The 8 Biggest

Challenges for New

Entrepreneurs
Entrepreneurship comes with a host of challenges.
Rewarding challenges, but harsh challenges nonetheless.

*Trying to establish a brand, adjust to

match or exceed the competition and
keep your business profitable is a
challenge no matter how many years
you’ve been in business.
1. Abandoning another career

• If you want a chance of

growing significantly,
invariably you’ll have to
quit your day job.
 2. Financing

• As a new entrepreneur,
you’ll be starting from
scratch, which means
you’ll need to start
networking like crazy
and thinking through all
your possible funding
options before landing on
one.
 3. Teambuilding

• Picking the right

team for a startup
is stressful and
difficult. It’s not
enough to find
candidates who fill
certain roles
4. Being the Visionary

• As the founder of your

startup, you’ll be expected
to come up with the ideas.
• When your team hits an
impenetrable obstacle,
your job will be to come up
with an alternative plan to
move forward.
 5. Dealing with the unknown

• Unknown factor
means your job
stability is going to
plummet, and many
of your long-term
plans will remain in
flux as new
developments
emerge.
 6. Loneliness

•  Being an
entrepreneur is
lonely. It’s a singular
position, so you
won’t have
teammates to rely
on.
 7. Rule-making

• It’s fun to be the boss

until you have to
enforce something.
Sooner or later, you’ll
have to come up with
the rules your business
follows.
 8. Decision-making

• Decision fatigue is
a real phenomenon, and
most new entrepreneurs
will experience it if they
aren’t prepared for the
new level of stress.
TYPES OF BUSINESS OWNERSHIP
 TYPES OF BUSINESS OWNERSHIP

• SOLE
PROPRIETORSHIP
• Owned by one person,
who performs most
roles and owns
everything , owner gets
all profits, takes all the
losses → called
unlimited liability
• 2. PARTNERSHIPS

• Two or more individuals share

costs and responsibilities.
• Terms of partnership recorded
in partnership agreement
• 3. CORPORATION
• Business with a legal status
• Can be as small as one person, or
multinational
• Some owned by individuals, families, small
groups
.
• 3. CORPORATION
• Business with a legal status
• Can be as small as one person, or multinational
• Some owned by individuals, families, small groups .
• 4. COOPERATIVES
• Business owned by
workers/those who use
it.
• Members of it have a
common goal.
• 4. COOPERATIVES