17 Barriers of entrepreneurship with Solution: Every entrepreneur of this world thinks about following their passionate approach and transforming it into a successful business. However, there is no way to succeed in today’s universe without solving the major barriers of their respected field. There is a need for a highly unique approach and radical thinking for battling with competitors. It asks for a thorough thought process and a terrific plan having a clear prospect.
17 Barriers of entrepreneurship with Solution
It is essential to have a vision and mission that should be dividend according to the short term and long term missions. This post will talk about the top barriers of entrepreneurship in detail along with important information that you should know about.
- Inadequate Market Experience
The most common mistake made by a great number of entrepreneurs is beginning their business without having adequate knowledge about the respective field. It is essential to get a suitable amount of experience related to the industry by working in the required sector. Choose by understanding the nature of the market instead of rushing into this business by seeing someone successful.
Additionally, getting adequate expertise will help achieve success in the career. Although we understand that there are risks associated while starting the business, it is still important to gain the required set of knowledge to create a strong base.
Also See: Types of Entrepreneurship with Examples
- Human Resource Problems
There is no way that a person can perform everything on their own. The same goes for entrepreneurship, where a business can’t be run alone. It is essential to have human resource support for achieving success in this business. People who have the required set of experience and knowledge will agree that a team needs top-level productivity and efficiency to achieve well in this business.
The first thing to address is understanding that employees need to have a vision that suits them. Additionally, never perform things like paying a huge amount of money for the sake of experienced employees. Just go for the knowledge and try finding knowledgeable people for your startup. You need to understand that there are limited finances while starting a new business. That’s why, it is ideal for managing the human resource adequately for all the works.
- Managing Finances
A great block while beginning the startup is to manage the finances that make things difficult. There are lots of ideas that come to mind while starting a business. No matter what kind of idea you have, there is a need for stable finances and funding for making sure the process stays smoother.
It is critical to perform the first step for beginning the journey of entrepreneurship ideally. Having a wise investment will ensure you can successfully tackle one of the most difficult barriers of entrepreneurship.
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- Non Strategic Planning
A very common barrier that entrepreneurs face is inadequate planning regarding strategies. Thousands of people built a business just as a hobby without creating a long-term vision. Bad planning results in failure that should be avoided at any cost. It is the main reason most businesses shut down within the first year of their operation. There is a need for a solid passion for being an entrepreneur to create a strategic vision for reaching the goals.
It is strongly suggested to create a strategic plan that begins from the target market to the proper use of human resources. All these things are needed for creating a business that attains success in the market.
- Lack of Capacity
It needs to understand most entrepreneurs who can’t use the opportunities that are presented to them. The reason behind this is a lack of education, knowledge, willingness, and other essential things. In simple words, we will say the factor of zeal and motivation misses most entrepreneurs.
Apart from issues related to risks and the market for beginning a business, there is a need to have tons of hard work and passion for handling everything passionately. It is very helpful in reaching new heights in the art of entrepreneurship.
Also See: Factors Affecting Entrepreneurship
- Political Barriers
The political barrier also plays a great role in the success of an entrepreneur. There is a need to check out the policies of the government and what kind of incentives they are offering. After all, the government of every country doesn’t provide social-economic facilities to entrepreneurs. Additionally, the interest in economic development also needs to be taken seriously.
The political factors need to be carefully evaluated before starting your journey in the world of entrepreneurship. It will be very useful in achieving business success.
- Not Having Enough Practical Knowledge
Many youngsters believe that having an educational background is adequate for succeeding in the world of entrepreneurship, but the reality is fully different from what they thought while studying in college. There is a strong need for practical knowledge for tackling the competition that this universe offers.
It is very helpful in staying relevant for different market cycles. So, it is strongly suggested to gain practical knowledge before thinking about trying hands in the entrepreneurial world. It is one of the major barriers of entrepreneurship about which every entrepreneur should think carefully before trying their hands in the respective industry.
- Not Having the Right Team
A business can only become successful when there is the right sort of people available in your team. There is no way everything can be done on your own. The biggest issue that start-ups face is not finding good employees. It turns out to be the major hit that most of them have to deal with.
Also See: Qualities of a Good Entrepreneur
Additionally, it is common to see most start-ups works smaller that further make finding a job difficult. There is a need for making the required measures so that you end up having people who can boost your vision and help in boosting business.
- Corrupt Business Problems
A very common barrier that entrepreneurs have to feel has business situations where the corrupt environment doesn’t inspire the young employees. The government has unfriendly ties with lots of countries that make things inconsistent for the start-ups. One premier example of an unhealthy and non- supportive barrier is Russia, where the new businesses have to feel lots of issues.
It is strongly suggested to check out the stringent compliance and regulations before beginning the business. This barrier affects the success of a business on a pretty higher level, so it is essential to take things seriously.
- Reaching More People
The next barrier that most entrepreneurs have to deal with is facing difficulties in taking their brand to different people. It doesn’t matter which country you live in; a startup can lose its path if a brand doesn’t reach the required community. It includes experts and an audience for creating a successful foundation.
Also See: Disadvantages of Entrepreneurship
It is essential to create a strong foundation to achieve all your goals in the later stage. We suggest everyone consider the impact of this barrier on their success. It is good to develop effective jobs for maximizing your goals.
11. Fear of Failure
Entrepreneurship is all about the state of your mind. If you have clear vision in your mind then there can never be any fear but when entrepreneurs start his/her journey then they are always in the thinking of the initial finance, investors, ideas and many more things. All these things create pressure on mind and make any human being very tensed. By this kind of approach fear of failure is likely to come sooner or later.
12. Few Opportunities
In the starting of every business, one cannot see all the opportunities. These opportunities come when your business starts growing. Without its growth, one will always be in doubt that what is going to happen with his business. These fewer opportunities are the very big factor and a barrier to entrepreneurship.
13. No training
If you are trained for something then you must be the one who is found in companies and you must be working for them. Entrepreneurs are never the one who is trained for some specific job. They are the one who are a complete package of knowledge of all the fields.
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This thing looks lucrative in just reading because when it comes to practicality, one must have some training in specific thing so that he could start from somewhere. The very big example of training is Mark Zukerberg as he was trained in coding.
14. No Backup
It’s always the best thing to have some backup before you start diving into the massive field of entrepreneurship. But most of the entrepreneurs start their business without any backup. And this creates a barrier for them as they are always in a fear of failure.
15. No Technical Skills
These days, all the business ideas are related to tech. If you are a technology guy then it is very easy for you to start a business. Examples of technical guys are Steve Jobs, Larry Page and Mark Zukerberg. But if you are not from technical background then there will be many problems that you are going to face due to less technical skills.
16. Parental Pressure
If you are from India, then there is one more barrier for you that is parental pressure. We are not saying that parents are your enemies but for sure they are going to give you many suggestions about your business idea that they don’t know and sometimes they will try to stop you for doing business and will force you to go for a job.
17. Lack of Motivation
Believe us or not, MONEY is the biggest Motivator when it comes to business. In starting when you are building your project, you cannot expect money from it. Here comes the biggest barrier for you to be motivated even when there is no money coming out from your business.
What are the major solutions for barriers to entrepreneurship?
If there are barriers to entrepreneurship, there are solutions that entrepreneurs need to create. We have numerous requests from the youngsters who want to know about it. Let’s look at the main solutions for barriers of entrepreneurship in detail below:
- Tackling with increased overhead cost
The first thing to check in this perspective is finding which portion of the organization is using the most resources. To do so, there is a need to have solid visibility in the business. It can be easily done using the digital tools and technologies that are available these days.
Go for the cost-effective and powerful tools that allow you to control different expenses related to equipment maintenance, material, supplies, and many more. Using them adequately can help in getting great help while dealing with this barrier for sure.
- Creating a Consumer Confidence
It is important to have positive marketing strategies that target customer satisfaction in all stages. It can be easily achieved when your organization is a start-up. Just look at the company that offer maintenance solutions; it can only succeed if there are the right sort of tools for resolving the issue apart from understanding the customer issues and fulfilling their requirements effectively.
A small business can conveniently create a personal relationship with its clients. It can be used for developing cross-selling opportunities for boosting growth and revenue. This way, the company can tackle the barrier where it becomes difficult to create customer confidence in your product and services.
- Leaking Profitability and Revenue
This barrier causes problems same for both small and large organizations equally. However, it can result in threatening the growth of start-ups, and that’s why it should be taken seriously. It is suggested to use the technology for resolving this problem comfortably. Go for the tools that give real-time visibility by using the right sort of tools for finding out the sales funnel and operations.
It will also be very helpful in knowing the status of team efficiency, prospect behavior, and other essential things. There is a great range of CRM tools having solid features that can be used without paying much price. Analyze the needs of your company and purchase as per that for having better results.
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- Following Compliance
It is quite common that the companies don’t pay much attention to compliance when they struggled to create good revenues or deal with daily issues. While we understand that there are few complications to achieving success, having the right sort of solution can help make things good.
The most useful solution to this issue is making sure that everything is recorded timely. In fact, you should create rules that state record keeping will be compulsory. Following this thing will let entrepreneurs enjoy a terrific type of benefits later on.
- Employee Retention
There is a great role played by branding in the success of an organization. In order to retain employees, the companies have to provide tons of benefits like higher salaries, health insurance, etc. It is harder to offer such a level of advantages to employees for a smaller company.
In the case of a start-up, the bosses need to show empathy towards the employees. You can also develop a culture of training and flexibility to retain them in the company.
Tips for overcoming barriers of entrepreneurship
There are certain things that new entrepreneurs can do for overcoming the barriers comfortably. It is quite challenging to deal with such problems in the beginning. We have created a few tips to overcome barriers of entrepreneurship below:
- It is suggested that entrepreneurs should target creating a network with a similar vision. Having deep connections in today’s virtual world can be very handy in those situations.
- Always create a relationship with respect and thoughtfulness for all the aspects of the business. It will turn out to be real wealth as the community is the currency that matters most.
- You should never see the world from your eyes as not thinking about others can make things frustrating. Always see things with the eyes of other individuals for better results.
- The right leadership involves showing the right methods using which a team can work together. It is very crucial to have cooperation when compared to the competition. A team who work with cooperation will make things efficient for sure.
- Staying in the game is pretty hard, especially when things get rough. The winners are the ones who play the game with love and beat the challenge.
- There is a need for unconventional thinking in utilizing the power of trends. The entrepreneurs have to understand the market by exploiting the opportunities adequately.
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Entrepreneurship can only be successful if all the barriers get tackled with joy. There are tons of times where these things result in the failure of start-ups in most cases. Problems aren’t an issue, but not solving them is a problem. Always try to look for solutions to ensure success in this field.
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