Introduction

Life is full of unique opportunities and challenges depending on where you live. In some places, it is easier to make a living or do business due to favorable economy and other conditions. At other places, even the most basic amenities needed to stay alive are just difficult to get. Glaring differences in economic conditions affect everyone - including entrepreneurs. Being an entrepreneur in some places is not as difficult as in other places.

In so-called developed countries, entrepreneurs and business owners face challenges like everyone. However, they do not experience all the basic hardships faced by their compatriots in developing economies. There are challenges that are only unique to entrepreneurs living in places that the economy is considered growing - for example Africa. These challenges make it difficult to kick off a profitable venture and run it successfully. Take a look at just 3 of them and try to see if these are obtainable in your area:

1. Inadequate or poor infrastructure: This is a big hurdle not just to entrepreneurs in developing economies. Some places in developing economies lack the basic facilities needed to support modern life. For example, poor road networks. If an entrepreneur lacks easy access to his business site, it will be difficult to move goods or raw materials around. And if customers and business partners find it difficult to access the business location, it becomes a big challenge. In some parts of Africa, there is no steady power supply. Sometimes, it takes weeks before power is distributed for few ours in a day. Entrepreneurs in places like these have to incur additional cost of running power generators. This increases cost of production and eats away any profit that comes from the business.

In the above examples of poor road network and unsteady power supply, entrepreneurs in places like these must look for alternatives to these challenges. The alternatives are usually expensive and create a need to increase the startup capital for the business. As such, poor infrastructure in developing economies hamper the success rate of entrepreneurs.

2. Limited Credit facilities: Sourcing funds for a new business is probably easier in more developed economies. There seem to be many opportunities for small businesses to secure business loans and adequately finance their business. However, in some developing economies, there are little to non-existent credit facilities. As such, entrepreneurs and small businesses in these places struggle to finance their business. Often times, the little credit facilities available are difficult to process because of tough terms associated with them. Hence, entrepreneurs in some developing economies must depend on savings, small financial support from family and well-meaning friends.

Sometimes, small businesses resort to traditional ways of raising funds such as through cooperative societies or contributions from trade associations and groups. Lack of standard credit facilities from the government still remains a bottleneck for entrepreneurs in developing economies. Until funding becomes easier to obtain, entrepreneurs in places like Africa will always struggle.

3. Harsh government policies on business: This is another challenge not too common in developed economies. Government in some developing economies make policies that discourage local business. Some of theses policies may impose heavy tax on businesses that are struggling to startup. In some worst cases, they government make laws that effectively kill indigenous business, leaving them with no option than to close up. At other times, government policies may give undue advantage to foreign rival businesses operating in an area, leaving local business with no opportunity to compete. I recently read about an African government that sold off cable TV rights exclusively to a foreign company. The local cable companies licences were withdrawn and these businesses were shut down. The foreign company was then allowed sole right to cable TV business in that country. Legislation like these can adversely affect a small startup - even putting the business out of business.

Conclusions

Entrepreneurs face very many challenges before becoming successful. Some challenges are general, but some others happen in specific areas such as in developing economies. Entrepreneurs in places like that must figure out a way to overcome local obstacles such as those described above. Whatever is the situation you find yourself in, always work harder and have a positive mindset. You can succeed regardless of prevailing circumstances in your immediate environment.

What unique challenges do entrepreneurs face in your city, state or country?

The author wrote from personal experience. He has run many businesses while living in a developing economy. Would you mind sharing with us how entrepreneurs in your area fare. Do they experience the same challenges mentioned above or are there unique ones? Have you say!!!!