WHICH ARE THE MAIN OBSTACLES FOR CREATING A BUSINESS?

In the previous post (Which are the business success factors?), the entrepreneurs taught us which were the key factors for the survival of our company in the market. In addition, we pointed out the importance of knowing these factors, in order to empower them.

Today we are going to learn which obstacles the entrepreneurs have to face when creating their own business. In this case, the purpose is quite different: we have to know them to find the best possible solution for each particular situation. According to the report of the Observatory of the entrepreneurial climate, 2012, the main problems faced by an entrepreneur are:

CONCEPT	ENTREPRENEURS	SMEs
Lack of funding	30	35
Tax burdens	28	23
Uncertainty	17	20
Financing costs	4	3
Administrative Complexities	3	6
Lack of information and / or advice	1	2
All the above	14	8
Others	3	3
TOTAL	100	100

Source: Report of the Observatory of the entrepreneurial climate. Iniciador Foundation, http://iniciador.com/

 

 

Source: Report of the Observatory of the entrepreneurial climate. Iniciador Foundation, http://iniciador.com/

In these data we can see that the main problem, for both entrepreneurs and SMEs, is the lack of funding. Moreover, the concern about the cost of financing when the funding is achieved must be also noticed.

So, how can an entrepreneur get funds? The statistics collected show that the main source of funding is the financial aid that can be got from family and friends (55% for the self-employed and 48% in the case of SMEs[1]) the ICO Plan  (9%) appears in the third position -for the entrepreneurs- and even lower (the fourth position with a 6%) in the case of SMEs. It is important to note that SMEs access to private finance through banks more easily than the self-employed - 18% and 8% respectively.

In the project ENTANGLE, we believe that presenting the new funding mechanisms to the entrepreneur can alleviate part of the problem because our purpose is to help entrepreneurship.

Miguel Delgado CETEI- Joan XXIII Foundation.

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[1] Source: Report of the Observatory of the entrepreneurial climate. Iniciador Foundation, http://iniciador.com/