Barriers to entrepreneurship

Following are the different types of barriers that come across the path of entrepreneurship:

 Financial barriers: This is one of the most prominent barriers in the life of an
entrepreneur. Such barriers are quite common. Availability of funds is of great
significance. If a delay happens in gathering enough funds, then it may further delay
the commencement of an enterprise. Also, various business operations need a
persistent flow of funds.
 Personal barriers: Personal barriers are caused because of the emotional and
psychological blocks of an entrepreneur. Let us have a look at the various types of
personal barriers:
 Lack of motivation and encouragement: When an idea does not turn out to be fruitful,
these entrepreneurs give up quite easily. Even a minor failure is enough to demotivate
them.
 Lack of patience: If an entrepreneur loses interest because of any hurdle or obstacle,
then he does not have enough patience and perseverance to carry on with the
entrepreneurship. Even the initial losses are enough to discourage them and shut their
enterprises.
 Lack of confidence: These entrepreneurs never have enough confidence. They never
trust in themselves. They are somehow convinced that they will never be able to come
up with a successful business idea. They are always bothered about their inability to
attract enough funding. Hence, they almost give up on their dream of being self-
employed and thus do not carry on with entrepreneurship.
 Lack of vision: There should never be any limitation to what you can achieve. Some
entrepreneurs, after making short progress, lose their vision and show no more interest
in expanding the business.
 Machinery: Machines are extremely significant to carry out multiple operations.
However, machinery does come costly. Also, technology keeps changing quite
rapidly, and hence, machines tend to get obsolete quite often. Thus, an entrepreneur
needs to replace them. This process is quite difficult for the entire organization.
 Raw material: The situation can get quite distressful if there is no raw material
available during the peak season of the work. This further increases the price of
limited raw materials available because of an increased level of competition.
 Labour: For successful entrepreneurship, there has to be the availability of skilled
labour, quality and quantity labour, and committed and loyal employees. Lack of any
of these can lead to severe disruptions in the working procedure of the enterprise.
 Political barriers: When there are not enough government concessions, and incentives
offered, things start getting difficult for the entrepreneurs. Also, there has to be a
proper socio-economic setting to make things happen the way they need to. A
politician should also focus on making a society economically developed. Only then
will things smoothen up for the entrepreneurs.
 Characteristics of a successful entrepreneur
1. Curiosity
Successful entrepreneurs have a distinct personality trait that sets them apart from other
organizational leaders: a sense of curiosity. An entrepreneur's ability to remain curious allows
them to continuously seek new opportunities. Rather than settling for what they think they
know, entrepreneurs ask challenging questions and explore different avenues.

2. Structured Experimentation

Along with curiosity, entrepreneurs require an understanding of structured experimentation.

With each new opportunity, an entrepreneur must run tests to determine if it’s worthwhile to
pursue.

3. Adaptability

The nature of business is ever-changing. Entrepreneurship is an iterative process, and new

challenges and opportunities present themselves at every turn. It’s nearly impossible to be
prepared for every scenario, but successful business leaders must be adaptable. This is
especially true for entrepreneurs who need to evaluate situations and remain flexible to
ensure their business keeps moving forward, no matter what unexpected changes occur.

4. Decisiveness

To be successful, an entrepreneur has to make difficult decisions and stand by them. As a

leader, they’re responsible for guiding the trajectory of their business, including every aspect
from funding and strategy to resource allocation.

Being decisive doesn’t always mean being correct. If you want to be an entrepreneur, it
means having the confidence to make challenging decisions and see them through to the end.
If the outcome turns out to be less than favourable, the decision to take corrective action is
just as important.

5. Team Building

A great entrepreneur is aware of their strengths and weaknesses. Rather than letting
shortcomings hold them back, they build well-rounded teams that complement their abilities.
In many cases, it’s the entrepreneurial team, rather than an individual, that drives a venture
toward success. When starting your own business, it’s critical to surround yourself with
teammates who have complementary talents and contribute to a common goal.

6. Risk Tolerance

Entrepreneurship is often associated with risk. While it’s true that launching a venture
requires an entrepreneur to take risks, they also need to take steps to minimize it.

While many things can go wrong when launching a new venture, many things can go right.
According to Entrepreneurship Essentials, entrepreneurs who actively manage the
relationship between risk and reward position their companies to “benefit from the upside.”

7. Comfortable with Failure

In addition to managing risk and making calculated decisions, entrepreneurship requires a

certain level of comfort with failure.

It’s estimated that nearly 75 percent of new startups fail. The reasons for failure are vast and
encompass everything from a flawed business model to a lack of focus or motivation. While
many of these risks can be avoided, some are inevitable.

8. Innovation

Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship. This
notion is often true. Some of the most successful startups have taken existing products or
services and drastically improved them to meet the changing needs of the market.

9. Long-Term Focus

Finally, most people think of entrepreneurship as the process of starting a business. While the
early stages of launching a venture are critical to its success, the process doesn’t end once the
business is operational.
 Need for entrepreneurship development
1. Drives Innovation and Creativity

Innovation and creativity are essential for any economy to flourish and compete in the global
marketplace.

Giving people the tools and resources to start businesses allows economic innovation and
creativity. This can lead to new products or services that can improve consumers’ lives and
make businesses more efficient.

2. Boosts Economic Growth

Entrepreneurship is critical for economic growth. It leads to the developing of new products
and services, stimulating investment, increasing productivity, and driving competitiveness.

A study by the Global Entrepreneurship Monitor found that countries with higher rates of
entrepreneurship tend to have higher economic growth rates.

3. Creates Jobs and Improves Wages

In many cases, the entrepreneurial culture is a source of work for unemployed people, who
can generate more money by producing their ideas.

Likewise, innovative ventures require new jobs with unique skills. These are entry-level jobs
where new staff need to be trained and gain experience.

4. Improves the Quality of Life

Entrepreneurship is a source of development, be it economic, technological, or social. One of

the most significant benefits of start-ups is that they aim to improve people’s lives since they
offer new possibilities through innovative products or services.

For example, large technology companies such as Apple, Facebook, YouTube, Google, and
Microsoft were born as digital start-ups and today help simplify many tasks of daily life.

5. Promotes Knowledge and Research

The meaning of entrepreneurship is synonymous with innovation. Therefore, investment in

research on science and technology is essential for the development of ventures.

In other words, the more one knows about a subject; the more one will be able to master and
take advantage of the skills necessary to execute business ideas.
6. Increases Self-esteem and Confidence

Beyond the economic benefits of a business venture, it is essential to take into account that,
personally, it represents a better level of self-esteem for the entrepreneur and a boost of
confidence to achieve their goals.

On the other hand, it is also important to remember that personal ventures must be something
their creator is passionate about and not only see it with an economic advantage.
 Objectives of entrepreneurship development

1. To get knowledge about government plans and programs

An entrepreneurial development program provides knowledge about government plans and

programs to new investors. It gives ways to know how to use the government schemes
properly before launching a company or business.

2. To provide training to operate a business

With entrepreneurial development programs, entrepreneurs can get ideas on how to operate
their business in markets easily. Moreover, they enable an entrepreneur to overcome
challenges and establish a balance between various components of a business.

3. To encourage self-employment tendencies

The program will induce people to self-employment, so that they can become a master in
their business. Self-employment provides employment to various persons that help boost the
economy.

4. To develop managerial skills

Entrepreneurs require managerial skills when they want to launch a company. A development
program will teach them how to improve their skills efficiently.

5. To know the availability of resources

Entrepreneurs should know the availability of resources because they contribute more to
business growth in markets. Having proper knowledge about resources lets an entrepreneur
allocate them correctly for a business that helps obtain optimal results.

6. To understand the business environment and market

Before starting a company, entrepreneurs should understand the business environment and
market. This will help increase the business growth, which gives methods to reach next
levels. Also, an entrepreneur can implement the best strategies based on the market and
business environment.
7. To create awareness about marketing

Marketing is important for any company to generate high conversion rates. A development
company allows entrepreneurs to know more about marketing plans including networking
events in detail. They will help connect with customers quickly and help establish a brand or
service.

8. To promote small and medium industries

A development program is suitable for those who want to start micro small and medium
enterprises with innovative ideas. It even shows methods to promote them through various
ways that help accomplish goals with optimal results.

9. To know the uncertainties and problems of a business

Entrepreneurs should know the uncertainties and problems of a business. A development

program will help understand them with more attention.