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1. Limited business opportunities.

Not every good idea can become a blockbuster business. Just because you
passionately believe that your product or service is great, and everyone needs
it, doesn’t mean that everyone will buy it. There is no substitute for market
research, written by domain experts, to supplement your informal poll of
friends and family.

2. Slim or no revenue model.

Even a non-profit has to generate revenue (or donations) to offset operating

costs. If your product is free, or you lose money on every sale, it’s hard to
make it up in volume. You may have the solution to world hunger, but if
your customers have no money, your business won’t last long.

3. No written plan.

Don’t believe the myth that a business plan isn’t worth the effort. The
discipline of writing down a plan is the best way to make sure you actually
understand how to transform your idea into a business.
2)Failed in marketing

Weakness in marketing has also become a major factor Bumiputera entrepreneurs failure in
business. They do not know to distinguish a real target market; they treat everyone as the target
customer. In addition, they are also not able to meet the requirements of customers, causing
customers to shift direction toward other traders. Most businesses do not perform activities of
planning and market research. Decisions to meet the needs of customers are usually made by
Bumiputera entrepreneurs themselves without getting return information from the market.

3)Lack of skilled workers

One of the challenges faced by the SME sector is also lack of skilled labor. Normally, firm are handled
by workers with inferior educated. Most firm are facing recruitment problems because they are not
able to offer salaries and conditions of service, unable to provide a complete employee training
schemes. At this point, large firms offer better employment conditions, thus, leaving firm workers
who are less educated and low-skilled to handle business operations. Lack of knowledge, skills,
training and employee commitment directly affects firm sector.

1)Problems to market the product

Bumiputera entrepreneurs are also experiencing challenges to market products in local

supermarkets. Production of similar products complicated listing the products by the supermarkets
because of the limited display space. Therefore, Bumiputera entrepreneurs should not focus on the
range of products for the future, but, get specialized in producing one specific product with high
quality in order to be the best in the market and beat the competition. There are also moments
when some products cannot be sold within a period of time in the supermarkets. In addition, the
entrepreneur fails to deliver products that meet the total orders and time set by the supermarkets.

Greetings to Dr. Raja Nazim Bin Raja Abdullah and my fellow coursemates.

Financial Conditions

A company’s financial conditions are of a major concern to investors and creditors. As capital
providers, investors and creditors rely on a company’s financial conditions for both the safety and
profitability of their investments. More specifically, investors and creditors need to know where
their money went and where it is now. The financial statement of balance sheet addresses such
issues by providing detailed information about a company’s asset investments. The balance
sheet also lists a company’s outstanding debt and equity components, and so debt and equity
investors can better understand their relative positions in a company’s capital mix

Cash Flows

A company’s profits reported in the income statement are accounting income and most likely
contain certain non-cash elements, providing no direct information on a company’s cash
exchange during the period. Moreover, a company also incurs cash inflows and outflows during a
period from other non-operating activities, namely investing and financing. To investors, cash
from all sources, not just accounting income from operations, is what pays back their
investments. The importance of the cash flow statement is that it shows the exchange of cash
between a company and the outside world during a period, and so investors can know if the
company has enough cash to pay for expenses and asset purchases

Shareholders’ Equity

The statement of shareholders’ equity is especially important to equity investors because it

shows the changes in various equity components, including retained earnings, during a period.
The amount of shareholders’ equity is a company’s total assets minus its total liabilities,
representing the company’s net worth. A steady growth in a company’s shareholders’ equity by
way of increasing retained earnings, as opposed to expanding shareholder base, means the
accumulation of investment returns for current equity shareholders.
1)Measuring Progress

Using finance and accounting tools to monitor progress and, when necessary, make adjustments is
crucial for a business.

First, measuring actual progress versus predicted progress helps to keep you honest. Are you hitting
the targets you set?

By accurately measuring results that are tied to individual effort, you can reward top performers.
What is measured gets done, and people who know they will be held accountable make better
predictions and are more productive.
Measuring progress in a way that links profits and processes helps your business become more
productive because it allows you to highlight bottlenecks and problem areas. Tying expenses to
those responsible for them and sharing information helps prevent fraud, and also helps you keep
investors and employees informed. Transparency leads to more trust and a stronger sense of

Finally, measuring progress helps you spot trends in revenues and costs early, so opportunities can
be exploited and problems corrected before they pose a real threat to your business.


One of an entrepreneur’s objectives is to make compelling predictions about the future in a way that
attracts others to work on a shared vision that will change the world in some way. A group of people
who have a common view of the future can work together to gather assets and to design and create
processes that will help attract and satisfy customers in a way that makes the most efficient use of
physical resources. In a sense, and within limits, entrepreneurs can shape the needs and desires of
customers and transform raw material in a way that changes and shapes reality

An entrepreneur makes predictions through three basic projections: future revenues, future
operating costs, and assets needed to service future demand. Accounting and finance can help
because they give us analytical tools to make projections and to link what we expect to happen in
the real world with the value added by our efforts.

In the early stages of a venture, projections can unite a team by making a fuzzy vision more
concrete, measurable, and actionable. Steps can be broken out so progress can be measured.
Quantitative goals can motivate.