GROWTH AND

CHALLENGES
OF
ENTREPRENEU
 INTRODUCTION
▪ Entrepreneurship comes with a host of challenges.

▪ Challenges may be rewarding, but at the same time,

these are very harsh and tricky.

▪ Recognizing and overcoming the common pitfalls

associated with beginning and growth of the business
is essential if the enterprise has to survive, grow and
make profits.

▪ New start-ups fail to take off or simply fail because

2 founders’ inability to understand and handle market
STAGES OF
DEVELOPMENT
IN AN
ENTREPRENEUR
IAL FIRM
An entrepreneurial venture
compromises of following steps in its
journey from inception to maturity.
 STAGE 1: SEED AND
DEVELOPMENT
▪ It is the very beginning of the business life cycle.

▪ It is vital at this stage to assess just how viable the

start up idea is like to be.

▪ The entrepreneur has to acquire advice as well as

seek opinions to assess the potential from as many
sources as possible.

▪ This is the soul searching phase when an

4 entrepreneur considers the feasibility.
 STAGE 2: STARTUP CANVAS
▪ It is said to be the riskiest stage of the entire
business life cycle.

▪ Mistakes made at this stage impact the enterprise

for years down the line.

▪ Adaptability is the reason, and most of the time in

this stage will be spent in modification of the
products or services based on the initial feedback of

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the first customers.
STAGE 3: GROWTH AND
ESTABLISHMENT
▪ At this stage starts to yield consistent source of income
and creating new customer on regular basis.

▪ The biggest challenge for entrepreneurs in this stage is

dividing time between a whole new range of demands
requiring keen attention.

▪ It becomes important to hire smart people with

complementary skill set at this stage.

▪ A successful entrepreneur spends a lot of time directly

6 involved in the recruitment process.

STAGE 4: EXPANSION
▪ At this stage a routine-like feel in the business set
in.

▪ The business is now finally established its presence

within the industry.

▪ Without a constant desire to expand, complacency

can set in and entrepreneur may get caught off
guard.

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Two alternatives of STAGE 4:
▪ One is being complacent and;

▪ Other involves a risk of expanding too carelessly.

▪ Analysis of resources, realistic efforts, low cost and

high potential returns and keeping an expert eye on
how expansion might impact the current quality of
service to existing customers are some key areas to
be taken under consideration under this stage.
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STAGE 5: MATURITY AND
POSSIBLE EXIT
▪ The entrepreneur here is faced with two choices:
push further expansion , or exit the business.

▪ Many entrepreneurs at this stage also look to move

on through sale.

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BUSINESS
PLANNING
Successful business is all about effective
planning.
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 STRATEGIC PLANNING
▪ Strategic plan formulate the effective management
by considering the opportunities and threats in long-
range plans.

▪ SPECIFIC, MEASURABLE, ACHIEVEABLE,

REACHABLE GOALS & FIXED TIME FRAME.

▪ Draws the clear lathet of the business venture:

vision, missions, objectives, competencies,
11 managerial abilities, technical proficiencies,
 Strategic planning is a part of
strategic management and includes
the implementation of the following
strategic processes:
▪ Environmental scanning

▪ Strategy formulation

▪ Strategy implementation and;

▪ Evaluation and control

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STRATEGY STRATEGY EVALUATION AND
FORMULATION IMPLEMENTATION CONTROL

▪ Is undertaken after ▪ Process of ▪ Is to track the

the scanning is conducting performance to
completed. programs, watch if the
▪ It aims to design estimating enterprise is moving
vision, mission, budgets, and in the right
objectives, procedures to direction.
strategies and achieve the
policies for the desired goals.
enterprise to be
created.

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 OPERATIONAL
PLANNING
▪ Defines how to operate in practice
in order to implement action and
monitoring plans.

▪ Translates strategy into the

everyday execution tactics of the
business that ultimately produce
the outcomes defined by the
strategy in the future.

▪ Conversion of strategic goals into

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 FUTURE OF
• ENTREPRENEURSHIP
Every state government should develop it own innovative industrial
strategies.
• States should have their own state sponsored venture funds.
• Society’s support of entrepreneurship should also continue
• A major factor in the development of this societal approval is the
media.
• Large companies should show an interest in their special form of
entrepreneurship-intrapreneurship in the future.
15 • Government and private institutions should undertake measures to
 SUPPLY OF ENTREPRENEURSHIP
AND ECONOMIC DEVELOPMENT

▪ Smith and Ricardo suggest that they undervalued

the importance of entrepreneurship.

▪ Mill appreciated and stressed upon the significance

of entrepreneurship for economic growth.

▪ Mill claims in his writings that entrepreneurship

requires ‘no ordinary skill’.

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 COMMON MISTAKES MADE BY
ENTREPRENEURS
KEEPING UP WITH MARKET
▪ Business conditions change continually, so
market research should be continuous
process.
▪ Business decisions tend to be made on the
basis if out-of-date information, which can
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lead to business failure.
 INFORMATION SOURCES
▪ Published information can provide useful insights unto
market conditions and trends.

PLANNING AHEAD
▪ Market conditions continually change, making it vital to
revisit and update the business plans regularly.
CASH FLOW AND FINANCIAL
MANAGEMENT
▪ Good cash flow control is important for any business.

▪ Cash constraints can be the biggest factor limiting growth

and overtrading can be fatal.
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 PROBLEM SOLVING
▪ Everyday brings new challenges that need to be resolved
on urgent basis and hence, the management spends most
of the time troubleshooting.

THE RIGHT SYSTEMS

▪ Responsibilities and tasks can be delegated as the business
grows, but without solid management information systems
these cannot be managed effectively.

SKILLS AND ATTITUDE

▪ An entrepreneur should refrain from valuing own abilities
too highly.

19 ▪ Learning to listen to and take advice is one of the hardest

 WELCOMING CHANGE
▪ Complacency can become a major threat to a growing
business.

▪ Regularly revising and updating the business plan can

RISKS THAT ENTREPRENEURS

help remind of the changing market conditions and the

TAKE need to response to these.

GIVING UP ANOTHER CAREER
▪ Being an entrepreneur is a life time job.

FINANCING
▪ The entrepreneur has to start from a scratch be
starting from scratch.
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 TEAM BUILDING
▪ Picking the right team for a start up is always stressful and
difficult.

BEING THE VISIONARY

▪ As the founder of the start up business, the entrepreneur,
along with his team is expected to come up with the ideas.

DEALING WITH THE UNKNOWN

▪ That unknown factor means the job stability will take a
nose-dive and many of the long term plans will remain in
flux as new developments emerge.

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 LONELINESS
▪ Business owners are not prepared for it until it happens.

RULE MAKING
▪ The entrepreneur has to come up with the rules the
business follows.

DECISION MAKING
▪ Decision fatigue is a real phenomenon and most new
entrepreneurs will experience it f they are not prepared for
the new level of stress.
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 CHALLENGES BEFORE
ENTREPRENEUR
▪ There are not many countries to have rules and guidelines to
extend protection to employees.

▪ Global competition is increasing everyday.

▪ There is always a lack of balance between projects undertaken and

people hired to execute these.

▪ There are issues like delayed payments by different parties to

entrepreneurs.

▪ Due to validity of the market and unpredictability of performance

of new product or services, the returns are also unpredictable.

23▪ Finance is the base of all business activities.

 PRESENTED
BY:
TINOSA, STEPHANIE
UY, PRINCESS
VIBAL, YANI

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