Thursday, February 13, 2020
The Challenges for Business Start-ups Essay Example | Topics and Well Written Essays - 2500 words
The Challenges for Business Start-ups - Essay Example The essay includes discussion and analysis on different aspects of the topic such as financial resources, entrepreneurÃ¢â¬â¢s time, competition from existing firms, human resource management, establishment of customer base and intellectual property rights. Alone in United Kingdom, there are more than 4.8 million small businesses which employ less than five people. Furthermore, out of these 4.8 million businesses, 3.8 million are sole proprietors. According to a conservative estimate, almost 0.5 million people start their own business every year. Over 60 percent of the total workforce or almost 22.8 million people of the United Kingdom work with small and medium sized business. Surprisingly, 60 percent of the commercial innovations also come from these small businesses. However, there is another side of the picture, which tells that more than 80 percent of these small businesses fail within the first year of their operations. Therefore, the point here is that these new businesses of ten face a great deal of challenges during their initial days. As the old saying goes that Ã¢â¬Å"People don't plan to fail, they fail to planÃ¢â¬ . Only those businesses survive, which have the planning, resources, determination, and focus to cope up with those challenges. This paper is also an attempt to present a brief overview of these challenges in light of various examples and theories. In conclusion, the researcher states that business startups without proper planning are similar to a ship, which is moving in circles without any direction.