1.8 Challenges of an entrepreneur

What are the challenges of an Entrepreneur?

An entrepreneur face many challenges in setting up a business, as can be found below:

• Deciding on a business idea - this is quite difficult to do if one have no idea where to begin. To help, those interested in starting a business can look at their hobbies as a guide. For example, if you love baking, then you can consider starting a home bakery.
• Determining a location - where to place your business is key. If it is very near to potential customers then it may likely be expensive. But if it is too far, then it may be a cheaper rental but can you reach your customers?
• Lack of capital - not having enough money is another challenge. Banks may be unwilling to loan money to businesses who have no track record - so what do you do?
• Competition - how do you compete with businesses that have long existed before yours have begun? 
• Building a customer base - this is a challenge because gaining new customers is also a challenge. Therefore to maintain them and to grow new ones will take time. 

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