Entrepreneurship Coursework Example

MAJOR PROBLEMS UNDERLYING ENTREPRENEURSHIP
Name
Institution

Major Problems Underlying EntrepreneurshipEstablishment of a new business is a very delicate process and requires much care and expertise on the handling of shortcomings that comes along the process. Among other difficulties, management and financial decision making are the most limiting factors, which entrepreneurs encounter in the process of conceiving and inducting a new business idea. A good entrepreneur must have excellent managerial skills because he would be expected to give precise and accurate directive for all the business processes. He is also the one who heads the consenting of any new idea to be introduced in the business which is a susceptible process to exposing the company to failure risks (Fraser, Ormiston & Fraser, 2010). A good entrepreneur must be able to have excellent financial decision making so that the company will be able to operate at an optimum level while incurring least cost of production. Hence an entrepreneur must have some skills in interpretation of financial statements ergo he will make informed business decisions.
These two factors if not given ample attention they deserve, they can quickly lead to untimely collapsing of the company. This will be a significant loss of time and capital to the entrepreneur who invested his entire time and finances into business. To avoid this phenomenon, the managers have to attract and establish well-skilled management staffs that have high levels of integrity (Fraser, Ormiston & Fraser, 2010).

He should also make an effort to acquire proficiency financial statements so that he will be able to interpret the information they contain thus he will be in a position to strictly follow the progress of the company. A good records keeping system should be instilled to ensure that benchmarking on the performance of the business can be done with ease and also be able to provide future tips on how to tackle similar constraints that venture has been into in the past.
References
Fraser, L. M., Ormiston, A., & Fraser, L. M. (2010). Understanding financial statements. Pearson.