What hinders the development of industrial entrepreneurship? The answer is quite simple

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

What hinders the development of industrial entrepreneurship? This is a question that businesses often ask themselves.

In a nutshell, these factors include the high cost of rent, the economic crisis, various fluctuations in the foreign exchange market, low labor productivity, as well as emerging problems in logistics.

Let's try to elaborate on each of the listed factors in this article.

Types of business activities

Examples of manufacturing businesses involve making specific goods or performing work.

Also, services can be provided in this area, some spiritual and intellectual values can be created. Depending on the chosen industry, the following types of entrepreneurship in this area are distinguished: industrial, agriculturaland construction.

Business organization

Did you decide to open a production and commercial business? Great idea! However, it is necessary to take into account some nuances.

In itself, production implies the release of some finished product, which can take two forms: a product or a service. Also, this product can either be a finished product or serve as a raw material. For example, the resulting milk is both a finished product sold to the end customer and a raw material supplied to the dairy for the production of various products.

What hinders the development of manufacturing entrepreneurship at the initial stage?

Production is always challenging from the start.

So, at the very beginning, you need to purchase equipment, which can be quite expensive. Sometimes its cost reaches 3 million rubles. The next limiting factor is the imperfection of the legislative framework. So, a lot of types of production activities require the presence of any certificates or licenses. And this is due to standing in queues, processing an infinite number of pieces of paper and the presence of additional expenses.

It should be noted that production for small businesses accounts for about a third of all global entrepreneurship. This area also includes the production of food products, the provision of personal services.

Development stage

This stage is known to many small businesses as the growth stage. This period comes after"decorative" and is already associated with the company gaining momentum.

Now the businessman is already facing other barriers.

So, the first barrier is considered to be the difficulties with subordinates. Some types of manufacturing business require a large staff, which must be managed by a good administrator. Since in this case we are talking about small enterprises, experienced and highly qualified workers were taken apart by larger companies. And production for small businesses is content with young professionals.

The second barrier is competition. Often, the field of activity that produces certain goods is already occupied. Therefore, you need to make a lot of efforts to take a "place in the sun."

Maturity stage and challenges

This period is characterized by a certain slowdown, when a business entity has already reached certain heights, occupied its own niche in the business sector. At this stage, profit no longer makes rapid leaps up, the company develops evenly and progressively.

It is often during this period that managers fail to determine in time what hinders the development of productive entrepreneurship, and this leads to the fact that they make the same mistake.

In this case we are talking about the weakening of attention. Many at this stage of development think that they should not worry. Howeverwithout appropriate development, the company may face bankruptcy. Since any company must constantly develop, it is necessary to please its customers with some new and more favorable conditions, it is necessary to adapt to the external environment.

Wilting Stage

This stage may come if little time is given to development in the previous period. However, there is an opinion that his “arrival” is inevitable, so you need to survive it properly.

At this stage, there is a rapid decline in profits, and there is a need to fight for a new “place in the sun.”

As already mentioned, such negative trends are associated with untimely response to the shortcomings of the previous stage. Businessmen themselves do not notice the decline in time, and the situation often gets worse. Therefore, throughout the operation of a business entity, it is necessary to carefully monitor, collect information about competitors and maintain feedback with customers.

Another mistake that leads to the onset of the withering stage is the entrepreneur's fear of any difficulties: not to resist them, but simply to run away from them.

Conclusion

Thus, determining what hinders the development of industrial entrepreneurship, it is necessary to note the following. The main problem in the suspension of the development of the enterprise is still in the owner of the company. His laziness, fear of difficulties, self-doubt and desire to transfer all responsibility to unsuccessful developmentventures on others may hold back potential.