Key Challenges of Entrepreneurship
Entrepreneurship is an essential quality that is possessed by a person, by virtue of which they are able to establish a business of their own. Entrepreneurship in a person includes various qualities such as leadership, confidence, innovation as well as designing and establishing a business successfully. This assignment highlights the various qualities that are expected from an entrepreneur. Moreover, the challenges that are faced by the entrepreneur re also highlighted in this assignment. The identification of the entrepreneur opportunities and the key processes that are necessary for achieving success in the new venture is also shed light on in this assignment.
The path between the thought of becoming an entrepreneur and actually becoming a successful entrepreneur has a lot of hard work, determination as well as level of perseverance. Becoming a successful entrepreneur is not easy. The potential entrepreneur faces various challenges and issues, while the person tries to establish a business of her own. The key challenges and issues are:
- The innovative idea: It is essential that the entrepreneur comes up with innovative ideas, while she plans to establish a business. Without adequate innovation, becoming a successful entrepreneur is difficult (Drucker 2014). The idea that the potential business man comes up with has to be one of its kinds and appropriate for the current market scenario. If the society or the present market is not ready for the innovation, then the innovative idea might not be successful (Ayatse 2013). Thus, a major challenge for the potential entrepreneur is to get innovative and acceptable ideas, for setting up the business on.
- Cash flow management: the flow of adequate cash is a major concern for the potential entrepreneurs. It is essential to ensure that the business being set up will be well-funded by various investors (Kirzner 2015). However, for a budding entrepreneur, it is difficult to get suitable investors. Most of the investors are reluctant as they fear that the business might not be a success. Hence, it is essential for the entrepreneurs to plan and have an effective budget, in which the new business could be established (Schaper et al. 2014). Moreover, alternative sources of money have to be made, in case the investors back out a crucial phase.
- Setting up the business: Setting up a business might seem to be an easy task in theory. However, in reality, it comprises of numerous components. Hence, setting up the business physically is itself a major challenge (Ayatse 2013). Thus, the entrepreneurs have to be efficient in planning. Each detailed process has to be planned by the entrepreneur, in order to set up the business successfully.
- Hiring of employees: Once the initial business is set up, it is essential that employees are hired. The selection of the personnel is also a major issue. The job specifications have to be designed first (Schaper et al. 2014). Based on these specifications, the people are hired. It is important that the right people with the right skills are selected to serve the company (Kirzner 2015). However, for potential entrepreneurs, hiring the people with the required skills is also a major challenge. This is because, the selected candidates might not be ready to work, in a limited amount of remuneration (Baum et al. 2014). Moreover, since the business is being set up, they might not have the confidence to work with the potential entrepreneur, fearing that their career path might be unstable, as the business of the entrepreneur.
- Time management: This is a great virtue. Managing time effectively ensures that the person has the required qualities of becoming a successful entrepreneur. While setting up a business, it is essential that the entrepreneur manage time effectively. A new entrepreneur has to be efficient enough to manage all the processes efficiently (Drucker 2014). While setting up a business the entrepreneur has to ensure that all the intricate details are given adequate importance by the entrepreneur. However, it is difficult for the entrepreneur to effectively manage time, since she is still at the learning phase. Thus, managing time effectively is a major challenge.
- Task division: As the business is set up, it is not possible for the entrepreneur alone to manage all the work (Ayatse 2013). She needs to appoint the employees as well, for division of task. However, initially trusting the newly recruited employees with crucial responsibilities becomes a major challenge for the entrepreneur (Peris and Sahut 2015). The newly recruited employees might not be efficient enough to work efficiently. Thus, task division is a major challenge at the initial days of setting up the business.
- Market feasibility: While the business is set up, it is essential that the market feasibility is analysed. The product that the entrepreneur is targeting to sell has to be feasible in the present market situation (Baum et al. 2014). If the target audience do not have the financial capability for buying the products or if the product is not appropriate in the present market condition, then the market feasibility is not achieved. Moreover, the major issue arises if the product targeted to be sold is not feasible in the market. Thus, it is essential for the entrepreneur to have an in depth market analysis before the business is launched.
- Lack of confidence: Confidence is a key quality for a budding entrepreneur. However, lack of confidence is not desirable for an entrepreneur (Finkle et al. 2013). Several failures and rejection of ideas might result in the lack of confidence among the new entrepreneurs, thus decelerating the progress of the launch of the new business. Moreover, the lack of confidence in the entrepreneur causes the investors lack confidence on the entrepreneur, thus refusing to invest. Hence, lack of confidence is a major issue that results in the lack of effective business being set up.
- Lack of adequate funds: The major challenge that most of the new entrepreneurs face is the lack of adequate funding in the business (Ayatse 2013). Most of the investors lack confidence in the new entrepreneur and hence the lack of adequate fund often aborts the dream of becoming an entrepreneur.
- Abandoning a stable career: Most of the people who have become a successful entrepreneur had started the journey with a stable career (Finkle et al. 2013). However, they had abandoned the stable career mid-way and choose to start a business of their own. Thus, this is a major challenge for the entrepreneur to abandon their career and move to become an entrepreneur. The fear and chances of failure are high.
- Decision making: An entrepreneur is the sole decision maker for his business. Hence, the entrepreneur has to be efficient enough to take effective decisions such that the enhancement of the business could be ensured (Peris and Sahut 2015). Moreover, the lack of effective decision might prove to be detrimental for the business. The decision-making has to be done in a strategic manner, such that along with the enhancement of the business, the welfare of the employees could also be given importance.
- Marketing challenges: Once the business is set up, the marketing of the products have to be done effectively. Since the product is a new one, hence effective marketing of the products has to be done. Social media along with distribution of leaflets and use of television could be used as initial tools of marketing (Ayatse 2013). Thus, effective marketing is a major challenge for entrepreneurs.
- Lack of social acceptance: Selling of products that are not socially acceptable has to be avoided by the entrepreneur. Lack of social acceptance of the products that are being sold will result in failure of the business that the entrepreneur wishes to set up.
These are the key challenges that are faced by the new entrepreneurs.
Entrepreneurial opportunities refer to the situation where the entrepreneurs could avail various opportunities such that they are able to make profit in the business venture that they have taken up (Peris and Sahut 2015). Entrepreneurial opportunities could be obtained using innovations or by exploiting the weakness of the other potential competitors. Moreover, exploiting the market imperfections and setting up a business based on that could be effective in providing entrepreneurial opportunities.
The basic concept of entrepreneurship is to design and set a business instead of working in a company or a business organization (Ayatse 2013). It is essential that a person, aspiring to become an entrepreneur should have the interest as well as the vision to set up a company. Passion for hard work and diligent working is essential for the budding entrepreneur.
Thus, it might be concluded that becoming an entrepreneur is not an easy task. It requires passion as well as confidence in oneself. Moreover, hard work and innovation are also key qualities that needs to be possessed by an entrepreneur. The various challenges that are faced by a new entrepreneur has been highlighted along with the various entrepreneurial opportunities that a budding entrepreneur might avail. Thus, overcoming various challenges, an aspirant will become a successful entrepreneur.
The innovation challenge that has been taken up for this assignment is the fully automated start up restaurant business. This is an innovative idea, since there is a key difference between the conventional restaurants and this restaurant. This start up restaurant is fully automatic and is run by human robots. The restaurant has only a technical manager as a human employee, who ensures that the robots and the automated machines are functioning properly. This is a first of its kind and uses various modern technology of robotics and information technology. This is a major innovation challenge and the entrepreneur has to be innovative enough, along with sound technical knowledge. This assignment highlights in details the idea of an automated restaurant along the challenges and the issues faced by the entrepreneur to materialise the innovative idea. Moreover, the consumer analysis along with the market analysis has been also mentioned in this assignment. The internal capabilities such as the funds needed, the expertise needed as well as talent needed among the employees have been shed light upon in this assignment.
Justification of Entrepreneurial Opportunities
The idea of a fully automated restaurant is innovative and one of its kind. As the customers enter the restaurant, a cordial robot, thus giving an unexpected experience to the customers, welcomes them. As the customers proceed inside, they are assigned a particular table, based on the availability as well as the number of customers. Each table has a computerised point of service (POS), where the detailed menu is displayed. The customers have to simply select the items that they wish to order, along with the quantity. On placing the order, the payment option is displayed. As long as the payment is not done, the placed order is not confirmed. The payment could be made in cash or in card (Elsby, Hobijn and ?ahin 2015). Once the full payment is made, a token is generated, confirming the placed order along with the amount of money paid and the time needed to deliver the food to the customers. Moreover, the customers could also mention customization to the delicacies ordered as they place the order. Finally, after the stipulated time, the food items would be delivered to the respective customers by robots. Another innovation that is included in this restaurant is that the chef is also a bot. These ideas are an innovative one and are likely to attract huge number of customers, who would like to experience the uniqueness of this restaurant.
Though this idea is an innovative one, yet there might be various challenges in implementing the ideas. The major challenges are as follows:
- Lack of financial feasibility: Installation of robots and fully automated technology are the basic requirements for setting up a fully automated robot enabled restaurant. In order to install all these, a lot of funding is essential. Since intricate use of technology is expensive, hence a huge amount of budget has to be allocated for the installation and maintenance of the robots (Elsby, Hobijn and ?ahin 2015). However, for a start up business and a budding entrepreneur, funding is a major issue. Thus, even though the idea is innovative, yet lack of financial feasibility is a major challenge. Moreover, the amount of investment for setting up the business might be much more, than the profit achieved, thus resulting in loss in the business.
- Lack of technical feasibility: The idea of the fully automated restaurant might be an innovative one, however, the adequate technical feasibility has to be used in order to materialise the innovative idea. The entrepreneur might not have the technical team with sound technical knowledge, such that they are able to support the technical requirements. Moreover, the selected panel of expertise might have the sound theoretical knowledge, but fail to implement the technical complexities in realty. Thus, the lack of technical feasibility might hinder the success of the start-up restaurant.
- Technical failure: Even if the team of technical expertise achieves the technical feasibility, there might be failure in operations (Elsby, Hobijn and ?ahin 2015). Since the restaurant is a fully automated one, and based purely on technology, hence technical failures will result in the complete stop of the operations of the restaurant. If there is failure among the robots or the automated POS, then the operations of the restaurant will cease.
- Lack of technical knowledge among the customers: Another major issue that might take a serious turn is the lack of tech savvy people as the customers. Since the restaurant is completely automated, hence the customers have to be aware of the technicalities as well (Dougherty 2017). Lack of technical knowledge of the customers, might result in reduction of the number of customers, as they are unable to operate the machineries and the automated POS effectively.
- Lack of variety in the menu: Since the chefs are the robots, hence there might be lack of innovation and variety in the food that is served. This is because, the robots are fed with limited recipes that are mentioned in the menu. Beyond that, it is not possible for the bots to cook and present (Elsby, Hobijn and ?ahin 2015). Hence, this restaurant might lack variety as compared to the other contemporary restaurants. This major limitation is faced by this restaurant.
- Lack of human interaction: Human interactions have a key significance in any business organization. In context of a restaurant, human interactions have a major influence on the customers (Spieth et al. 2014). Thus, lack of human beings and human interactions might not present a pleasant and cordial dining experience. Hence, this might be a major challenge for the start-up restaurant.
- Lack of interactive software: The softwares used have to be a substitute for the human begins. This is because, the robots and the softwares work as a substitute for human beings, hence the interface has to be effective and efficient enough (Elsby, Hobijn and ?ahin 2015). However, if such interactive software are not used and if the lack of human interventions are realised every moment, then it is impossible for the business to flourish. The interactive software is one of the most basic requirements for this business, since the quality of the experience given to the customers depend a lot on these interactive software.
- Lack of well-developed artificial intelligence: Robots and robotics is based on artificial intelligence. The better the artificial intelligence used, the better will be the substitute of human beings. However, if the artificial intelligence used is not efficient enough, then the operations of the restaurant will be disrupted.
The analysis of the consumers is essential in order to understand the feasibility of the business. Since the restaurant is a fully automated one, hence the prices of the items sold at the restaurants are high. However, since the innovation is high, it will attract more customers towards the hotel (Elsby, Hobijn and ?ahin 2015). Moreover, the social and the financial conditions are high enough to be pay for the higher prices of the products. The look and feel of the restaurant, along with the ambience of the restaurant is unique. Hence, the customers are likely to pay more amount for the food products. The targeted customers are mostly the people living in the urban region. The consumption habits and the food habits of the targeted customers are analysed and the menu have been designed accordingly. Moreover, the technical compatibility of the customers need to be determined as well. This is because the restaurant is fully automated and hence the technical compatibility of the customers have to be determined as well.
Concept of Entrepreneurship
Market analysis has a key role to play in establishment of a business. The entrepreneur has to take up an in-depth analysis of the market such that the feasibility of the business could be highlighted. The market analysis highlights the competitors who have been the leaders in the contemporary market. However, in case of this business, there is not much competitor in the vicinity (Elsby, Hobijn and ?ahin 2015). However, the other restaurants in the vicinity might introduce special offers for attracting more customers. This might increase the competition among the competitors. Moreover, the quality of food could be compared with the prices of the start-up restaurant. Thus, the start-up restaurant has to ensure that they maintain a competitive price to be in competition with the other restaurants. Since the business is a start-up, hence penetration-pricing strategy has to be used by the entrepreneur.
The internal capabilities include the expertise that are required for effective operation of the restaurant. The expertise include the technical experts who will install the robots and induce machine learning to them, such that the bots are able to function effectively (Elsby, Hobijn and ?ahin 2015). Moreover along with the technical experts, a store manager has to be appointed who will ensure the easy flow of the raw materials from the suppliers to the stores (Dwyer et al. 2016). The store manage also need to ensure that the basic amenities and facilities are provided to the customers. Thus, an entrepreneur has a lot of duties and roles to play in order to ensure that the business is set up effectively. The technical manager has to be efficient and well-versed in the technical skills of robotics and artificial intelligence, in order to enhance the operations of the business.
The commercial viability of any business determines the unique selling point as well as the viability of the fully automated start-up restaurant. The commercial viability highlights the features of the business that makes it profitable commercially. The unique selling point of the business is the fully automated features and the use of robots for the operational purposes makes the restaurant unique. Moreover, the budget located for this project is $50,000. All the equipments have to be accommodated within this allocated budget thus making it commercially viable. Though the value of the idea of the start-up business is high, however, a low budget is allocated to start the business. If the commercial viabilities are met, then the business is good to be materialised.
Innovative Idea of Fully Automated Restaurant
Entrepreneurship is an essential quality that has to be possessed by a person, who wishes to establish a business organization. The innovative idea that is presented by the entrepreneur is the start-up restaurant business that is fully automated. The various challenges that are faced by the business has been also highlighted in this assignment. The challenges include the lack of financial feasibility, lack of technical feasibility, lack of human interactions, lack of interactive software, lack of variety in the menu, as well as the lack of technical knowledge among the customers. It is essential to overcome these challenges, such that the start-up business could be established successfully. The entrepreneur does the customer analysis as well as the market analysis in order to test the feasibility of the start-up business. Thus, diligent work, along with interest and passion for being an entrepreneur are essential to become a successful entrepreneur.
As I begin to reflect on this journey, I must admit that it had been an excellent learning experience. The challenge for this assignment had been to take up and innovation project which in my case has been an automated startup restaurant business. The aspect of innovation in this project challenge was facilitated by including a restaurant run by human robots, with only a technical manager as a human employee overlooking the functionality and efficiency of the human robots as they run the entire restaurant. In order to conceptualize this innovation project successfully I had to adapt myself with entrepreneurial knowledge along with sound technical expertise. Along with that I had to equip myself with enough knowledge and understanding about consumer analysis and target market analysis for metalizing this excellent innovative idea.
Coming to the idolizing part, the blueprint of the restaurant was decided to be operated by a cordial robot which will give the customers an unexpected experience while it welcomes them into the creative ambiance of the restaurant. Along with that, each table was conceptualized to have a computerized point of service or POS, which in itself has been a revolutionary innovation. The system will facilitate a precise system that will display to the customers the orders day place and the orders will only be available to the customers once they make the payment. Furthermore another innovation that we chose to incorporate in our one of a class restaurant was including automated ChefBots. It has to be mentioned that these innovative ideas were the fuel that drove us to surpass on the challenges and hurdles that we faced in conceptualizing this innovative concept.
Issues and Challenges
While reflecting on my experience, I must also incorporate the issues and challenges that were the friction in the smooth road for this amazing experience. Now challenges are a part of any startup business, as entrepreneurship cannot be attained without struggle and hard work. And such a groundbreaking innovation that the world has never seen will undoubtedly be embellished with hurdles. One of the major challenges that we encountered was the financial feasibility, the financial load of installation of auto bots and fully automated high end technology was too farfetched for a start up. It has to be mentioned that this project included usage of intricate technology, and incorporation of intricate technology in such a large scale will require a budget close to an astronomical figure, which a entrepreneurship cannot afford on its own. But this innovative idea and the market analysis for this ground breaking technological masterpiece was worth taking monumental risks. Hence the entrepreneur needs to take the plunge and arrange money through loans and investments from interested groups and with such a brilliant idea, a number of investment groups interested in the concept in no time and will invest enough faith and money to keep this project afloat.
Another challenge for this innovation project can be the lack of Technical feasibility and the chances of Technical failure. It has to be understood that no one has ever tried something of is magnitude and taking this magnanimous risk as a startup idea can lead to eventual breakdown of the industry as well. Arranging an efficient technical team adept with enough technical knowledge and innovative conception to materialize as such a concept can be a difficult task and there are risks that the failure of the technical team will eventually to a public failure of the entire startup idea as well. However in my opinion and entrepreneurs must not be dragged down by these challenges and should incorporate as much technical knowledge as he could gather for this project. Starting a business is not going to be an easy pursuit and a business project that has such scope will definitely have even bigger challenges, and an entrepreneur must have enough strength and dedication to overcome these challenges.
Another challenge that metalizing such an innovative concept in a startup business will always experience is the risk of not getting significant reception from the customers. I would like to add that without analyzing the reception a response from the target customer base before metalizing an innovative conception as a startup will lead to a magnanimous failure. And as this project was already associated with the huge risk, analyzing the consumer base and the market in which they started is going to performance is a mandatory task. In this analysis we found a few factors that could lead to this project not getting the reception it is aiming for from the customer base. The first contributing factor that we discovered was the lack of technical knowledge in the customers, if the customers could not operate the automated systems, this idea will not be successful. The lack of variety in the menu that is going to be a necessary evil in the first few phases with autobot chefs, and the lack of human interaction with is an essential element in our civilization can also be a contributing factor that could be a major entrance for success of the startup idea.
With so many disappointing facts, we had to perform significant market and consumer base analysis before starting out with this project. The market analysis of this project indicated that this is going to be an unforgettable experience for the customers and the element of surprise can work in our favor. And along with that we must also consider that competition will be nil for this idea as there are no such restaurants with these technologies which will attract the customers. In case of consumer analysis I must mention that the hike in rates will be a hesitation for the standard customer base, however opening up in a posh area and few introductory deals and offers can easily overcome these challenges and allow the world to experience something never seen before.
On a concluding note, I would like to mention that this project has been undoubtedly associated with many challenges and risks, however it has also been very dear. And I have had an incredible experience figuring the odds with this project and finding ways to beat the odds. Overall this assignment has given me ample opportunity to conceptualize every aspect of entrepreneurship in intricate detail which has contributed to professional development exponentially
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