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Role Of Entrepreneurship In the Economic Development Of A Business

Are you wondering how, in business, a small entrepreneur can take his first steps to success?

The journey of becoming an entrepreneur will be long and has obstacles at each intersection, and you need to look both ways before crossing.

Still, at the end of the road, you’ll find a reality closer to your dreams, with a job you enjoy, a more compelling pay, and a value proposition that improves the lives of your clients.

It sounds like a good idea, doesn’t it?

Read on to learn more about the following topics:

  • How to become a small entrepreneur
  • Key Characteristics of Successful Entrepreneur
  • Advantages of investing in a new business
  • Major Challenges of the Entrepreneurial Journey
  • 7 tips to achieve success.

What is a Small Entrepreneur – How to Become a Small Entrepreneur

A small entrepreneur is an agent of economic development. It is someone who creates a solution (product or service) to a problem facing society. And for its value proposition, it is remunerated financially.

This solution can be an improvement on what competing companies already offer or a radically innovative approach to demand from their target audience.

In this journey, the small entrepreneur must seek knowledge and skills to go further.

A force for the creation of new products and new production methods. That is, destroy the old to create the new. From the idea, the entrepreneur goes to action, turning his solution into a business.

To get this dream off paper requires imagination, determination, organization, leadership, and ideally technical skill in the processes essential to the product or service.

More current research indicates that contact with family, school, friends, and co-workers develops talents and personality characteristics associated with entrepreneurship.

Main characteristics of the entrepreneur:

The entrepreneur must be the one who

  • Have an analysis capability.
  • Take risks, but with common sense
  • Does not depend on third parties, but knows how to work in teams
  • Has self-confidence

Step by step tips to become an entrepreneur:

  • Seek training and knowledge in management, administration, finance, human resources and leadership (coaching may be a good idea)
  • Identify a market demand that you intend to meet
  • Create a workable business plan with special attention to competitor research
  • Enable a financial plan that projects all business costs in the short and medium-term
  • Find ways to finance the company through equity, partners, investors or credit in financial institutions.
  • Invest time (and money, according to your financial plan) in hiring the best team to run the business with you.
  • Work hard
  • Persist and advance through obstacles
  • Reassess your route routinely.

After reading the tips above, do you still think entrepreneurship is a good business?

So here are some of the benefits and hardships of getting your ideas off the ground and starting to make your dreams come true.

What are the advantages and disadvantages of being a small entrepreneur?

Advantages of Being a Small Entrepreneur:

In the survey, over 1,000 entrepreneurs were surveyed, distributed among individual microentrepreneurs, microenterprise owners and small businesses.

Benefits:

The best part for any size entrepreneur is doing what they love.

  • In this sense, there is a great deal of freedom to choose the line of work and to do what you think is the best.
  • Have autonomy
  • You are the one who will decide the work format, how many hours per day and all the features of whether your business.
  • Finally, you can provide the service or create the product as you see fit.
  • This also goes for investments and all other decisions to be made.
  • Generate jobs and income
  • Earning income for yourself is already quite satisfactory.
  • Making attempts, making mistakes and getting it right is still an advantage.
  • After all, a small entrepreneur needs to find out what works and what does not work in the industry.
  • For those who have their own business, every mistake can be leveraged to get closer to success.

What Are the Small Entrepreneur’s Main Challenges?

Key Challenges of the Small Entrepreneur

  • Competition

In the entrepreneurship universe, competitiveness is quite high. Just as you need to know your competitors, they are also eager to know you. And there’s no doubt that they will always try to beat you to stay on the market.

To deal with this situation, it is important to benchmark and map all companies operating in the same area and competing for their audience.

  • External dependency

If you need raw materials to make a product or offer a service, you should have a credible network of suppliers.

And many times, it will depend on the capacity and quality of these people and companies.

Thus, giving up absolute control of the production process is one of the difficulties that small entrepreneurs face.

  • Networking

Creating an effective professional network is not an easy task for those starting from scratch. You need to gain credibility and authority in the field for other entrepreneurs to respect. And often this initial jump takes time.

One of the shortcuts is investing in your personal marketing and marketing your business through blogging and social networking. With brand recognition, you tend to be more accepted in professional circles.

In addition to reinforcing your reputation with marketing, it’s important to attend events, follow other entrepreneurs on the networks, attend lectures and courses, and take initiative in contacts.

  • Project Finance Control:

If you have little intimacy with numbers, controlling finances can be one of the most difficult steps to take in the business process.  Don’t just make the monthly list of income and expenses. A complete financial plan must be prepared, preferably with a full-year forecast.

To help, many entrepreneurship institutions, such offer financial control tools, and guides. It is important to seek this support.

  • Marketing:

Taking care of the company’s visual identity and a set of mechanisms for retaining and generating new customers is one of the biggest challenges for small entrepreneurs.

After all, creating a product or service is not enough. We need to find the consumers. Thus, the marketing plan must be created with rigor and long-term focus to find out what are the best ways to market your company and its solution to the market.

For that, you can’t look back: even in a local, regionally focused business, the focus should be on digital channels.

In this area, it is good not only to rely on social networks. Also, invest in blog and email marketing to engage your audience more and maintain more direct communication with them. In addition to advertising and content, keep in mind the factors such as service and commitment are critical to customer feedback.

  • Employees

Dealing with teams requires talent and preparation. Not everyone is born with the ability to lead. On the other hand, today there are many ways to acquire this skill. So if your business requires hiring and managing people, seek knowledge and skills.

One tip at this time is to invest in a coaching course or mentoring that will help you communicate better, put yourself in another’s shoes, and lead people toward business growth.

  • Sales

If you understand a lot of what you do, you will surely find it easy to offer a great product or service. But to sell it, it takes more than that.

It is essential to know deeply the market you want to enter, to know your customers (age group, purchasing power, tastes, and preferences) and to know the best ways to approach them.

It is worth investing in hiring qualified and experienced people. Remember: Selling is the engine of business.

7 Tips To Achieve Success As A Small Entrepreneur

One of the biggest challenges for the small entrepreneur is maintaining the health of the company after the first year of activity.

Even with good planning, it is essential to use various strategies for business sustainability.

1. Plan ahead

Strategic planning is the first step towards success. It is therefore important to think and rethink every detail before taking the initial step. As a first step, create a very detailed business plan, paying particular attention to your competitive edge and competition in the area. This will be one of the cornerstones of your business, so take the time to properly structure it.

2. Get organized:

The organization must be a basic premise of work. From the date you pay your bills to where you work, everything needs to be well laid out. So you waste less time trimming edges later and get better conditions to do your job: think strategically and enable business growth.

It is not uncommon to find a small entrepreneur who fails to take important action for sheer lack of time. To avoid this obstacle, invest in process management. Review each step until the product or service is sold.

3. Invest in Your Team:

Your company is actually the sum of talent you hire to run it. So if you have a team, however small, it is important to pay special attention to it. Maintaining a motivated team undoubtedly generates greater productivity and commitment.

And to achieve that goal, you can take a variety of measures, such as offering a benefits package (some financial premium for productivity, for example) or even investing in constant feedback, showing you the chances of professional growth.

The most important – and the most difficult – is to combine the reality of the company with the particularities of the team.

4. Never Stop Studying and Updating About Your Market:

Small Entrepreneurs must update themselves about the current market. To think that you have learned so much is an illusion. Never have working relationships changed as quickly as now.

And the tendency is for the dynamics to change even more – and faster. Therefore, a constant update is necessary to be able to use the new tools that are emerging and also to understand the new consumer behaviors. Advances in technology have done wonders, but those who stop in time risk closing their doors.

5. Seek Innovation

Undertaking is also synonymous with innovating. Often this maxim involves detachment. As much as you like what you produce or offer, you may need to implement changes to the “carriage ride”.

It is common that, after opening the company, the entrepreneur realizes that his product or service was not accepted. In such cases, the key to success is to change as customer needs. You have to adapt until you get it right.

6. Seek Help from an Experienced Mentor:

For those who are starting in the business world, it is very useful to have the help of a professional with more experience.

It can be another entrepreneur or a coach who will help you direct your ideas.

In this case, it is important to clearly show what you want to do, without that fear that someone will copy your business model.

By relying on this support, you will benefit not only from the expertise in this type of product or service but also from the mindset and resilience you need to develop to follow the game to victory.

7. Set Goals and Clear Goals:

Creating an innovative solution is just the beginning of your entrepreneurial journey. Then you must start structuring the business, and you will need to set clear goals and objectives.

Example: You want to become a reference in digital marketing.

To do so, you can aim to gain growing authority in the area, sell services that will have a positive impact on your customers, and give live and online lectures and courses.

With these initial ideas, you are able to set precise goals, such as attracting 10 customers over the next six months, creating your first course by the end of the year, crowding a 100-seat auditorium in up to three years, etc.

With this initial planning, everything will be easier.

Conclusion

Small entrepreneur success

Remember the warning that the little entrepreneur’s journey would belong?

This is just the beginning: the kick-start of the quest for knowledge and skills to increase your chance of success and accelerate your growth. But this effort should not end here.

Along the way, it is worth relying on the mentoring of a coach or even taking a coaching course.

This methodology fits perfectly into the plans of those who want to reinforce skills and abilities such as leadership, persuasion, communication, motivation, and productivity.

With it, you will have a series of tools and techniques that will make it easier to achieve your goals and achieve your dreams.


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