9 Challenges Young Entrepreneurs Face And How To Overcome Them

Last Updated: 

May 25, 2024

Entrepreneurship is a challenging road to pave. Especially, when you see the established players in the market, you often need clarification on whether it will be possible or not to compete. 

But the very reason why you started your venture is that you know there is a gap to fill in the market. This positive light does not mean you will not face entrepreneurship challenges but it will boost your courage to fight those challenges.    

In this post, I have mentioned the top 9 entrepreneur challenges from my years of observation and experience. Have a look at them and how to overcome them.   

Key Takeaways on How Young Entrepreneurs can Overcome Challenges

  1. Starting the Venture: Overcoming the fear of taking the first step is crucial; prioritize progress over perfection and start with careful planning.
  2. Managing Cash Flow: Entrepreneurs often face financial constraints; start small, raise funds from investors after testing the idea, and maintain a cash reserve for unexpected expenses.
  3. Gaining Business Knowledge: Lack of experience can hinder success; expand knowledge through reading, seminars, and expert consultations, and hire skilled people to manage operations.
  4. Attracting Talent: Top talent is hard to secure for startups; offer remote work, flexible hours, learning, and growth opportunities, and foster a positive company culture.
  5. Time Management: Entrepreneurs typically work long hours; prioritize tasks, delegate effectively, and use time management tools to increase productivity.
  6. Effective Delegation: Young entrepreneurs may struggle with delegation; prioritize tasks that need your attention, delegate others, and track progress using project management tools.
  7. Securing Funding: Funding is a common challenge; master storytelling, explore multiple funding sources, and develop a solid business plan to attract investors.
  8. Scaling Operations: Scaling requires significant changes and planning; scale gradually, manage expenses carefully, and utilize cost-effective solutions.
  9. Open to Suggestions: Avoid becoming authoritarian; listen to others, respect their opinions, keep your ego in check, and take advice from experts.
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9 top entrepreneur challenges and ways to overcome  

You are going to face some inevitable challenges as a young entrepreneur. Thus, it is sensible to set the expectations right. Look at the list of top 9 entrepreneurial obstacles and the solutions to overcome them. 

1. Taking the first step

Taking the first step is the most challenging for young entrepreneurs. There can be multiple reasons behind that but a major one is young entrepreneurs try to master perfection before they start. They want everything right in its place: plan, situation, finance, and opportunity. 

But there is no such thing as the right time, right situation, or absolute plan. You just have to get started with careful planning.       

What to do?

  • Start taking small steps    
  • Iterate and improve       
  • Prefer progress over perfection

2. Cash crunch 

Every entrepreneur struggles with money. No entrepreneur will say I have enough cash and can spend as much as I want. You will have to deal with the cash crunch. You have to work within the limited resources.     

What to do?

  • Start with the bare minimum to commence business operations 
  • Once you have tested the business idea, raise money from investors      
  • Maintain a cash reserve to handle unexpected expenses

3. Lack of experience and business knowledge 

It is good to be excited about launching a new venture, but experienced candidates know that more than 90% of new businesses fail. This is because most new business owners need to gain the right business knowledge. You may be an expert in your art, but not in managing books, logistics, people, technology, and compliance. You may not be able to predict risks for your business from your current level of knowledge.    

What to do?

  • Read books, attend seminars, and consult with experts to expand business knowledge    
  • Hire the right people to manage operations

4. Attracting and retaining the right talent

If you have the plan ready, saved some money for the venture, and analyzed the business risks, it still does not guarantee the beginning of your entrepreneurial journey. It is because you need people to work on the things you have planned. 

And the reality of the market is that top talent does not prefer startups. Also, startups often cannot afford top talent. Thus, you need to do a little more hard yards to find, attract, and retain the right talent.

What to do?

  • Offer perks like remote work, flexible working hours, and learning opportunities to top-talent
  • Provide growth opportunities
  • Create a positive company culture to attract new talent                           

5. Time management  

According to a poll of readers of the New York Enterprise Report, 70% of respondents also worked at least one weekend on a regular basis. 

Almost all young entrepreneurs work more than 50 hours a week. 

In an interview, Elon Musk said he worked 120 hours a week during the Tesla Model 3’s production peak. 

So, working long hours is something you need to accept if you want to become an entrepreneur. You have a lot of things to do on the plate every day. You need to learn to manage your time sensibly.

What to do?   

  • Prioritize tasks and do the most important tasks first
  • Delegate tasks  
  • Use time management techniques and tools for entrepreneurs to work productively      

6. Delegation

It is natural to be controlling as an entrepreneur because you want to take responsibility for every action that happens in your organization. But it does not mean you should not delegate. Young entrepreneurs have challenges delegating tasks. They are not able to let go of control and rely on others to do the job. 

What to do?

  • Learn the art of prioritization
  • Define the tasks that require your complete involvement and tasks that you can delegate
  • Delegate tasks, track their progress easily with a PM tool like ProofHub, and save time for the most important tasks to improve productivity 

7. Securing the funding 

If you are doing great as an entrepreneur, there are a set of sweet challenges that will be waiting for you. Securing the funding from investors is one of them. Even the best of the startups face hundreds of no’s when trying to secure funding from the investors. 

What to do?

  • Master the art of storytelling and expand your business knowledge   
  • Be resilient and explore the multiple funding options  
  • Develop a solid business plan to attract investors

8. Scaling operations  

There is a difference between entrepreneurship and running a small business. Startups think of scaling and becoming an established brand. Scaling operations requires a change in operational processes, careful planning, resource management, technology, and much more. It is not easy to scale operations. 

What to do?  

  • Gradually scale the operations
  • Do not overspend and manage expenses carefully 
  • Use cost-effective solutions 

9. Keeping the mind open for suggestions 

There is a thin line between being a leader and an authoritarian. Holding the power, it is not difficult for an entrepreneur to become too egoistic. There is no one to stop you, but people will start feeling discomfort around you and fear raising their voices. This will eventually lead to poor business outcomes and lead you to make many mistakes and bad decisions.           

What to do?

  • Listen to people around you and respect their opinions   
  • Keep your ego in check mindfully       
  • Take suggestions from subject matter experts 

Final thoughts 

Entrepreneurship is an exciting and challenging journey. But at the same time, it is also true there is a risk of failure associated with it. Thus, it is sensible to be aware of entrepreneurial challenges that you are going to face so that you can be better prepared.           

Meet Sandeep Kashyap, the CEO of ProofHub who is transforming project management and team collaboration with his innovative solutions. With an unwavering passion for leading his team to success, Sandeep's mantra is simple - "keep growing, don't stop". When he's not busy at work, Sandeep loves to explore new destinations and challenge himself with trekking adventures.

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