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Entrepreneurship is a hot trend nowadays. Aside from being employed in a government or a public institution, most individuals prefer to engage in small-scale entrepreneurship.
Entrepreneurship is a private enterprise where individuals find liberty in controlling their business-mindedness in a much smaller scale. There are a multitude of individuals who made it out and became successful in the field, but majority of small-scale business entrepreneurs fail. What caused such failure?
Causes of failure
An article about the root causes of entrepreneurial failure, points out the lack of knowledge and capital to sustain the scheme, as the common causes. But taking these two causal factors aside, it is imperative to arrive to a conclusion that successful entrepreneurship can be boiled down to possessing the necessary skills or aptitude and most significantly, the passion for the business and in making it happen.
Knowledge and Passion
First let us discuss a little about the lack of knowledge and passion. This is the most primordial thing to consider before starting out as a small scale entrepreneur. Passion and knowledge go together because a person must be well-informed about something he or she finds interesting. An individual would never start a fashion business without having the passion for clothing lines. A food blogger wouldn’t continue to write about interesting recipes if he’s not fond of cooking or at least going on food trips. It’s all about what a person is interested in and about the passion. Passion will definitely spark something beautiful if used. You can never go wrong if you do, and engage in, something you love. But of course, in the world of business, merely loving your product may not be sufficient.
Secondly, sustaining a capital in a given business enterprise is just as stressful. Sustaining a capital for the venture to keep operating is as crucial as starting the venture itself. But it’s not unattainable. Careful planning and budgeting is essential to meet the growing demand of the business. A portion of the amount you earn from the business will be subjected to cutting off for expenditure purposes. If the cash that comes in is below the expenditure costs, then the venture would probably end up in the verge of collapse. However, there are loans and credits you may have to consider. However, also take into consideration the profitability of your venture in the coming months and years.
Quality VS profitability
Don’t consider money as a sole motivation. We know that business is all about gaining profit, attracting customers and the like. As shocking as it may sound, starting entrepreneurs shouldn’t put too much focus on this. Don’t get me wrong. Ensuring profitability is critical (in fact, vital) for a small- scale business, but the quality of the products or services should go with it. A clothing line business would never succeed if it sells low quality products. Quality is something that customers seek in a product. Quality product is a lifeline for small business owners and entrepreneurs.
Knowing the basic scheme and Starting out.
Assessing the most fitting business is critical in the world of entrepreneurship. Recognizing competition and remaining competitive is just as challenging. Small business owners start out by reviewing their basic knowledge about a particular business of interest. The review also recommends them to identify key resources that they will need in starting out in their field of interest.