of economic downturnÂ thatÂ occurredÂ inÂ 2009,Â hasÂ ledÂ some companiesÂ thatÂ nearly wentÂ bankruptÂ companiesÂ suchÂ asÂ AIGÂ CompanyÂ andÂ General MotorsÂ CompanyÂ in need ofÂ financialÂ aidÂ the United States. NewspaperÂ alsoÂ reportedÂ thatÂ as many asÂ 140,000Â workersÂ mayÂ beÂ laid off in 2009Â if theÂ economic downturnÂ remainsÂ ongoing. Therefore,Â the economyÂ canÂ be saidÂ is a challengeÂ for theÂ entrepreneurÂ toÂ runÂ a business.
Political and Legislation Challenges
PoliticalÂ andÂ legalÂ challengesÂ includeÂ lawsÂ and regulationsÂ that mostly restrict activity business.Â LawÂ is factorsÂ thatÂ affect theÂ politicalÂ environmentÂ of businessÂ systems. ToÂ createÂ healthy competitionÂ andÂ protectÂ consumersÂ andÂ to protectÂ society and the environment,Â the governmentÂ formulatesÂ lawsÂ andÂ regulations toÂ ensure thatÂ all merchantsÂ comply withÂ the lawÂ andÂ responsibility. TheÂ enforcementÂ isÂ carried outÂ by theÂ governmentÂ such asÂ the pricingÂ ofÂ controlled goods,Â wagesÂ and environmental protectionÂ work. Sometimes,Â theseÂ controlsÂ willÂ lead toÂ entrepreneursÂ unable toÂ reapÂ maximum profit. Hence,Â an entrepreneurÂ mustÂ understand theÂ politicsÂ andÂ lawÂ of a countryÂ deeply
so thatÂ decisionsÂ andÂ actionsÂ taken will notÂ harmÂ the company.
Technological referringÂ to theÂ new creationÂ generatedÂ by the research. InnovationÂ occursÂ whenÂ aÂ better methodÂ is foundÂ from theÂ researchÂ conducted. Technology cause long-termÂ impactÂ onÂ lifestyles,Â consumption patterns andÂ publicÂ economy.
For example computersÂ areÂ anÂ innovationÂ thatÂ is alwaysÂ changing. Initially, computersÂ usedÂ toÂ replace typewritersÂ andÂ improveÂ productivityÂ throughÂ information management. Now,Â computersÂ have beenÂ diversifiedÂ so that it canÂ be usedÂ as aÂ compact disc player.
Discovery ofÂ new technologyÂ canÂ causeÂ the followingÂ changes:
creating aÂ new industry
Eliminate theÂ existing industry. For example the use of computer replacing typewriter cause Smith Corona Corp. into bankruptcy.
StimulatingÂ marketsÂ andÂ industriesÂ that are notÂ associatedÂ withÂ new technology.
TechnologicalÂ advancesÂ lead toÂ usersÂ requestingÂ betterÂ qualityÂ product.
ByÂ theÂ research andÂ developmentÂ inÂ technologyÂ isÂ importantÂ for entrepreneurs to produceÂ products thatÂ meetÂ consumer need.
Â Socio-cultural is aÂ combinedÂ setÂ ofÂ beliefs,Â customs,Â practices,Â andÂ attitudesÂ inÂ aÂ group ofÂ peopleÂ who handed downÂ fromÂ oneÂ generation toÂ anotherÂ generation. VerilyÂ the peopleÂ haveÂ aÂ lotÂ of beliefs and values. Still beliefsÂ andÂ valuesÂ thatÂ form the basisÂ ofÂ aÂ societyÂ is alwaysÂ handed downÂ toÂ children byÂ their parentsÂ since theyÂ birth. Therefore,Â businessesÂ thatÂ want toÂ penetrateÂ aÂ marketÂ must firstÂ know theÂ cultureÂ of the placeÂ asÂ aÂ place ofÂ culturalÂ populationÂ willÂ affect theÂ life style,Â how toÂ buy andÂ their thinking. StillÂ with theÂ entry ofÂ foreign culturesÂ and theÂ advancement ofÂ the countryÂ causingÂ the basicÂ beliefsÂ also change. Example,Â watchingÂ television, videos, movies,Â clothesÂ and lifestyle is the effect from foreign culture.
ForÂ businessman especiallyÂ marketers,Â the impactÂ ofÂ culturalÂ change byÂ the influence of foreignÂ culturalÂ creates a newÂ opportunities to marketÂ new productsÂ to consumers. ThisÂ becauseÂ advertising thatÂ displayedÂ by the mass mediaÂ such asÂ televisionÂ influencesÂ the way we live. Example communityÂ Malaysia previouslyÂ prefersÂ diningÂ atÂ home, butÂ nowÂ they prefer toÂ DiningÂ inÂ restaurantsÂ likeÂ Pizza Hut,Â KFCÂ isÂ the cause by the power ofÂ televisionÂ advertising. So,Â entrepreneursÂ need toÂ constantlyÂ monitorÂ publicÂ tastesÂ change to continueÂ to competeÂ inÂ theÂ market.
Physical refer to allÂ natural includingÂ water,Â air, mineralsÂ andÂ cropsÂ that becomeÂ inputsÂ to theÂ production of goods. The currentÂ issuesÂ regardingÂ the naturalÂ environmentÂ becomeÂ the attentionÂ of the world todayÂ isÂ the shortageÂ of raw material. exampleÂ is theÂ disruptionÂ of waterÂ that hitÂ the LembahÂ Klang This incidentÂ notÂ onlyÂ pose a problem Â forÂ housewives. These incidentsÂ notÂ onlyÂ pose a problem forÂ housewives, butÂ giving aÂ troubleÂ operatingÂ the company, especiallyÂ in food production. ThisÂ will thenÂ result inÂ huge lossesÂ to companyÂ as production stopped. The declineÂ of resourcesÂ cannot beÂ replaced,Â such asÂ oil,Â goldÂ and tinÂ was a great challengeÂ toÂ companiesÂ thatÂ useÂ theseÂ materialsÂ as the mainÂ production. TheyÂ had toÂ payÂ a higher priceÂ toÂ get it. AnotherÂ factorÂ that concern by the wholeÂ worldÂ entrepreneurs is theÂ pollutionÂ is getting worse, especiallyÂ airÂ andÂ water. This happened mostly driven byÂ theÂ industry's that is not responsibleÂ forÂ the environment,Â such as removalÂ toxicÂ wasteÂ andÂ dumpingÂ ofÂ rubbishÂ in everywhere.
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As an entrepreneur, success is a sweet outcome in developing a business. SuccessÂ willÂ provideÂ the power andÂ spirit forÂ theÂ entrepreneurÂ toÂ continueÂ toÂ exploreÂ and develop theÂ companyÂ intoÂ a higher level. But still,Â notÂ allÂ the entrepreneursÂ will beÂ successfulÂ inÂ business. TheyÂ need toÂ face the obstaclesÂ andÂ challengesÂ in theÂ business world.
Normally a successful entrepreneur will have features such as below:
haveÂ highÂ initiative
SuccessfulÂ entrepreneursÂ often willÂ haveÂ highÂ powerÂ initiative, has aÂ tendencyÂ toÂ look andÂ analyzeÂ aÂ situationÂ andÂ takeÂ actionÂ proactively.
TheyÂ usuallyÂ do notÂ waitÂ immediatelyÂ nextÂ opportunity.
OtherwiseÂ theyÂ willÂ try toÂ exploreÂ andÂ do notÂ give upÂ althoughÂ whatÂ they exploredÂ will beÂ unusualÂ byÂ theÂ public.
creativeÂ andÂ innovativeÂ thinking
Always create a new ideaÂ and make innovative.
CreateÂ productsÂ that matchÂ customer needsÂ andÂ improveÂ competitivenessÂ inÂ the market.
WithoutÂ thisÂ flexibility, an entrepreneurÂ is difficultÂ to maintain their businessÂ inÂ today's world thatÂ constantlyÂ changing inÂ economic, technologicalÂ andÂ lifestyle.
willing toÂ learnÂ fromÂ mistakesÂ andÂ failures
SuccessfulÂ entrepreneursÂ are notÂ afraidÂ ofÂ failure.Â They devote all their energy towards success. It isÂ importantÂ for us toÂ differentiate between theÂ failureÂ inÂ the businessÂ andÂ the failure ofÂ an entrepreneur.
AnyÂ mistakesÂ andÂ failuresÂ shouldÂ beÂ an exampleÂ andÂ usedÂ as aÂ guideÂ toÂ improve weaknesses and then achieve success.
Intelligent inÂ searchÂ andÂ seize theÂ business opportunities
SuccessfulÂ entrepreneursÂ are alwaysÂ thinking aboutÂ goals.
TheÂ goalsÂ are usuallyÂ set toÂ comeÂ fromÂ the ability ofÂ entrepreneursÂ toÂ seeÂ andÂ take advantage. Business opportunitiesÂ mayÂ occur due toÂ problemsÂ such asÂ technologicalÂ changes, consumer preferences,Â naturalÂ resourcesÂ andÂ so on.
EntrepreneursÂ should beÂ ableÂ to seeÂ problemsÂ asÂ opportunitiesÂ for earningÂ profit.
SuccessfulÂ entrepreneursÂ usuallyÂ haveÂ clearly definedÂ goalsÂ andÂ vision.
The aimÂ andÂ visionÂ is notÂ toÂ extend beyondÂ the near termÂ butÂ long termÂ andÂ in the future.
ChallengesÂ andÂ threatsÂ shouldÂ be consideredÂ carefullyÂ andÂ realistically.
able to lead
A successful entrepreneurÂ is usually aÂ personÂ with experience andÂ knowledgeÂ of technologyÂ andÂ market conditions whichÂ heÂ operates. It isÂ rareÂ to seeÂ anÂ effort being clearedÂ isÂ operatedÂ byÂ a person whoÂ hasÂ noÂ experience inÂ this field.
Entrepreneurs should be able to administer and supervise the business activities of both. Entrepreneurs need to constantly motivate managers and employees to achieve organizational goals.
emphasizeÂ theÂ excellentÂ qualityÂ of work
SuccessfulÂ entrepreneurs willÂ emphasize theÂ quality of workÂ andÂ alwaysÂ ensure that the production ofÂ standardÂ goodsÂ orÂ services is achievingÂ excellence.
High energy level
Internal energyÂ andÂ external energy are factorsÂ that are criticalÂ toÂ the launches of businessÂ venture. AsÂ entrepreneursÂ have to workÂ hardÂ andÂ workÂ longÂ term,Â it is importantÂ forÂ themÂ toÂ haveÂ high energy.
ThisÂ powerÂ allowsÂ entrepreneurs toÂ address theÂ problems facedÂ byÂ moreÂ matureÂ andÂ do notÂ give up easily.
ResearchÂ showÂ thatÂ entrepreneurs inÂ highÂ growthÂ venturesÂ exhibitÂ moreÂ concernÂ about the future. EntrepreneursÂ needÂ toÂ lookÂ smart for orientation times, identifyÂ andÂ take advantage ofÂ theÂ environmentÂ throughÂ the projectionÂ processÂ and ongoingÂ monitoring.
willingÂ to take responsibility
AnÂ entrepreneur alwaysÂ makesÂ decisionsÂ according toÂ their ownÂ discretion.
AnyÂ decisionÂ thatÂ impacts mayÂ sometimesÂ notÂ beÂ expected.
EntrepreneursÂ should beÂ responsibleÂ for anyÂ impactÂ thatÂ mayÂ occur.
Some peopleÂ believeÂ that anÂ individualÂ can beÂ trained toÂ become entrepreneurs, whileÂ some peopleÂ believeÂ thatÂ entrepreneurs are bornÂ toÂ have theÂ characteristics ofÂ anÂ entrepreneur. Today the young entrepreneur that I would giving example here is Pua Khei Seng, 34 year old, Malaysian, graduate of Master's in Electrical Control Engineering. Owner of Phison Electronics Corp. A listed technology company in Taiwan with a market capitalization of almost NT$40bil (RM4.3bil). Pua Khei Seng is a person who has high initiative.Â In year 2001, company Phison Company was came up with a product that led to the demise of the floppy disk. It was the world's first USB "flash removable disk". Most of us know it simply as a pen drive. HisÂ businessÂ in a foreign land,Â started byÂ fiveÂ friendsÂ set up aÂ research and development company, operatingÂ for 7 years, and todayÂ have achievedÂ recordÂ revenue ofÂ RM20Â million.Â HeÂ is aÂ billionaireÂ today. The development ofÂ the companyÂ is from 5Â employeesÂ toÂ 400Â employeesÂ today. The business isÂ doneÂ around the world.Â PhisonÂ has notÂ associatedÂ production line. PlaceÂ as long as peopleÂ use computers, his productsÂ areÂ soldÂ there, includingÂ the U.S. defenseÂ department.Â Now hisÂ stickÂ Pen drive, USBÂ controller chipÂ is the world'sÂ best-sellingÂ product.
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He is a very high initiative person, when he just set upÂ the company, theyÂ faceÂ a big challenge, he wasÂ charged byÂ his collegeÂ seniorÂ aÂ court case,Â and he was forcedÂ to payÂ NT45millionÂ compensation, andÂ the company almostÂ prostrate but he did notÂ choose to escape, butÂ see it asÂ a good thing toÂ stimulate their ownÂ force inÂ advance.
He also faced economy challenges, Last two year'sÂ financial turmoil has alsoÂ made himÂ loseÂ a lot of money, and heÂ read asÂ his only way toÂ each ofÂ large enterprises, the financialÂ crisisÂ can makeÂ a businessÂ more aware ofÂ their ownÂ businessÂ problems. Pua said that we should not be feeling difficult to do business in financial turmoil as an interface but this is for an industry ready to eliminate the company that didn't prepare to face financial turmoil.Â InÂ the second halfÂ of 2008, the Phison Electronic companyÂ soldÂ for everyÂ unit product byÂ losingÂ a fewÂ dollars, His company was having the mostÂ stocksÂ in Taiwan, there areÂ hundreds of millions stock.Â At that time,Â pua khei sengÂ select toÂ liquidatorsÂ because he cannot seeÂ the economy future.Â This timeÂ the financial turmoil let himÂ grow upÂ fasterÂ thanÂ the other industryÂ because heÂ goesÂ faster thanÂ the industryÂ one step. This year, theÂ jointÂ Phison CompanyÂ has already begunÂ to make money, andÂ started to enterÂ into the marketÂ of theÂ industry USBÂ controller chipÂ product. This isÂ because Pua know that the market nowÂ starting facedÂ stock shortage, andÂ PhisonÂ Electronic CompanyÂ is one of the big suppliers that suppliedÂ more normal andÂ fasterÂ delivery ofÂ goods.
The early bird catches the worm. When Phison establishedÂ newly, Pua Khei SengÂ and hisÂ partners areÂ go out early in the morningÂ and returned in midnight.Â TheyÂ leave the houseÂ from morningÂ 6 o'clockÂ untilÂ midnight atÂ 2or 3Â o'clock, every day. He said we should be able to administer and supervise the business activities of both. Pua also said that, if you want your staff and employee work hard with you, we have toÂ thinkÂ the position ofÂ the employees, especiallyÂ when employeesÂ have financialÂ problems. We need to constantly motivate managers and employees to make sure that they will achieve organizational goals.
When aÂ business isÂ a lot ofÂ peersÂ in theÂ competition,Â sure mustÂ beÂ someone company that try to sell the product with the lowest price. Therefore, weÂ need toÂ carry outÂ reforms, and has creative and innovative ideas to enhance competitiveness. In addition,Â technologicalÂ must alwaysÂ improveÂ toÂ reduceÂ production cost. This also can increase the competitiveness in the market.
With the critical challenges, finally Pua Khei Seng success with RM20 billion in revenue records and he is a young entrepreneur and billionaire today, businessÂ doneÂ around the world. Now hisÂ stickÂ Pen drive, USBÂ controller chipÂ is the world'sÂ best-sellingÂ product.
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