Potential Problems of an Entrepreneur [ April 1, 2012 ]

When we scope in on potential problems of entrepreneurship, we notice that the main seven problems that they deal with is Political instability which in most cases does not encourage an investor to invest in the economy even if he has invested, he might decide to fold up due to the prevailing hostile economic climate. Presence of inflation: Inflation is an economic condition characterized by a general and continuous rise in the price level coupled with a fall in the value of money. Hence inflation is economically harmful to suppliers because of unstable quoted market prices. Inadequacy of information dealing with the collation and analysis of relatively dependable, reliable and authentic data that may facilitate and enhance forecasting and planning. It is pertinent to point out that the entrepreneur may not be conscious of the existing forces of law of demand and supply that directly or indirectly affects consumers’ behavior. Capital: Capital is relatively inadequate to finance entrepreneurial business transactions in Nigeria. The initial capital for the take-off of the business may not be adequate or it may be non-existent. Due to lack of funds acquisition of entrepreneurial is not yardstick or prerequisite for establishing a small-scale business. Inadequate of infrastructural facilities which may hamper or hinder the development of entrepreneurial activities. Inadequate of Government support or motivation which deals with aiding in embarking on small-scale business by providing free consultancy services and making available soft loans. Type of business to establish: At the onset may pose and Herculean task for new entrepreneurs because of lack of experience in small-scale business transaction and management. The ultimate objective of every individual whether educated or not is to be his/her own