Challenges Encountered in Starting and Developing a Business Venture

Enterprises are useful contributors to the economy building in Britain. When starting a new enterprise as an entrepreneur, several risks accompany an individual. To ensure success as an entrepreneur, it requires perseverance and a desire to achieve the purpose of the business venture. The government can support Small and medium-sized enterprises by providing financial support to entrepreneurs to run and manage them (Block, 2015, p.15). A national campaign was established in Britain by some entrepreneurs to give support to start-up enterprises in the country. The crusade was set afloat by David Cameron who was a former Prime Minister in Britain in 2011 even though it does not get any funding from the government.

Burns (2016, p.16) states that there are various barriers that entrepreneurs encounter in the process of starting and developing a new business venture. The process of establishing a new business venture is a complicated task which fundamentally necessitates a concentrated research modeling as well as planning. Lack of sufficient resources is a more significant challenge in the process of initiating a business venture. Lack of enough financial funding is an excellent challenge for businesses in the establishment of new ventures. Nevertheless, the government can ensure that they develop the fundamental processes to fund these enterprises in the form of grants (Block, 2015, p.17).

Developing the creativity and business plan; developing a business idea is usually the primary challenge encountered when beginning a business by new entrepreneurs. Identifying a business niche or envisioning a business idea is unquestionably difficult. An entrepreneur is required to have the capability to see what others don’t understand. An entrepreneur should learn to see opportunities in any challenges that arise. The principal problem is advancing to build the occasion into a business plan. Converting the opening into a business idea is a challenge since the practice of changing challenges into business opportunities is a difficult task. Creating a vision and business plan is a challenging process since it involves an entrepreneur to establish the value of a business out of nothing.  Developing the concept and the business idea is the initial challenge in starting and growing a business venture (Bromley, & Meyer, 2017, p940).

Assembling a team for the new business enterprise; when start-up enterprise entrepreneurs develop a vision and idea for the business, the next challenge is to join the suitable business management team. A brainstorming team needs to be created to hold discussions to come up with ideas and ways of overcoming challenges to grow the business. Establishing a group for the business venture takes place even before raising the inceptive capital to start a business. Nearly all brilliant business ideas not at any time scale through the stage of raising starting capital arise. A good business team will help an entrepreneur in their weaknesses. The business team will complement the entrepreneurial weaknesses (Ward, & Rhodes, 2014, p.42).

Raising capital for the new business; after start-up enterprise entrepreneurs have established a business venture and a team all they will require is capital to conduct the transaction. An enterprise can gain financial support from the government in the form of the grant. A business entrepreneur is familiar with what the business venture entails. They are the only individuals who can envision what the future of the business holds.  Obtaining grants from the government to finance a new business venture is a possible option. To guarantee that the government gives loans and grants, as a grantee one needs to ensure that they develop a good business plan. A grantee must state where the business is likely to benefit the community. A government will only be interested in a business plan that explains how well they will develop the community’s interests. The start-up enterprise entrepreneurs are required to establish a mission and vision that can achieve goals in the business venture (Bromley, & Meyer, 2017, p940).

Developing the creativity and business plan

Strategic decisions: there is a need for start-up enterprises entrepreneurs to make strategic decisions that will enable the new business venture to make profits. Start-up enterprise entrepreneurs can make decisions on developing new commodities and can as well join others in a strategic alliance in the form of joint business ventures. Lots of risks always accompany strategic decisions in new enterprises. The start-up business enterprises entrepreneurial procedures are based on recognising and assessing challenges and requirements precisely ahead of possible rivals and through the implementation of distinct and visionary methods. Start-up business entrepreneurs need to be visionary in the business industry and gain confidence in the competitive environment they intend to operate. It is essential that start-up enterprise entrepreneurs strategically examine and quickly assess the main drive a new business venture will require grappling with before it gets underway. Start-up enterprise entrepreneurs are mostly thought about to possess a commendatory temperament to risk, and it is necessary for them to plan in prior, establish and apply strategies that can help in attaining market existence, advancement and progress (Soomro, & Aziz, 2015, p16).

Financial decisions; A Start-up enterprise entrepreneur frequently encounters decisions on business finances. There is a need for entrepreneurs to make decisions during the starting and development of a new business venture to enable them to raise funds for the new enterprise. It is essential that start-up enterprises entrepreneurs develop a reliance on professional experts to get insights into the specific business venture. Financial decisions serve to determine business competitiveness (Ward, & Rhodes, 2014, p.42).

Financial strategies: a financial plan in a start-up enterprise represents the fundamental features which support the policy of the organisation in spite of those business enterprises effects, which foist a restriction on the type of financial decisions entrepreneurs, can get involved. Economic strategy constitutes a procedure to execute as well as perpetuate the competitiveness of the start-up business venture and enable the business to perform better (Salikin, Ab Wahab, & Muhammad, 2014, p.34).

Structure; Start-up enterprise entrepreneurs need to acquire a legal structure that will function in their new business venture.  The choice of the new business structure depends on the size and type of business an entrepreneur intends to operate. Individual situations and one’s vision on the plan will determine the business structure. The business structure is liable to adjustments depending on the manner in which the business venture develops. New business entrepreneurs are required to converse about their advanced structure with professional advisors before engaging in the business venture. The established business structure will determine their suggestions regarding liability, profits as well as sharing of costs when it comes to taxation income (Eniola, & Entebang, 2015, p20).

Human resources; workforce in start-up enterprises is one of the most substantial benefits of a business venture. Entrepreneurs in start-up enterprises should make decisions on enlisting and employing a worker. An entrepreneur is required to create a procedure and technique of hiring the most proficient workers. An entrepreneur is needed to make resolutions on job accounts, functions of every employer and accountabilities.  New enterprise entrepreneurs have final decisions on issues of compensating their employees (Picciotto, 2017, p.177).

Assembling a team for the new business enterprise

Operational discussions: new venture entrepreneurs are required to do reviews in a manner in which they will operate the business venture. Operation decisions entail administrative functions as well as whom the business wants to transact with during its operations. Operating decisions are resolutions made and manage the market on a daily basis. The operational decisions serve an essential purpose in controlling the profits and the cost incurred in the process of operation and requires sustainability (Mach, Carter, & Slattery, 2014, p14).

Start-up enterprises and new business ventures are good economic indicators of growth, health, and prosperity of a country. The influence of enterprises in the economy across the globe is a very critical character in the developing of a community which is free from poverty. Enterprises give the society ample job opportunities to the different levels of the population as well as guarantee that cash flows smoothly to different societal classes. The government can best support its start-up enterprise entrepreneurs by providing financial support. There are several government-sponsored procedures created to assist developing enterprises in getting finance in forms of loans or grants. The government is required to focus its efforts more on providing grants to new enterprises as they play an essential role in the growth of an economy.

Britain’s government is required to provide help to start-up enterprises in the present-day economic climate since it is a challenge for new ventures to accomplish financial goals in a way that satisfies a required result. The government should improve chances for the development of new business enterprises as well as encourage the establishment of many more businesses. The financial assistance which is best for this purpose should be in the form of grants. The principal method in which the government can support its start-up business entrepreneurs in the economy is through monetary support with the opinion that it is of the interest of the public. The government is required to intervene in several ways to safeguard its new entrepreneurs. Other than the grants, the government should subsidise more on matters that relate to emerging enterprises. The government should set policies on issuing grants to ensure that they involve utilisation in the right way (Kraja, Osmani, & Molla 2014, p44).

Job creation; Start-up enterprises play a necessary role in the production of employment opportunities. The government needs to realise that Start-up enterprises create a more significant percentage of job creation in the countries. New business ventures usually challenged as they lack the capital to invest in their investments. Job creation by new enterprises boosts economic growth. Start-up businesses develop new business ventures and innovations which expand the base for governments to collect taxes. Start-up enterprises bring with them changes and set of performing skills in the existing market (McKeever, & Pettijohn, 2014, p16).

Economy efficiency; Start-up enterprises create the sense of a competitive economy. Competition makes the different entities to focus more on delivering the best amongst peers. Competition among businesses expands productivity and performance economically.  

Minimum capital; the government should appreciate that Start-up enterprises require minimal money to start and in that manner, the government should focus more on investing finance in the Starting enterprises. The government can budget funds to and offer them in the form of grants to Start-up enterprises. Since the Start-up enterprises require minimum capital, the government can support a more significant number of enterprises in the country.

Industrialisation: Start-up enterprises play an essential function in the creation of industries which leads to the boost of a country’s economy. Industrialisation enables a state to develop in several sectors which result as a result of economic growth. When the economy grows, it means that more enterprises will develop which in turn boosts the economy to a more considerable extent (Meegan, Kennett, and Jones, & Croft, 2014, p177).

Conclusion

Start-up enterprises, as well as existing enterprises, play an essential role in Britain’s economy. The government can provide grants to Start-up enterprises in the state. Government grants funds businesses as well as innovative ideas. Loans and grants help stimulate the economy by helping their establishments. The grants require that policies are set to guarantee correct utilisation of funds. Grants for Start-up enterprises will ensure that new ventures will establish and those in existences thrive.

References:

Block, F. (2015) Innovation and the invisible hand of government: Vol. 1. Abingdon: Routledge Publishers.

Bromley, P. and Meyer, J.W. (2017) They are all organisations: Vol. 49. New Jersey: Blackwell Publishers.

Burns, P. (2016) Entrepreneurship and small business: 2^nd ed. London: Palgrave Macmillan Publishers.

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