ENTREPRENEURIALISM

What Struggles Are Entrepreneurs Facing Today?

WRITTEN BY JACK BARRON | JULY 15, 2020 | 4 MIN

We are living in turbulent times, and with the onset and reality of Brexit fast approaching, entrepreneurs and business people are facing very real struggles when they enter new markets.

Startups are unpredictable, and few new businesses actually make it past their first year of trading, let alone into their second or third. By the fourth year of trading, it’s highly unlikely that a startup business will have survived.

Many entrepreneurs are facing problems on the political and financial front, so in this article, we took a more detailed look at the struggles facing entrepreneurs in 2019.

Brexit

The biggest challenge to entrepreneurialism has, of course, proven to be Brexit. While the UK’s split from the European Union was supposed to encourage business and trading, and free up finances to help generate new business, so far it’s proven to have achieved the opposite.

The problem lies primarily in the uncertainty created by Brexit, and that applies regardless of which side of the camp you’re sitting in, whether you’re Pro Brexit or a Remainer. The uncertainty has minimised spending, while the uncertain laws and arrangements that will exist once we actually leave the EU have forced many entrepreneurs to simply wait and hold back on their business ideas.

Until we have fully left the European Union, and the uncertainty has been cleared up, entrepreneurs will continue to struggle to establish new businesses in the UK. For many entrepreneurs, Brexit has also put the knife into their plans for good, and many will look elsewhere to start their new ventures if they don’t feel welcome in the UK, or if they feel their business won’t survive in a post-Brexit United Kingdom.

Financial Pressure

The biggest worry for entrepreneurs today though is financial pressure, and this is exacerbated by political events and market forces across the country. Few new businesses make it past their first year. In fact, the Accountancy Age states that only 4 per cent of all small businesses that started in 2011 made it into their second year of trading

Those numbers are staggering, and when viewed outside the realm of statistics, they represent failed businesses and startups across the country succumbing to the pressure of an uncertain financial climate.

Entrepreneurs have to worry about where their funding is going to come from, how many sales they are making, and more as they struggle to stay afloat, let alone even turn a profit.

Personal Liability

In such an unfriendly business environment, entrepreneurs are starkly aware that it’s they who are personally liable for their startups should they fail. A company director has to take personal responsibility for their actions, as it’s their duty to promote the best interests of their company, including financially. Failure to do so could result in a director being held directly responsible for financial failings. That means if the company goes under, and becomes insolvent, they could be ordered to pay back some of the debt if it’s clear they were in the wrong.

All of this adds up to untold pressures placed upon entrepreneurs looking to start their new business in the UK.

JB
Jack Barron, Director

Jack is passionate about marketing and helping small to medium-sized businesses thrive. As Director of Invoke Media, he is responsible for overseeing the planning and implementation of every campaign, getting stuck into the execution of successful at every opportunity.

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