Barrier s to be ing a n entre pr eneur

Entrepreneur Barriers
Ge nera l F act ors
Access to finance Government regulations Social / cultural attitude Education / skills training Business support Administration hurdles Competition Corruption Market demand

Entrepreneur Barriers
In di vi du al R isks
Financial risk Social protection risk Fear of failure Workload / pressure to perform Gender

Entrepreneur Barriers
Acce ss t o fi nan ce
Knowledge of where to obtain financing Lack of institutions willing to take a chance on a young start up Need someone to stand as surety for you
GENERAL FACTORS

Entrepreneur Barriers
Gover nme nt Regu lations
Bureaucratic obstructions Eg: Company Registrations Eg: VAT Registration
GENERAL FACTORS

Eg: Reporting requirement

Entrepreneur Barriers
Soc ial / Cul tural at tit ude
Society is still very risk adverse Older generation still carries the “get a job” attitude Entrepreneurs are viewed as people on a pedestal and not everyday folk

GENERAL FACTORS

Entrepreneur Barriers
Edu cation / Ski ll s train ing
Basic education is still repetition based and doesn’t encourage big picture thinking Required entrepreneur and practical skills are not taught at school level
GENERAL FACTORS

Adult courses are expensive Skills provided don’t match market opportunities

Entrepreneur Barriers
Bu sin ess Suppor t
Lack of mentoring & counselling support for young entrepreneurs Limited access to affordable working space
GENERAL FACTORS

Difficult to gain access to the correct business networks

Entrepreneur Barriers
Admin is tration Hur dl es
Need to meet licensing & regulatory requirements Eg: Tax regulations – unsupportive & complex Eg: Tax level – very high for start up
GENERAL FACTORS

Eg: Bankruptcy laws – leveraged towards business failure

Entrepreneur Barriers
Admin is tration Hur dl es
Need to meet licensing & regulatory requirements Eg: Property, copyright & patent regulations – poorly enforced or too strict
GENERAL FACTORS

Eg: Competition law – restricted market access Eg: Subsidies & national trade policy

Entrepreneur Barriers
Com pet ition
Easier entrepreneurial opportunities are flooded • Eg: Restaurant industry • Established market players hold influence and can use cut throat techniques

GENERAL FACTORS

Entrepreneur Barriers
Cor rupt ion
The tender process and available contracts Easier entrepreneurial opportunities are flooded • Eg: Restaurant industry • Established market players hold influence and can use cut throat techniques when they feel threatened by a new competitor

GENERAL FACTORS

Entrepreneur Barriers
Mark et De mand
Deciding on how to place and sell yourself in the market when there is a demand but entrance into it is hard A great idea doesn’t necessarily equal great market demand or sales
GENERAL FACTORS

Entrepreneur Barriers
Fin ancia l Ri sk
Could lose savings which have been used to build a failed business No security of where the next pay cheque is coming from Cashflow structuring vs chasing the carrot is a critical balance to find Ability to repay the loans and credit that has been taken

INDIVIDUAL RISKS

Entrepreneur Barriers
Soc ial Pro te ct ion Risk
Give up pension, medical aid and other corporate benefits No back up or safety net if fail De-stable retirement plans and saving funds to finance new business

INDIVIDUAL RISKS

Entrepreneur Barriers
Fe ar of Fai lu re
Human nature to go for the “safe” play Worried about what friends and family would think if business failed – backseat drivers
INDIVIDUAL RISKS

Entrepreneur Barriers
Wo rk load / Pr essu re to P erfor m
One person performs many more tasks than usual What I put in I get out syndrome
INDIVIDUAL RISKS

No opportunities to take a laid back day Stress from family / self to perform

Entrepreneur Barriers
Gender
Society view that women are not entrepreneurs Difficulty encountered in obtaining finance and buy into ideas from independent parties
INDIVIDUAL RISKS