A PAPER ON
THE ANALYSIS OF ENTREPRENEURS; THE ISSUES, CHALLENGES FACED AND THE WAY FORWARD.
CARRIED OUT BY
THE DEPARTMENT OF ELECTRICAL AND INFORMATION ENGINEERING STUDENTS. (GROUP 10)
Course: EIE 513 (Cyberpreneurship)
STUDENTS IN GROUP 10
S/N NAME MATRIC NO COURSE
1 Akinyanmi Oluwaferanmi14ck016831 Elect
2 Ezeh Onyekachukwu14ck016856 Elect
3 Okpon Ememobong14ck016876 Elect
4 Kugber Robert 14ck016859 Elect
5 Ekhomalomen Inegbenose14ck016851 Elect
6 Osaze-Jesuorobo Amenze14ck016890 Elect
7 Likinyo Tolulope14ck016860 Elect
8 Otegbayo David 14ck016892 Elect
9 Olojede Damilola 14ck016881 Elect
10 Omondiagbe Osemudiamen14ck016979 Ice
Success is attractive, it’s only natural that people want to be successful themselves and also want to surround themselves with successful people or at the very least learn the steps these successful people have taken on their way to the top. A successful businessman is fantastic but a successful entrepreneur is a whole different scenario all together because the rigors and risks involved in entrepreneurship means that most times the odds are stacked against an entrepreneur’s success. In this paper we’ll be taking a look at some successful entrepreneurs and their journeys, where they’ve been and the way forward in order to learn the lessons and understand the secrets behind successful entrepreneurship.
TABLE OF CONTENTS
TOC o “1-3” h z u 1.1INTRODUCTION PAGEREF _Toc526617567 h 41.1.1 Who is an Entrepreneur? PAGEREF _Toc526617568 h 41.1.1 Methodology PAGEREF _Toc526617569 h 42.1ANALYSIS OF MARK ZUCKERBERG (FACEBOOK) PAGEREF _Toc526617570 h 62.1.1BRIEF HISTORY OF MARK ZUCKERBERG PAGEREF _Toc526617571 h 62.1.2CHALLENGES FACED AND HIS WAY FORWARD PAGEREF _Toc526617572 h 73.1ANALYSIS OF WARREN BUFFET (BERKSHIRE HATHWAY) PAGEREF _Toc526617573 h 103.1.1BRIEF HISTORY PAGEREF _Toc526617574 h 103.1.2 CHALLENGES FACED AND THE WAY FORWARD PAGEREF _Toc526617575 h 104.1ANALYSIS OF MARK ESSIEN (HOTELS.NG) PAGEREF _Toc526617576 h 124.1.1CHALLENGES FACED BY HOTELS.NG AND MARK ESSIEN PAGEREF _Toc526617577 h 124.1.2PROFFERED SOLUTIONS TO CHALLENGES FACED BY HOTELS.NG PAGEREF _Toc526617578 h 125.1ANALYSIS OF ANDREW CARNEGIE (STEEL INDUSTRY) PAGEREF _Toc526617579 h 145.1.1BRIEF HISTORY PAGEREF _Toc526617580 h 145.1.2CHALLENGES ENCOUNTERED PAGEREF _Toc526617581 h 145.1.3SOLUTIONS, WAY FORWARD, LESSONS. PAGEREF _Toc526617582 h 156.1ANALYSIS OF JEFF BEZOS (AMAZON) PAGEREF _Toc526617583 h 166.1.1CHALLENGES FACED PAGEREF _Toc526617584 h 166.1.2WAY FORWARD PAGEREF _Toc526617585 h 167.1CONCLUSION PAGEREF _Toc526617586 h 17
INTRODUCTIONEntrepreneurship from a school of thought is viewed as a process, a process that incorporates stages; the design stage to the launch stage and then the running of the new business stage initially a small startup. People involved in starting up these businesses can be called Entrepreneurs. Their challenges from smallness-to-greatness has brought about this study.
Challenges faced by entrepreneurs have varied over the years due to changes in business models, number of people interested in businesses, field speculations and technology.
The aim of this research is to investigate: the challenges and issues facing entrepreneurs and the possibilities and way forward from these challenges.
Who is an Entrepreneur?The word entrepreneur is gotten from the old French word “Entreprendre” which means to undertake. According to the Miriam-Webster dictionary an entrepreneur is one who organizes, manages, and assumes the risks of a business or enterprise. From this definition we can see that an entrepreneur is not just a business minded person but also a manager, some who can take full control of the activities happening around him/her. An entrepreneur is also someone who takes calculated risks to eceive comprehensive rewards. It’s often said that “No pain, no gain” and an entrepreneur is the embodiment of that statement. Basically, an Entrepreneur is an individual with a business or venture and innovative or ground-breaking ideas with the aim of making profit whilst creating value.
MethodologyThis research was carried out by making use of readily available case studies, survey designs and documents available for public.
2.1 ANALYSIS OF MARK ZUCKERBERG (FACEBOOK)He is the founder and CEO of Facebook. According to Forbes he has a net worth of $63.5 billion dollars as of July 30, 2018. He was born on May 14, 1984 and grew up in the suburbs of New York, Dobbs Ferry.
BRIEF HISTORY OF MARK ZUCKERBERGMark Zuckerberg started out like any other child in the information age, he started out with a fascination for computers. By the time he was 12 he had learned Atari BASIC programming from his father and used it to create a messenger he called “Zucknet”. It made all the computers connected to each other and allowed to transfer messages between his home and his father’s dental office.
By the time Mark got to high school he wrote an artificially intelligent media player Synapse for MP3-playlists that carefully studied the preferences of a user and was able to generate playlists and guess which tracks a user wanted to listen to (More like Spotify). Microsoft and AOL got an unusual interest in Synapse media player and wanted to acquire it, but young Mark refused all advances to buy and then politely refused all of their invitations to cooperate.
In 2002 Mark got into Harvard University. And by his second year in Harvard University, he had garnered a reputation as a software developer on campus. It was then that Mark developed CourseMatch, which helped students choose their subjects on the basis of lists of courses from other users.
In 2003 during the summer Mark Zuckerberg suffered from a bout of Insomnia in his Harvard Dormitory room, it was there he got an idea to create a site called FaceMash, Marj decided to hack the database of Harvard University where the students uploaded their profile pictures and use it as the database for FaceMash. He then quickly wrote a program that randomly selected two pictures of two random female students and put them next to each other asking “Who is hotter?”, giving the option for voting. The process gathered a lot of attention and was visited by most students at Harvard, when the number of visitors exceeded the limit the server crashed due to overload. After this escapade Mark was sanctioned for hacking the University website.
Based on his acclaim on campus, Zuckerberg partnered with friends to create a social networking site that allowed Harvard students to connect with each other. The site officially went live in June 2004 under the name “The Facebook”. Zuckerberg ran it out of his dorm room. After his Sophomore year, Zuckerberg dropped out of college to pursue what was then called “Facebook” full time. The website reached 1 million users by the end of the year 2004.
This explosion growth attracted the attention of many Venture Capitalist (VC) firms and Zuckerberg eventually moved out to Silicon Valley. In 2005 Facebook received its first round of investments from a VC frim Accel Partners, which invested $12.7 million in a site open to only Ivy League students. By the end of 2005 Facebook opened up to students attending other schools and users shot up to 5.5 million users. Since then Facebook has progressed in leaps and bounds. On July 25, 2018, Facebook released Q2 earnings. The company reported that daily active users averaged 1.47 billion for June 2018 an increase of 11% year-over-year. As of July 30, 2018, the company has a market cap of $483 billion. With Zuckerberg holding 60% of voting rights in the company.
CHALLENGES FACED AND HIS WAY FORWARDDealing with Criticism, being called a “Toddler CEO”
Talking about CEOs our minds jump to the names of Steve Jobs or Bill Gates. They co-founded their companies at the age of 20. Both were unusual. It was until late that he got real respect and recognition from the world. Even in the beginning phase when Mark Zuckerberg was a college student, he faced lot of criticism for getting the blame of having stolen the idea of Harvardconnectins.com and building a competing product. The Twins from Mark’s senior year claimed that Mark sabotaged their project and betrayed them. Mark Zuckerberg confronted yet another challenge when Ben Mezrich wrote his far-famed book, ‘The Accidental Billionaires’, was launched in 2009. Mezrich became intensely infamous for his book telling Zuckerberg’s story, obviously with some acumen and garnish on the true one. ‘A writer’s mind is pretty imaginative, you see.’
Funding and Investment
Challenge A: How to transform Facebook into a Must-Own stock.
Challenge B: Finding lead investors for Facebook was a challenge.
One of the biggest problem Mark Zuckerberg faced was how to attract investors and bring money to the company. The problem of funding is one such issue which Mark Zuckerberg overcame by running a few advertisements on its website initially. In 2004 when there wasn’t any outside funding available, Mark put his own money into his business. It was a challenge for Mark Zuckerberg to find potential lead investors and it was required that Facebook must reach 1.5 million users by the end of 2004 in order to get the first angel Investment which they narrowly missed but the loan was still allowed to them. When in 2005 the Accel Partners agreed to make venture capital investment deal with Facebook, they expanded its board to five seats out of which two were still empty and it was on Mark Zuckerberg to nominate anybody for the seats. At the time Microsoft invested in Facebook in 2007, it bought the ‘preferred stock’ and had the ‘liquidation preferences’ over the common stockholders; it was a risk to Facebook if any day Facebook gets sold. It was until later that Zuckerberg filed for an IPO that raised $16 billion making Facebook the third largest in the U.S history, but it also required Facebook to add bold revenue streams to justify such big valuation.
Mark Zuckerberg needed Critical Mass of Users to be Successful
How to create hype among users.
Mark wanted to overcome people’s tendency to be lazy.
Critical mass means getting enough adopters or long-term users of any innovation in the social system in such a manner that the rate of adoption becomes self-sustaining and it leads to further growth. Before the launch of Facebook on the big platform, Mark Zuckerberg knew his start-up would have to face this obstacle which can be resolved only by achieving critical mass. If good ideas would just market themselves then the energy could be solely devoted to making cool things, said Zuckerberg, but this is something which needed to be garnered by efficiency and hard work, to survive, which Mark did. Due to critical mass, Facebook will never have to charge people for the access to basic tools.
Decision Making was the toughest part for Mark Zuckerberg
What will be the consequences of turning down acquisition offers from every big company?
Whom to hire for the most important post of the company, i.e. The COO ; CFO.
As the business starts to grow it becomes more and more critical to make decisions on every level. Each decision opens way for numerous other decisions. It is always necessary to ask the right question in the face of any problem. A former employee said that Initially the company, Mark Zuckerberg approached every problem by asking “Does it help us grow?” The genuine value of business planning and basic leadership is to distinguish the difficulties and pitfalls and plan around them before they happen, instead of getting caught unaware by them when the business is already set in motion.
Choosing What to Sell and To Whom
How to protect Facebook from the rumors of its sale.
Announcing the verdict of Facebook being an independent company.
Developing organizations confront a scope of difficulties. As a business develops, distinctive issues and opportunities demand diverse solutions because what worked a year back might not be the best approach now. Like every entrepreneur Mark Zuckerberg was also having problem in deciding what to sell and whom to sell during his early days of Facebook. As he was one only one of his kind. The sales negotiation of Zuckerberg’s company was a major challenge when MySpace was sold to NewsCorp in 2005. At first there were rumors of the possible sale of Facebook to a larger media company wherein Mark had already stated that he didn’t want to sell the company. Later in 2006, there were serious talks between Yahoo and Facebook for the acquisition of Facebook. It was in 2007 that Zuckerberg totally took the chance and shut the doors in the face of buyers by saying that he wasn’t looking to sell Facebook and he wants it to remain independent, at the time when the company’s worth was around 8 billion dollars.
Mark had to prevent the Invasion of Privacy
How to confide in 500 million users.
What strategy to implement for 100% protection of information.
Lawsuits against Facebook
The Facebook project launch was accompanied by series of scandals. Six days later after launching the site, senior students’ brothers Cameron and Tyler Winklevoss and Divya Narendra accused Mark Zuckerberg of stealing their idea. They claimed that in 2003 hired Zuckerberg to make him complete the establishment of the social network HarvardConnection.com. According to their testimonies, Zuckerberg did not provide them the results of his work but used the original source code to create Facebook. In the same year, Narendra and the Winklevoss twins launched their own network renamed to ConnectU. And they continued to attack on Mark Zuckerberg, complaining Harvard administration and The Harvard Crimson newspaper. The Winklevoss twins and Narendra filed a lawsuit against Mark Zuckerberg, but the court rejected their claim. They were persistent and filed another lawsuit. This time, the court examined the code sources to understand whether they were actually stolen. But the truth was still not clear. The examination results were not announced. In 2009, Zuckerberg agreed to pay $45 million ($20 million in cash, and the remaining amount in Facebook shares) ConnectU as part of the court settlement. The case was closed. By that time ConnectU had less than 100,000 users, Facebook boasted about 150 million users.
The Winklevoss twins yet did not calm down and filed a petition in the U.S. Court of Appeals, but they were denied a retrial. According to their lawyer Jerome Falk, the appeal court refused to take a review of the case based only on the parties’ settlement agreement, which states that members of the trial after the signing of the document does not have the right to resume the trial. In counsel’s view, the decision was illegal, as Mark Zuckerberg in a proceeding in 2008 provided false information about the company’s value.
On May 17, 2011, Cameron and Tyler Winklevoss filed another lawsuit against the owner of Facebook Mark Zuckerberg to the U.S. Supreme Court. That was the latest attempt by the brothers to make the court reconsider the case.
3.1 ANALYSIS OF WARREN BUFFET (BERKSHIRE HATHWAY)Warren Edward Buffett is a very successful entrepreneur majoring in investments. He was born on August 30th, 1930. He bought his first shares at age 11. He is presently the CEO of Berkshire Hathaway, an England Textile company.
BRIEF HISTORY He became an integral part of Berkshire Hathaway at age 30 and has since then helped the company expand to one of the largest conglomerates in the world. In 1962, he bought control of the company and used it as a holding company to invest in other businesses. The first insurance company he bought was National Indemnity Company and he got this business opportunity from understanding that clients pay huge amounts to insurance companies to receive payments decades later. (Vanessa Page on Investopedia 2018)
Berkshire Hathaway currently owns more than sixty companies and has a net worth of $90.1 Billion (Forbes.com May, 2018).Like every other entrepreneur, Buffett has encountered some challenges while running his business that most often led to a form of loss.
3.1.2 CHALLENGES FACED AND THE WAY FORWARDCLOUDED JUDGEMENTS
Warren Buffett first invested in Berkshire Hathaway in 1962. The company was a failing textile company at that point, but he thought he would make a profit when more mills closed so he increased his stocks. Along the line, there was a dispute with the management which convinced Buffett that the company needed a change in leadership. He bought control of the company, fired the manager and also tried to keep the company running for additional twenty years just to prove his point even though he knew that the business was failing. This vindictive move cost him $200 billion dollars loss.
In 2011, David Sokol, the then-chairman of several of Berkshire’s subsidiaries pitched to Buffett Lubrizol Corp as a potential takeover. Sokol owned stocks in the chemical company and failed to tell Buffett which a violation of insider trading rules was. When Berkshire bought Lubrizol for $9 billion, $3 billion profit went to Sokol as he already had stocks there.
ISSUE: Buffett allowed himself to be persuaded by an acquaintance into buying a company that would directly result in his making money off Buffett.
The way forward here is to ensure that you never allow emotions affect your financial decisions. Also avoid being overly trusting and ask questions you think as necessary regardless of who is involved because some of the people you trust are only after their own interests.
In Berkshire’s manufacturing, service and retail operations, some of the businesses in the firm’s portfolio gave poor returns because of wrong evaluation of the economic dynamics of the company. There were times when Warren stumbled in evaluating the ability of the managers he hired, and this resulted in losses for the firm.
The way forward is to research every investment properly to know what you are venturing into. Avoid jumping into investments blindly and seek advice from a trusted expert when you’re not very familiar with a company you are about to invest in.
CASH MISMANAGEMENT AND RISK TAKING
A company is best when it has competitive advantage. When there is no reason for customers to continue patronizing a brand, it will most likely shutdown. One of the challenges that Warren Buffett faced was cash mismanagement. In 1993, he purchased Dexter Shoe Co. and funded it with shares from Berkshire rather than cash. This was a huge loss for him and a wrong move because Dexter Shoe Co was out of business due to lack of patronage.
The way forward is to always ensure that resources are properly allocated. Avoid pulling money from solid investments to fund other investments that have zero potential. Entrepreneurship is about taking risks but ensure that every risk is well calculated.
When Buffett acquired General Reinsurance Company with Berkshire Hathaway and he made a very large initial hit on the purchase. He failed to realize that the company did not have enough funds in reserve to pay for already existing losses from old policies. This cost him about $800 million losses.
The lesson from this is to ensure that calculations are made well, and that proper investigation is done before investing in any new business. Always double check the numbers and run them by trusted legal advisers. It is also important to assume a worst-case scenario that could cost you to make adequate preparations. (Laura Woods from CNBC LLC 15 December 2017)
ANALYSIS OF MARK ESSIEN (HOTELS.NG)Founded and Launched in 2013 by Mark Essien, Hotels.ng is a Nigerian online hotel booking agency. While Mark Essien was pursuing his master’s in computer science in Germany, he developed an interest in the Nigerian technology space. His analysis showed that for an emerging market like Nigeria, a travel/tourism startup would work the quickest. Studying South American and Asian models of already-established hotels booking agencies, Mark tentatively created a hotel listing website (Hotels.ng)
He purchased a domain name and a list of hotels and put them up on the website. This domain recorded enough traffic numbers to convince Mark to return to Nigeria from Germany and make his website into a business.
Today, Hotels.ng boasts of a listing of over 7,000 hotels in 320 cities in Nigeria, with over 10 million hotel searches from 2013 till date.
CHALLENGES FACED BY HOTELS.NG AND MARK ESSIENEntrepreneurs face different kinds of challenges when setting out to start, grow and maintain a business. The following are some of the challenges faced by Mark Essien when building Hotels.ng:
The first hotels listed on the hotels.ng website was not appealing enough to get people’s attention to their website. The hotels were relatively unknown and hence received little or no bookings from their directory. This did not give them enough traffic on the website.
There was the challenge of turning the website into a business. At the beginning they had to pay hotels for listings. He also wasn’t adequately prepared for when the website started getting traffic and calls for bookings, hence hundreds of calls were missed and several bookings on the site were ignored and unfulfilled.
A lot of work in the company was done manually. They engaged in door-to-door recruit processes. The back-end support was also manual, as calls and bookings made were logged on paper and filed. They also had to hire field agents to go to different towns to take photos of the several hotels listed on their website. This was rather painstaking and capital intensive.
PROFFERED SOLUTIONS TO CHALLENGES FACED BY HOTELS.NGListing top hotels or hotels that were quite popular with people would have helped boost their image and reputation at the start of the business.
Preparedness for the events that followed bookings and calls would have helped manage the operation of the company. Such as hiring people in place to take calls, coding a separate form to log bookings to, to reduce the workload of logging manually. Data is also easier and safer to store and back up, that way.
Instead of spending a lot of human capital and cost capital on taking photos of hotels and travelling to different cities, Hotels.ng could have created an avenue for first time bookers of said hotels to take photos of the hotels they have booked and lodged into, adding the incentive of a discount to encourage them. They could have used their customers to work for them.
5.1 ANALYSIS OF ANDREW CARNEGIE (STEEL INDUSTRY)This is an expose on Andrew Carnegie a Scottish American who was the founder of the Steel Industry in United States.
BRIEF HISTORYAndrew Carnegie was born into the family of William Carnegie a relatively prosperous weaver before the era of industrialization came into play. His father was a traditional weaver with looms and apprentices in the city of Dunfermline. As advancements in technology came, businesses on woven linen suffered a steady decline in income, which eventually led him to shut down and pack up with his family to New York.
Andrew at the age of 13 when this occurred, and his family didn’t have stability in income obtained, till his father died in 1955. I believe these happenings contributed to his push to go into business, because he believed he had large shoes to fill.
Andrew started work as a bobbin-boy at a cotton factory earning $1.20 a week, and then moved on to work as a messenger of a local telegraph company. He continued in this line up until he became the General Superintendent of the rail road at the young age of 24.
As Carnegie grew, in addition to his strong belief in the American Industry recognized the growing need for iron and steel. It was recorded that his success in the steel venture was due to: first his commitment to technological change, and his previous experience with rail-roads. He founded the steel industry on supplying products (iron and steel) that was very essential to the developments; building of rail-roads and locomotives that was happening at the time. Truth be told, this is what entrepreneurship is about; meeting the needs of people and adding value. It is in doing these things that profit is made.
Carnegie did a lot of things right from applying the knowledge and business experience he had accumulated from his previous jobs in the telegraph and rail-road industries in building the steel industry, as well in investments. He made the decision to partner with people more experienced with the daily operations of the job ‘steel-making’ while he managed affairs which he is skilled in doing. This was one of the secrets of his business success.
CHALLENGES ENCOUNTEREDTHE HOMESTEAD STRIKE
Carnegie was a well-liked boss; with laborers who were devoted to him, willing to work even under unfavorable conditions but all this changed when he approved the proposal to impose a wage cut proposed by company manager Henry Clay Frick. This occurred when he allowed profits to take precedence over people, which was not his best move. The manager, Frick was more consumed with power and efficiency than the concern for the worker’s well-being. As a result, resources weren’t allocated for ensuring worker’s safety and security, wages were stagnant and he workers were tired. The result of this decision was a strike imposed by the company’s union, the Homestead Strike.
The workers decided to revolt against the unfair treatment they were getting from the new management. They saw no reason why they should risk their own lives for a boss who would care less about their livelihoods and safety. The strike lasted for almost a year, between July and November. It was one of the major strikes that were recorded in that era because of the large size of the union.
During its course, there were still some workers who weren’t a part of the union that continued working, so the company assigned detectives to protect them from the union laborers. When this first started, some detectives died while some were trapped, but then it continued until the company won the strike. This success permanently weakened unionism in the industry, and a once high performing labor force shrank to just workers.
SOLUTIONS, WAY FORWARD, LESSONS.
Fig 1.1: Important factors to take note of in growing a business
In building a successful enterprise, the place of effective handling and management of labor cannot be overemphasized. An agreement on Carnegie’s part to a modest wage increase and moderately improved working conditions would have passed on a message of value and appreciation to his employees. This in turn would most definitely have kept them engaged and high performing prevented the deadly strike that ruined his reputation and in the long run only increased his profits.
Through this we can see the relationship between people, performance and profit in building an industry. Beyond laws, if you seek a people that would perform efficiently and put their heart on the job, you need to learn to appreciate and respect them.
“A valued and appreciated workforce is a more engaged workforce, a more engaged workforce is a higher performing workforce, the higher performing they are, the more innovation and revenue are likely to increase.”
6.1 ANALYSIS OF JEFF BEZOS (AMAZON)He is the founder of Amazon. Amazon is an American electronic commerce and cloud computing company based in Seattle, Washington, that was founded on July 5, 1994. It is the largest Internet retailer in the world measured by revenue and market capitalization, and it is second largest after Alibaba Group in terms of total sales. The amazon.com website started as an online bookstore and later diversified into several other areas.
CHALLENGES FACEDPOOR DECISION MAKING
Jeff Bezos made several mistakes while starting the company, and even more after the company launched. Here are just a few of them; When the company began selling toys, in addition to selling books, Jeff Bezos insisted that the business model should be changed, and the company would purchase and store millions of dollars in toys. In total, more than 100 million toys were purchased and stored in a warehouse in anticipation of the Christmas season. After the Christmas season, 50 million toys were left. The toys left were mostly given away due to lack of space. The mistake made here was not surveying the market well before purchasing that much toys making the company run at a loss.
Another mistake made was by inventing the “fire phone”. Amazon took a 170 million loss due to this invention. “As the world goes mobile, an Amazon phone would provide a more direct link to its users,” Amazon writes. But to whom is that connection truly useful? Android and iPhone users can connect to Amazon already and well enough through the devices that they already have. This fail was because of bad management discussion and lack of market survey or review from customers. A smart phone has one of the two: wonderful design or an irresistible price but the fire phone had none. Amazon from the start would have imagined the phone as a free perk for let’s say Amazon prime members then it could have slipped through a sleek shopping engine into the hands of millions of people.
Amazon also invested in several startup’s which made them run at a great loss. Some of them include; Living social- Amazon invested 175 million in Groupon competitor living social just as the daily deal fad peaked and based on that they lost nearly that much money because they didn’t study their market among others.
WAY FORWARDWhile entrepreneurship is all about taking risks and creating more opportunities, however, good decision making is important in doing so. Decisions should be taken by various members of the board and top management.
Another important way forward is the carrying out of SWOT (strengths, weaknesses, opportunities and threats) analysis in the creating of new opportunities and in expanding the business, the feasibility of the opportunities needs to be analyzed and carrying out of market surveys is a great way to do this.
CONCLUSIONFrom the above analysis we can discern that the common challenges faced by entrepreneurs are:
Judgment and Decision making
Sourcing for Capital and Investment
These challenges and how they’re handled can make or break a business. Judgment and decision making are especially important as wrong decisions can lead to large scale loss as seen in the cases of Warren Buffet and Jeff Bezos with Amazon. Capital is obviously very important for starting a business but getting people interested enough to invest in an idea is equally as important for the sustenance of the venture and the continuous growth of the business. Just getting funds is not enough though as money is a phantom and if not used properly can quickly be exhausted; good money management is a key part of entrepreneurial success. Finally, the people being recruited to assist in the venture have to be of similar mindset i.e. creative, goal oriented and dedicated to the cause; poor recruitment and management can lead to issues in the future as seen in the case of William Carnegie whose workers went on strike du e to a poor management decision.
Zuckerberg especially faced his critics head on and has gone from being a “Toddler CEO” to being one of the richest men in the world but it wasn’t exactly easy. He had to take a lot of things into account like where to get funding and how to get investors interested in his stock. He had to find ways to get the users hyped and more interested in his idea whilst at the same time assuring them that their data was 100% safe and ensuring from his end that the data was secured. He did all this while making crucial decisions on what to sell and to whom, fending of acquisition interest and recruiting key personnel for his plans to come to fruition. He was even sued multiple times but through it all he stood strong and prevailed shoeing that it might not be easy, but it can be accomplished regardless of the challenges being encountered.
The journey to success is an arduous one plagued with challenges and obstacles from all spheres of life be it mismanagement or poor decision making. Every venture is bound to face challenges but it’s how these challenges are handled that can determine the success or failure of the business venture. Going down is inevitable but staying down is a choice, getting back up and going again is also a choice and it’s the choice that the most successful people in the world have made and will never regret because when the going gets tough the tough get going.
Tolero Solutions (http://www.tolerosolutions.com/lessons-in-employee-engagement-from-andrew-carnegie/)
Investopedia, 2018 (https://www.investopedia.com/articles/personal-finance/081315/mark-zuckerberg-success-story-net-worth-education-top-quotes.asp)
Business Alligators (https://www.businessalligators.com/7-biggest-problems-mark-zuckerberg-faced-early-days/)