{"id":14739,"date":"2020-04-16T02:36:26","date_gmt":"2020-04-16T01:36:26","guid":{"rendered":"https:\/\/experts.ng\/blog\/?p=14739"},"modified":"2021-10-30T20:45:07","modified_gmt":"2021-10-30T19:45:07","slug":"top-challenges-small-business-owners","status":"publish","type":"post","link":"https:\/\/www.experts.ng\/blog\/top-challenges-small-business-owners\/","title":{"rendered":"Solved: Top 6 Challenges of Small Business Owners Today"},"content":{"rendered":"\n

The ultimate goal of every small business owner is to\u00a0grow<\/a>\u00a0their beloved business from startup stage to maturity and probably make a Unicorn out of it, worth at least a billion USD.<\/strong><\/p>\n\n\n\n

But like in many other things, the business environment has its many challenges too, ranging from Startup capital to others like cash flow challenges, having the right strategy, marketing plan, and other things as the right staff.<\/strong><\/p>\n\n\n\n

<\/span>Estimated reading time: <\/span>8<\/span> minutes<\/span><\/p>\n\n\n\n

This article takes a critical look at the top 6 common challenges of small business owners, SME entrepreneurs, and how best to mitigate against or solve them.<\/p>\n\n\n\n

Most entrepreneurs go into business with a lot of hope and enthusiasm; but, these, with time, are often met by challenges<\/a> that ultimately make or mar the business.<\/strong> Below is a list of the<\/strong> top 6 challenges that plague most small and medium-sized business owners<\/strong>.<\/p>\n\n\n\n

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Until you face as much challenge like this, you haven’t faced anything yet… keep moving.<\/p>\n<\/div><\/div>\n\n\n\n

  1. Startup capital<\/strong><\/li>
  2. Cash flow<\/strong><\/li>
  3. Strategy<\/strong><\/li>
  4. Recruitment and Staff Retention<\/strong><\/li>
  5. Marketing Strategy<\/strong><\/li>
  6. Inadequate Online Presence<\/strong><\/li><\/ol>\n\n\n\n

    1. Startup Capital: <\/h2>\n\n\n\n

    The challenge: <\/strong>This is by far the most significant challenge faced by almost every single small business owner out there. Fortunately, it is one that most have also solved, else we may not have lots of small businesses out there. However, to fully appreciate the sources of funds<\/a> available to you as an entrepreneur, you first must understand the fundamental types of entrepreneurship practised.<\/p>\n\n\n\n

    The Solution:<\/strong> The solutions to the funding issues faced by entrepreneurs is embedded in the understanding of entrepreneurship itself. There are fundamentally two types of entrepreneurship – The SME (Small and Medium Enterprise) and the IDE (Innovation Driven Enterprise). <\/em><\/strong><\/p>\n\n\n\n

    Innovation-driven<\/a> enterprises (usually large corporations) have access to a large cache of funding sources due to their potentials for a massive return on investments, thus making them magnets for venture capitalists and venture capital firms. <\/p>\n\n\n\n

    Small and Medium Enterprises, on the other hand, have only a handful of possible sources of funding because they typically do not show a profit for at least some months after startup, if not a few years. <\/p>\n\n\n\n

    \"Challenges<\/figure><\/div>\n\n\n\n

    For Small and Medium Business owners, their sources of funding are fundamentally limited to 3 sources, and because each of these sources needs some proof of concept for your planned venture, the amount of money available to you is limited, and most often dependent on your social capital and trust level between the source of fund and the founder(s).<\/p>\n\n\n\n

    • Angel investors<\/li>
    • Banks and other commerce centric finance houses<\/li>
    • Government<\/li><\/ul>\n\n\n\n

      It is therefore of note to say that it is always a good practice to first bootstrap as a small business owner, prove your concept, then move out to secure further funding.<\/p>\n\n\n\n

      2. Cash Flow Crunch<\/h2>\n\n\n\n
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