Are You a First-generation Entrepreneur? 3 Challenges You Have to Overcome in Entrepreneurial Drive

Being a first-generation entrepreneur is less daunting than it is predicted as entrepreneurship inherently comes with its own set of challenges
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

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  • Aug 05,2021
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  • 12 Mins Read

Are you a young, creative person and belief in being impactful? The current business world asks for business minds like you. By the early 20s, many people realize their talents and seek to utilize them for better earnings. Not opting for 9-5 jobs and starting an entrepreneurial voyage have become mainstream amid youth. Millennials want to do work smartly and forgo old mindsets of having lucrative jobs rather than starting a risky venture. 

Establishing a business is always considered formidable for new entrepreneurs. Starting a business comprises understanding the entire business process from creating products or services to client satisfaction. Even, the ongoing health crisis has posed challenges for new entrepreneurs in India. According to a report by The Hindu, NeoGrowth Credit conducted a pre-Covid 19 survey, which stated that nearly 77.6 per cent of the borrowers in the financial year 2020 were first-generation entrepreneurs, of which 14.5 per cent moved out of the informal sector to join mainstream businesses.

Being a first-generation entrepreneur is less daunting than is predicted. Entrepreneurship inherently comes with its own set of challenges; therefore, give up your nonchalant attitude and take measured steps. Once you find your niche out of the list of new entrepreneur ideas, then start preparation in advance for the obstacles that would come in the way. 

Business Continuity 

Inexperience and less or no guidance are downsides for the first-generation entrepreneurs, which are not faced by second-generation or third-generation entrepreneurs that take the reins of the business. Owing to this, managing the business, in the long run, turns into a bumpy ride. 

After establishing the business, new entrepreneurs should keep business continuity as the foremost objective of their small firm. For this, they need to create a fool-proof business plan, considering unforeseen events in the next coming years. It is recommended to plan business activities for five years ahead since the initial five years are the most crucial ones. 

Market Situation 

It's good to be passionate and focused; nevertheless, keep an eye on what is going around in the market. Study the market trends and adapt these changes into your business. If your business is not adaptive, then the chances of its survival are low in the long run. 

For better understanding, take a cue from the present epidemic that has led to a financial crisis as well. Small companies that were tracking the market could see a way through. They realized the importance of digitalization and thus, digitized their services. Secondly, they understood the market demand and henceforth, pivoted their business. Many new entrepreneurs in India did not adopt these practices, in turn, had to shut down their business during the first wave of the pandemic.

Availability of Working Capital 

Two challenges that have been discussed above can only be resolved with the help of working capital. Working capital is immensely needed throughout the business course. New entrepreneurs, therefore, need to have enough resources to meet working capital requirements at all times. Some of the conventional financial resources that can be used are angel investment, bank loans, and credit from NBFC and other financial institutions, etc. 

The first-time entrepreneurs would be encountering these problems in their journey. They should start preparing in advance to leap over these hurdles gracefully. However, they can opt for an alternate option and buy a running business. A well-established, running business comes with its merits. If you do not want to work diligently setting up your business, then visit BusinessEx. BusinessEx is a place where you can find reliable, worthy businesses for sale as well as purchase.  

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