Bottlenecks in entrepreneurial growth India notes-CSEET
Bottlenecks in entrepreneurial growth India:
ICSI CSEET: The Council of the ICSI has released a notice regarding CSEET on the day of the inauguration of ICSI Golden Jubilee Celebrations on 4th Oct 2017.
The Gazette Notification on the Company Secretaries (Amendment) Regulations, 2020 has been published on 3rd February 2020 in the Official Gazette of India and the same shall be applicable from the said date of publication.
Now ICSI Published a notice regarding CSEET Test which going to start from 2020 May.
We are now going to discuss the details of CSEET Paper-3 Economics and Business Environment notes – Bottlenecks in entrepreneurial growth India
Bottlenecks in entrepreneurial growth India:
- Inefficient time management
Most entrepreneurs think on infinite time scales, as though they have plenty of time to achieve their goals. Time is the most valuable resource, yet most entrepreneurial leaders don’t use it effectively. It is very important to analyze the business flow metrics and identify time-wasting processes. Comparing the performance with industry standards to find out the problem areas in a major challenge . Leveraging technology tools such as automation and machine learning wherever possible is very important in contemporary times.
McKinsey & Co. reported that the next era of supply chain management will hinge on autonomous vehicles and a network of smart programs that can optimize efficiency. Organisational efficiency can be increased by implementing software solutions that break through bottlenecks and boost productivity.
- Lack of money
Inadequate funds – Less funding and the resources obtained by these funds — can hinder expansion. When it comes to resolving bottlenecks, money matters a lot. It helps in the purchase of a software programs and hire consultants who reduce the obstacles to growth and profitability. As the company expands, there is a need to scale up the technology, invest in sales enablement and direct resources to a number of other critical areas. Money is needed to achieve all of that.
Fortunately, there are a number of capital sources out there. In addition to venture capital funding, one can apply for a loan backed by the Small Business Administration. Loans repaid in less than seven years typically incur a less than 10 percent interest rate, and these loans can be used to purchase new technology or building your team with supply chain experts.
- Too much noise
Building and running a start-up can become too complex when the entrepreneur is trying to cut through the noise generated through social media, marketing, apps and vendors. It’s enough to make entrepreneurs think they need to chase down the “next big thing” and clamour for the media limelight.
But limelight doesn’t guarantee success. Many companies that drew huge amounts of press and venture funding have ultimately failed. The better path is to focus on the work and trust that attention will come. Put out a great product, and be rigorous about clearing ones path to growth. The accolades will follow, but they matter only if one can scale and thrive sustainably.
- A small (or nonexistent) network
Being a first-time entrepreneur, with a near-nonexistent industry, developing contacts is one of the biggest challenges to overcome. A strong network is crucial to a company’s growth. But strong networks aren’t built through viral campaigns or flashy marketing. They develop over years through resilience, relationship-building and cultivation of a community around the idea. In Japan and China, sustainable strong networks are and integral part of the value chain and supply chain
To build a supportive network around one’s own business, the type of reach an entrepreneurship wants to have is critical. Is the brand primarily local? Therafter, a blue print needs to be put down, roots have to be made, , through partnerships and sponsorships with influencers in the region.
If the entrepreneur wants to have global appeal, there is a need to attend conferences and reach out internationally to learn how to move into other markets. The entrepreneur must become relevant to the rest of the world.
- Growing too much too soon
With the objective of growing production, the problems also compound at the same rate. Figuring out how to scale requires frequent testing and a willingness to pivot — the entrepreneur doesn’t want to miss out on strategic opportunities. For instance, there’s nothing wrong with starting small and growing slowly. It’s better to take that approach than to overinvest in a lackluster strategy. One needs to pay attention and switch gears when that’s needed.
When Groupon, a US based start-up started the concept of online couponing in 2008, it was a tremendous hit. But Groupon focused too much on customer acquisition and not enough on customer retention. So when the company rushed to scale, it hadn’t dealt with its preexisting issues. Within months of filing its IPO in 2011, Groupon’s share price plunged from $20 to $9.
As common as these issues are, startup founders are actually the biggest bottlenecks in their own businesses. They believe they have to do everything themselves, and they try to charge through problems on their way to growth. Hence, there is a strong need to create strong internal bonds and decentralisation systems.