CLIFFORD UNIVERSITY OWERRINTA, IHIE ISIALANGWA NORTH

L.G.A, ABIA STATE NIGERIA.

AN ASSIGNMENT ON THE TOPIC:
ISSUES OF BUSSINESS GROWTH
PRESENTED BY:
NNAMDI AUGUSTINE
REGNUMBER: CLU/16/SC/CSC/017
DEPARTMENT:
MATHEMATICS and COMPUTER SCIENCE
FACULTY: SCIENCE
ON THE COURSE:
ENTREPRENEURSHIP SKILL II (GST 212)
LECTURERS:
MR. CHRIST O. UFOMBA & MR. OMEONU O. OBIOMA
DATE: 29- OCTOBER - 2020
Introduction

Business issues and probles today are the challenges that the small small-scale businesses are
having that have ristrain them from having an edge among their competitors. Growing
businesses face a range of challenges. As a business grows, different problems and
opportunities demand different solutions - what worked a year ago might now be not the best
approach. All too often, avoidable mistakes turn what could have been a great business into an
also-ran.Business growth challenges become more and more apparent as you bid to build your
business.

Achieving consistent, sustainable growth is likely to be a fundamental goal for your business.
Expansion can lead to all sorts of exciting opportunities for the company and new experiences
for employees. But it’s important to be prepared for the obstacles that might arise on the path
to long-term success.From keeping your loyal staff happy to maintaining efficiency in an
increasingly complex organization, here are some of the challenges your firm could encounter
as it grows, and some tips to overcome the.

Statement of Business Issues

We never like to rely on one source to fuel our analyses of the problems facing business today,
so we’ve integrated our own interviews with corporate CEOs along with other inputs, research
and thinking to create this list of the top 10 problems for businesses to solve.

1. Uncertainty

All human beings, but it seems business leaders in particular, find great discomfort in
uncertainty. Uncertainty in the global economy, uncertainty in the credit markets, uncertainty
in how new regulations will affect business, uncertainty about what competitors are doing, and
uncertainty about how new technology will affect the business—these are just the start of a
never-ending list. The bottom line is that uncertainty leads to a short-term focus. Companies
are shying away from long-term planning in favor of short-term results, with uncertainty often
the excuse. While this might feel right, we believe that a failure to strategically plan five years
into the future can end up destroying value. The problem to be solved, therefore, is to balance
the need for a more reactive, short-term focus with the need for informed, long-term
strategies.
2. Globalization

In interviews conducted by the Lean Methods Group, seven of 10 Fortune 500 CEOs cite the
challenges of globalization as their top concern. Understanding foreign cultures is essential to
everything from the ability to penetrate new markets with existing products and services, to
designing new products and services for new customers, to recognizing emergent, disruptive
competitors that only months earlier weren’t even known. The problem to be solved is to
better understand international markets and cultures through better information gathering and
analysis of what it all means.Similarly, the incredible degree of government intervention in
nearly all major economies of the world is leading to much greater uncertainty (see No. 1
above) in the global marketplace, making international operations ever harder to manage. Big
companies are struggling with innovation and a better innovation process is at the top of the
agenda for most CEOs.

3. Innovation

Interestingly, we haven’t found that many companies are looking to create more innovative
cultures. At least not the big companies (Global 1000) anyway, though that changes some as
companies get smaller. This finding was a big surprise when we did our first studies in 2009 and
little has changed since. It seems big companies are struggling with innovation and a better
innovation process is at the top of the agenda for most CEOs, but the idea of a more innovative
culture appears too frightening to many. The problem to be solved is how to become more
innovative while still maintaining a sense of control over the organization.

4. Government Policy & Regulation

A changing regulatory environment is always of concern in certain industries, but uncertain

energy, environmental and financial policy is complicating the decision making for nearly all
companies today. It’s true that things seem to have settled down over the past couple of years,
but have they really? We find that they haven’t; it’s simply that dealing with an unknown
regulatory environment is fast becoming the new normal and companies are deciding to get on
with it—whatever “it” may be—despite the angst. Whether a demand from customers or
shareholders to become more “green,” the threat of increased costs due to new carbon taxes,
constant talk of changes to corporate tax rates, or the impending healthcare mandate for
businesses in the US, much is unsettled. The problems to be solved are to understand the
meaning of regulation and government policy in your industry, its implications for your
business, and to develop the skills necessary to deal with it.
5. Technology

The pace of technological improvement is running at an exponentially increasing rate. While

this has been true for several decades, the pace today makes capital investment in technology
as much an asset as a handicap because a competitor may wait for the next-generation
technology, which may only be a year away, and then use it to achieve an advantage. Of course
waiting to be that competitor can be equally risky. What’s a CEO to do? Similarly, the ability for
even the best of technologists to stay informed about emerging technology is in conflict with
the need to master a company’s current technology. The problem to be solved is to develop a
long-term technology strategy while remaining flexible enough to take advantage of
unforeseen technology developments.

6.Strategic Thinking & Problem Solving

While the first nine biggest problems faced by business are a direct result of research, the 10th
is really the Lean Methods Group’s own conclusion based on the prior nine. The lack of
sophisticated approaches to information acquisition, analysis and the development of unique
insight leaves many companies at a disadvantage; they lack a long-term strategic imperative
and instead jump from one strategy to the next on a year-to-year basis. Everyday problem-
solving competency among today’s business leaders is also limiting their ability to adequately
deal with the first nine problems. This is why corporate managers tend to jump from one fire to
another, depending on which one their executives are trying to put out, and in many cases the
fast-changing business environment is what ignites these fires in the first place. So what is the
problem to be solved? We believe, to navigate the future, companies must resolve that
strategic thinking and problem solving are the keys to successful business, then develop a
robust capability at all levels.

Review of Related Topic

According to Miles, D. Anthony (2011). The term business risks refers to the possibility of a
commercial business making inadequate profits (or even losses) due to uncertainties - for
example: changes in tastes, changing preferences of consumers, strikes, increased competition,
changes in government policy, obsolescence etc. Every business organization faces various risk
elements while doing business. Business risk implies uncertainty in profits or danger of loss and
the events that could pose a risk due to some unforeseen events in future, which causes
business to fail.[1][dead link.

For example, a company may face different risks in production, risks due to irregular supply of
raw materials, machinery breakdown, labor unrest, etc. In marketing, risks may arise due to
fluctuations in market prices, changing trends and fashions, errors in sales forecasting, etc. In
addition, there may be loss of assets of the firm due to fire, flood, earthquakes, riots or war and
political unrest which may cause unwanted interruptions in the business operations. Thus
business risks may take place in different forms depending upon the nature of a company and
its production. Business risks can arise due to the influence by two major risks: internal risks
(risks arising from the events taking place within the organization) and external risks (risks
arising from the events taking place outside the organization):

Internal risks arise from factors (endogenous variables, which can be influenced) such as:

human factors (talent management, strikes)

technological factors (emerging technologies)

physical factors (failure of machines, fire or theft)

operational factors (access to credit, cost cutting, advertisement)

External risks arise from factors (exogenous variables, which cannot be controlled) such as:

economic factors (market risks, pricing pressure)

natural factors (floods, earthquakes)

political factors (compliance demands and regulations imposed by governments)

Though corporate entities may have an image of risk aversion, they may continue to stake their
reputations and indulge in their gambling propensities by sponsoring competitive sports teams

According to business Jolly, Adam (2003). The Business Issues is classified into five different
main type:
1.Strategic Risk: They are the risks associated with the operations of that particular industry.
These kind of risks arise from:

Business Environment: Buyers and sellers interacting to buy and sell goods and services,
changes in supply and demand, competitive structures and introduction of new technologies.

Transaction: Assets relocation of mergers and acquisitions, spin-offs, alliances and joint
ventures.

Investor Relations: Strategy for communicating with individuals who have invested in the
business.

1.Financial Risk: These are the risks associated with the financial structure and transactions of
the particular industry.

Operational Risk: These are the risks associated with the operational and administrative

procedures of the particular industry.

1.Compliance Risk (Legal Risk): These are risks associated with the need to comply with the
rules and regulations of the government.

Other risks: There would be different risks like natural disaster (floods) and others depend upon
the nature and scale of the industry.

Business Growth

Definition
Business Growth is a stage where the business reaches the point for expansion and seeks
additional options to generate more profit. Business growth is a function of the business
lifecycle, industry growth trends, and the owners desire for equity value creation.

Business growth capital is critical for all scale-up minded businesses. Choosing the right
business growth capital for your business takes expertise and market knowledge- as no two
companies are the same. Choose correctly, and your growth takes off. Choose unwisely and it
could be a disaster. Rather than fit your capital need to a pre-existing structure, smart
companies design their own structure to mitigate risk. Business growth is a function of
resource availability and often requires up front investment. Whether an acquisition or
business investment, it pays to be conservative in projecting returns over time. Choosing the
right business growth capital comes down to the following variables:

The size of the capital raise.

The cost of capital

The flexibility of capital.

The term structure of capital.

What Are The Real Issues of Business Growth

Growing businesses face a range of challenges. As a business grows, different problems and
opportunities demand different solutions - what worked a year ago might now be not the best
approach. All too often, avoidable mistakes turn what could have been a great business into an
also-ran.
The following issues are the major issues that the small scale businesses encountered:

1. Need for Business Innovation

With the ever-changing business landscape that we live in, doing “business as usual” isn’t
always enough anymore.

The call for business innovation this year will be greater than ever, with new technology and
improved methods coming in left, right and centre. Traditional businesses are failing to keep up
with those who are always looking to improve and innovate their business. Make sure you are
always looking for new ways of doing business, whether it’s changes to your product/service,
your business systems or your business assets.If you lack the funds to innovate your business,
you can get a business loan and make the changes you need!

2. Customer Experience

If your customers aren’t having a good experience with your business, chances are you won’t
be seeing them again! Providing a great product or service is only half the battle. If you want to
make sure you are attracting new business and hanging on to your loyal customers, you’ll need
to offer great customer service as well. Consider what struggles or negative interactions arise
when a customer is dealing with your business. Or better yet, ask them! Receiving customer
feedback is a great way to identify areas to improve.You can easily gather customer feedback
with Survey Monkey. This online surveying tool makes data collection and analysis a breeze!

3. Poor Staffing

Small business owners often have 101 things on themselves and simply can’t do everything
themselves, which is why the need to build a business team that can pick up the slack. A great
business team needs great staff, which is why your hiring process is so important. Here are a
few simple tips to help your staffing efforts: Create a great job offering and show prospective
employees why they should work for you. Post your job ads in more places. You have job sites
like Seek and Indeed, social media with LinkedIn and even staffing agencies. Don’t settle for less
than you need. You could be in business with this person for a long time and firing an employee
is never what you want. The workplace has also seen a trend towards casual employees rather
than permanent staff, and increased focus on workplace culture. These new changes can bring
new challenges, such as bullying, sexual harassment and gender equality. Not to mention the
changes that the millennial workforce are bringing, with an increased need for work flexibility
and socialisation.

4. Lack of Time
Ever wish there were more hours in the day (or less stuff on your to-do list)? With the heavy
workload that small business owners face, getting everything done can be difficult. Especially if
you are one-man-band or don’t have someone around who can help. Being more productive
with your time will help you complete your tasks and keep your business running smoothly. A
few simple tips include planning your time, creating strict timeframes, focusing on more
important tasks and taking regular breaks. To get more tips on improving your productivity,
check out The Ultimate Productivity Checklist.

5. Slow and Outdated Business Processes

Do you find yourself wasting a lot of hours on your bookkeeping?

Are you often overwhelmed with paperwork?

The software is there to help you with the mundane and time-consuming tasks that are keeping
you from more important things. Simplify your accounting, bookkeeping and record
management with Xero accounting software. It is easy to use for small business owners and is
definitely worth the cost. It will save you lots of time, neatly keep all your records in one place
and provide you with timely data for better business decisions.

6.Getting through to your potential customers

As a small business owner, you should have a pretty good idea of who your target market is.
You can also use tools like Google’s Market Finder to identify potential markets. Once you know
who your potential customers are, the next challenge is getting through to them. With the
increased amount of time that people are spending online and the move towards digital
communication, small businesses need to find new ways of getting through to their target
market. Customers will go online to research and review their options, including social media
and Google. Putting your business online and becoming part of the conversation will help
potential customers find your business. People are also more likely to talk about your business
online, so make sure you are providing that great customer experience for great word-of-
mouth.

7.Lack of business plan

Getting too caught up in the day-to-day operations can be costly, if it means you aren’t
considering the bigger picture. Having a business plan in place is the best way to increase your
likelihood of success. It will help you make better decisions that work towards your business
goals and set benchmarks and timelines, so you know how you are performing. Your business
plan should cover your finances, business operations and the marketing of your business. If you
do have a business plan, the job isn’t over yet! You should be checking in regularly and updating
your plan as your business grows and new opportunities arise. Don’t have a great business plan
yet? Download our business plan template to help you get started!

Profitability

At the end of the day, it’s your profitability that will keep your small business going. What it
takes to be profitable is specific to your business and the problems that you are currently
facing. You may not have the business or financial skills to identify what’s wrong, or you may
have simply hit a wall with your business growth and don’t know how to take it to the next
level. The best advice we have to keep your small business profitable is to get some advice.
Speaking to an expert business advisor can help you increase your revenue and profitability,
solve cash flow problems, improve your business system and more.

Conclusion

To be successful in sustainable business practices often requires entrepreneurship and

innovation. This work provides an overview of entrepreneurship and innovation as it relates to
sustainable business. The discussion is most relevant to sustainable businesses focused on
offering new products and services in response to societal concerns. The importance of
entrepreneurship and innovation also applies to companies that change how they produce
products and services.

Miles, D. Anthony (2011). Risk Factors and Business Models: Understanding the Five

Forces of Entrepreneurial Risk and the Causes of Business Failure. dissertation.com. p. 1. ISBN
978-1-59942-388-3.

Holloway, S. S.; Parmigiani, A. (2014). "Friends and Profits Don't Mix: The Performance

Implications of Repeated Partnerships". Academy of Management Journal. 59 (2):

460.

Baldwin, John and Sabourin, David (1997), Failing Concerns: Business Bankruptcy in
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