Discussion and respond to two responses
B. Please respond to both these discussion post responses with 100 words each.
Response 1. Msanch
1) Other than raising needed capital, what are the biggest challenges to small business today? Global competition, lackluster economy, excessive government regulations or any on your list?
2) Please feel free to present any topic of your choosing relating to small business management. Respond to a classmate’s posts to advance the conversation.
As the world evolves, small business must consider how their products and services keep up with current demands. Some of the challenges that they seem to face include the ability to transition and scale to a Digital-First World. Large companies have the means and budget to scale quickly, offering flexible payment options or hiring teams dedicated to meet the demand of the digital world, whereas smaller companies must plan any upgrade or advancement according to what their budget allows them to do so.
Subsequently, Covid-19 steamrolled several small businesses and this in of itself posed a challenge for small businesses. Jason Lee, Owner, Healthy Framework stated that “COVID is making forward planning near impossible. Without knowing how long it is going to be here and to what degree, it is impossible to plan out marketing efforts, gauge staffing needs, or just know what our customers and clients need.” While digital advancement adds to the global competition, it is my believe the problems small business face are due to a lackluster economy, a direct result of the Covid-19. The most challenging part is the unknown, opening and closing to re-open, there are no viable solutions to counter economic impacts.
Reference:
Pierce, D. (2021, February 20). 10 Biggest Challenges Small Business Owners Face Right Now. Entrepreneur. https://www.entrepreneur.com/article/362771.
Response 2. Cpin
Raising financial capital can be a significant challenge for small businesses, especially new ones. This is due to the fact that creditors are likely unwilling to lend to a sole proprietor or partnership due to their limited resources (University of Maryland Global Campus, n.d.). This can be alleviated by choosing a business structure that is better suited to outside investment such as a corporation (University of Maryland Global Campus, n.d.)
Two other significant challenges for small businesses are a lack of effective leadership and proper business systems (Adams, 2017). Leadership is an absolute necessity to first have a vision for the small business and then create and execute a plan to achieve that vision. Business systems must be created to properly organize all of the work and tasks that will otherwise overwhelm employees, managers, and owners (Adams, 2017). Both leadership experience and the knowledge to create and maintain business systems can be difficult for small businesses to acquire, especially new businesses.
References:
Adams, R. L. (2017, Sep 26). 10 Reasons Why 7 Out of 10 Businesses Fail Within 10 Years. Entrepreneur. Retrieved May 23, 2021, from https://www.entrepreneur.com/article/299522
University of Maryland Global Campus. (n.d.). Unit 1: Business Structures and Sources of Funds. University of Maryland Global Campus. Retrieved May 23, 2021, from https://learn.umgc.edu/d2l/le/content/579080/viewContent/22088549/View
