Challenges of Being an Entrepreneur

Being an Entrepreneur: Assignment Eight
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Question One
Challenges companies and firms face in growing the business include cash flow and financial management, keeping up with the market, meeting customers' needs, and retaining employees. Maintaining a good relationship with clients aids the business in meeting their needs. The firm's purpose should be focused on prioritizing the needs of its clients by listening to and acting upon consumer feedback. Good employees are valuable assets to a company. Therefore, firms should work on retaining their staff. This can be achieved by appreciating their work and acknowledging their accomplishments. A company should also provide appealing benefits such as healthcare insurance and paid vacations. Business management must offer a competitive salary to retain skilled and trained employees. Most growing businesses face the challenge of protecting their intellectual property. Generally, intellectual property rights turn ideas into profit-making assets, market business products, and enhance the market value of a business.
The ability to keep up with the market is a significant challenge that companies face. Business conditions change radically. This shift affects the demand and supply of a firm's products and services. Customers are swayed away by alternative suppliers or companies that offer better deals. Besides, business growth and profit depreciate when new and better products are ushered into the market. Cash flow and financial management are the backbones of every entity's development. Good cash flow is favorable for growing businesses. However, cash constraints are one of the biggest factors that limit this development. Working capital should be controlled to maximize profit and cash flow in the organization. When addressing overdue trade debts, credit management should be controlled to deal with adequate cash flow and management.
Question Two
Liability of newness is defined as the threat to a growing business's early-stage organization life cycle. The concept lays down the framework of business mortality. The risk of organizational failure is usually high during the early stages of business establishment and growth. Therefore, the entity's founders must possess knowledge of intellectual property, bookkeeping, cash flow management, contracting, and employment law (Harijanto et al., 2021). There are several ways to overcome the liability of newness in a business. Some of them include finding business support, taking doubts seriously, learning from other entrepreneurs, and surrounding the firm with a rich ecosystem. Other factors entail bonding and partnering with the co-founders, establishing the financial and emotional cost of the business, and experiencing the mechanics of starting an enterprise.
Business growth and success depend on understanding the effort and commitment needed to start and run an enterprise. If an entity doubts a service or product, it should not establish it. The company takes business uncertainties seriously by considering a product or idea in its operational industry. Founders should look for the business support they need by venturing their prospects into an environment-supportive sector. T...