IGCSE, A Level Business Student Forum

Q2. Explain one barrier faced by entrepreneurs, apart from limited finance. [3]

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Possible Structure:
[KN]
[AN]
[AN+]

[KN] Entrepreneur will have to face high competition.
[AN] They will have to survive in the competitive market as they can easily be forced out by their rivals.
[AN+] Business will have to come up with effective strategy and plan.

KN: Another barrier faced by entrepreneurs would be high competition in the dynamic business environment
AN: Because of constant legal, technolgical and economy chnages the business has to keep it's objecives and plans updated
AN+: This causes a lot of time and resource wastages due to which the business starts having a negative cashflow and isn't giving much attention to stakeholder aims which will give a higher competitive edge to the competitors of that one entrepreneur as now the other business will be offering better opportunities to the stakeholder groups of that entrepreneurs business.

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[KN] a newly created business will often experience competition from the established businesses due to their greater knowledge and market share
[AN] this would lead to entrepreneur producing a high-quality product with a USP but selling it at a lower price in order to attract customers and step-in the market
[AN+] it might increase the sales but it would increase the cost of production which would lower the profits

[KN] Entrepreneurs face barriers of lack of business opportunities. [AN] In order to be successful entrepreneurs may have to be innovative, as offering exactly the same goods and services as exiting businesses might not lead to great success. [AN+] The difficulty of coming up with an original idea may limit the creativity of the entrepreneur and it may also make it difficult for the business to compete in the market if it can not distinguish itself from other businesses. Therefore, the chances of business failure in the market may rise.

Kn:difficulty in recruiting hardworking staff
An: for a new business its a hard task to attract the right candidates with the right talent
An+ without proper staff its not possible for a business to start production hence increases workload and reduced productivity

Kn: Business may not be able to find well experienced and skilled workers.
An: In order to make them more skilled and trained the business may need to offer them training so that they mai be able and capable to work efficiently.
An+: But this will increase the costs of the business also there may be a risk in competitive markets to fail.

(Kn) Marketing
(An) an entrepreneur will find it hard to develop a brand image of a business through marketing from the ground up. It will be tedious and require a lot of time and energy which can present itself as a challenge for entrepreneurs.
(An+) Hence developing a brand image is hard for entrepreneurs although it carries the long term effects of ensuring loyal customers because of this image ensuring steady sales.

(kn) Inadequate Market Experience.
(An) New entrepreneurs doesn't have idea how to plan goals and objectives and how to effectively carryout them practically
(An+) this would create flaws and errors and slow decision making would create a risk of failure of business in the market.

[KN] entrepreneurs may face high competition in the business
[AN] the business may face less profit so could be failed by the rival
[AN+]decrease in profit will lead to decrease in investment in the business which will further lead to decrease in sales

[KN]: One major barrier is the high level of competition faced by entrepreneurs.
[AN]: This may require them to spend large amounts on advertising and promotion of the business' products and services.
[AN+]: This would increase the average cost and lead to low profit margins.

[KN]Entrepreneurs may face many barriers, one of them being a messed up work-life balance.
[AN]They need to put in extra hours and a substantial amount of attention.
[AN+]This could be a significant challenge in balancing work-life and personal life.

kn: lack of experience.
an: inexperience and lack of necessary skills such as marketing, accounting, and management, might disrupt an entrepreneur's ability to manage multiple aspects of a company effectively.
an+: this might lead to ineffective decisions, resulting in business failure

[KN] for a newly created business the entrepreneurs might face the problem of creating a good brand image
[An] they will have to be extra careful regarding the quality of the product or service they provide as a single mistake in the starting
could set them back a lot
[An+] in early stages the brand image of the company is fragile so it is very crucial in the starting to gain the consumer trust