THE CHALLENGES OF ENTREPRENEURSHIP IN DEVELOPING COUNTRIES

It is not a secret that countries according to their economic growth are divided into tree types: the ones that are not developed, the ones that are developing and the third and more advanced ones are the ones which are already developed countries. Of course it is logical that the economic condition in the developed countries is much better than in any other countries and the income from business logically should reach more. However, this cannot be said for sure just because there are different entrepreneurship policies including different taxes which can make the things too different. So when it comes to developing countries then we have to say that the developing countries are sort of middle class countries where the economy is not too bad but not so good either. So let’s say that this is the group of countries where economy seems to progress.

• There is a risk in developing countries that your product will not be in the need of the nation. Well, in developed countries you can do almost anything and that will be of good demand. However, when it comes to developing countries then you have to take into the consideration with the needs of the nation and very often the needs that they will have will not correspond to you. That is the reason why you should make sure that your products and needs of the nation match together and sometimes it is really a challenge.
• The next challenge can be the fact that it will take much more time to start getting some kind of income and that is the reason why you must make sure that you have enough financial capital so as to hold on for some period of time. Of course this is a big challenger because you will just have to have financial capital to last longer.
• Another issue to make sure here is that actually you must make sure that your workers have got the proper knowledge. The education system in the country where you will establish your business can be not so great and therefore there can be lack of professionals and if your team lacks professionals then your business will not be a quality one which will not make it very successful also. So make sure that your staff really deserves to be there and that will be just great and less problematic. Otherwise it is a really great challenge.
• Another entrepreneurship challenge in developing countries is the fact that actually some developing countries want quick money in the budget and that is a reason for high taxes. The developing countries may not be so flexible in terms of tax policy and can make it quite hard on entrepreneurs. However, this again depends on the country and you must check very well before having some kind of clear imagination about this just because there are some developing countries which indeed have quite comfortable tax policy.
• Another very important issue here is the competition. There can be a lack of competition in some fields on the market. This might see for you to be a good thing at the very first sight. Of course this can be good from one hand, but from the other hand it can become a real challenge for the entrepreneur. When there is some kind of competition in the market then you can understand better the needs and demands and you know more exactly what you should work on. However when you are all one in the market of that specific field then it is a lot more intimidation for you. Besides this the healthy competition can only make you better because it always keeps you working and becoming better and better, while when you are all alone your quality can be down because you know that people like it or not but you are the only one. The lack of competition can become a real challenge for anyone.
• Safety can also become a challenge because not all the developing countries are simply safe. Of course there are some developing countries which are really safe and which make it so easy to work but on the other hand I do believe that safety is a crucial factor for business and you must make sure that your business is in a safe country. If you did not make sure that there is safety there then it will simply become a real challenge.

These are the most common challenges that the entrepreneurs can meet in developing countries. I believe that there are a lot of developing countries where it can be convenient to have your business started. However on the other hand not all of these countries are quite good for business and you should just check up the policies because they are very different. In general we have to say that the developing countries do have a lot of challenges for business.