These problems can be classified into two categories;
The internal challenges – concerned with the business and the entrepreneur.
The external challenges – concerned with elements outside the business scope.
Considering the internal challenges, they can be further broken down into;
1) Personal breakthroughs – These are problems the entrepreneur is facing himself. They constitute the social and psychological problems.
Poor relations with family and friends; Stabilizing a business would require much of the business person’s time and efforts. This would take away the moments and periods he used to enjoy with them. This can be solved by scrapping sometime spent on the business, for embracing the company of his loved ones. It is a matter of balancing time for the business and social time. This way loneliness will be avoided during work.
Fear of failure of the business – If the businesses collapses or does not generate enough returns; the owner will lose all his investments. A business person bears this risk in his mind because it is a possibility but acts as an alarm to carefully watch the business. He can cope with this fear by establishing risk management strategies that would mitigate all kinds of risks and compensate for any loss when it occurs. This way the business will always have efforts to move on with its operations despite the impact of risks it is facing.
Risk of Career Loss; some business people give up their jobs so as to pursue their own business. Nevertheless, they may end up regretting if the business performs poorly or is shut down. That is why it is advisable to ensure the business is very stable enough to move on before sacrificing the career life. One can also do business related to his own career field so as to advance in his skills.
Ignorance of Business Ethics – This means failure to practicing ethical requirements of the business because of not being aware of those requirements. This problem can lead to the business being shut down by the authorities very fast if legal procedures have not been adhered to by the business person. To avoid this problem, a business person can seek legal representation. That is, he can employ a personal lawyer to guide him through the legal procedures and assist him to ensure that the operations of the business match with the pertinent business ethics.
Lack of expertise knowledge and experience – This can lead to the business performing poorly. If a business is unfamiliar with the nature of his business operations it would mean that he is not sure of what he is doing. He will also lack confidence communicating with the customers because he may lose all his potential customers who would realize that they are dealing with alien products. The business person would then require seeking the expertise and training he needs to carry out the business; both necessary technical and management skills.
2) Management Breakthroughs – These are problems related to the how the operations of the business are controlled. Considering that the business already has the advanced technology and qualified personnel, the main problem could be mismanagement of funds. Wrong usage of business finances can lead to a big loss. In this matter the business person should seek both surface and deep information concerning the managers he would appoint. This is to ensure that they are qualified and experienced enough to handle management difficulties.