Entrepreneurship Challenges
In today’s uncertain economic landscape, more individuals are starting businesses and doing contract labor. The “start-up” and “side-hustle” economy is significant across historical, social, and cultural contexts. Due to the lack of resources (including economic capital) and information of many, it is essential to have communications plans for entrepreneurs to be able to not only create a purposeful brand but take the necessary steps to achieve profitability as quickly as possible. This plan exists to help accomplish that benchmark because “entrepreneurship has a significant role not only for economic development but also for the general progress of the society [and] the general progress of any country.”
Other experts suggest that economic capital can be defined as financial resources, real property, etc. Researchers note that small businesses thrive in areas of innovation because they lack the support of larger organizations. Many methods of financing a start-up business include credit card debt, business loans, funds from crowdfunding and angel investors, venture capital—investments from friends and family, personal savings, and home equity, each with its own pros and cons. No matter what type is selected, financing for a business is a serious matter.
Banking officer Mark Abell stated, “More than 500,000 businesses are established in America annually, but half of them fail within five years. The No. 1 reason for failure is a bad strategy backed by surplus optimism, but the next biggest cause of failure is a lack of funding.” While obtaining capital continues to be a significant issue for business owners, the second element, which is real estate, is getting somewhat more comfortable to navigate with affordable options such as month-to-month leases and the opportunity to scale up and down as needed. With co-working spaces, start-ups can rent a private office and meeting spaces instead of paying for an entire unit. According to researchers, the money that entrepreneurs save can be spent in growing their businesses in other ways, such as equipment purchases and contractor or employee hires.
Another benefit of co-working spaces leads to another area of the capital theory, which is social capital, defined as “relational connections.” Experts also describe the connections that are gained, particularly for women who often lack the networking opportunities of their male counterparts. Social capital is necessary for most business relationships, but even more vital for entrepreneurs. To maximize social capital, business owners must become “superstar networkers,” according to Bill Burg. First, Burg defines these individuals as persons whose businesses are incredibly profitable and whose personal lives are full of meaningful personal and professional relationships. Next, Burg says these superstar networks share two compelling traits: “number one they are givers [and] number two they are connectors.” This issue will be a common theme for anyone striving to create both impact and income. These networkers generate a circle of reciprocity, which is invaluable as it relates to social capital among small business owners. An additional aspect of these “superstar networkers” is that they are continually giving out information that benefits others without necessarily worrying about how sharing the information directly benefits them. Entrepreneurs must not be only aware of the issues that commonly prevent business success, but also obtain information that can help them thrive.
