Challenges Facing Entrepreneurs Case Study

Describe three of the biggest challenges that face entrepreneurs as they are starting the process of developing a venture in Africa. Discuss how you might support them through those challenges. (A non-technical paper) By Emeka Unachukwu Introduction

Entrepreneurs could be defined as individuals who identify market needs and launch firms and ventures to meet those needs. They are different from salaried employees because entrepreneurs innovate and assume ownership risks.

Entrepreneurs like conventional businesses, they develop through a process. The process they go through which includes having a vision, and developing an idea is laden

Entrepreneurial skills and knowledge are also fundamental for a promising entrepreneurial work. Basic entrepreneurship training enhances start-up formation and sustainability. It boosts the self-confidence and self-efficacy of individuals to cope with challenges ahead. It also helps to ensure a good project proposal and secure a great pool of finance required of the entrepreneur to start a viable firm. Prospective entrepreneurs need to be able to convince investors that they have a viable proposition and the determination and tenacity to succeed. The entrepreneur should be competent enough to demonstrate an intimate knowledge of his/ her business model, as well as the working environment of his/her firm. He/she need to have the skills used to sell, bargain, lead, plan, make decisions, solve problems, organize and

Access to Finance

Financial problem has long been one of the stout challenges new entrepreneurs in Sub-Saharan Africa faced along the years. They put inadequate fund as the biggest and critical hurdle to starting a firm and compete with incumbent firms.

In regards, most entrepreneurs in the region cannot manage to get sufficient credit to start a firm. More than 59 percent of entrepreneurs fail to get credit required for starting firms compared to 31 percent in Eastern Europe and Central Asia, and 34 percent in Latin America and the Caribbean.

In Sub- Saharan Africa, lenders demand much higher levels of collateral from entrepreneurs. A large portion of entrepreneurs in the region revealed the disproportionate amount of collateral required of them. 79.3% of firms in the region indicated that lenders require collateral which actually is still higher than the global average of 77.4%. The value of collateral needed for a loan (% of the loan amount), though relatively lower than the global average, is quite high for new ventures. Lenders in Sub-Saharan Africa require 173.8% of the loan amount compared with 193.9 % of the global average. In regards, most firms in the region cannot manage to get sufficient credit to start a firm. More than 59 percent of entrepreneurs fail to get credit required for starting firms compared to 31 percent in Eastern Europe and Central Asia, and 34 percent in Latin America and the