A Successful Startup. Issues Related to the Planning, Creation and Execution of a Startup

Index

Introduction

Summary of the Literature Studied on Entrepreneurship

Prominent Issues Related to the Planning, Creation, or Execution of a Successful Startup

Common Issues, Problems, Challenges, or Strategies Presented in the Literature

References

Introduction

The present essay summarizes existing literature on entrepreneurship. It indicates the prominent issues related to the planning, creation, or execution of a successful startup. Finally, it identifies common issues, problems, challenges, or strategies that exist in literature.

Summary of the Literature Studied on Entrepreneurship

There are many definitions of entrepreneurship in the literature that suggest the lack of a standard definition of the notion. Most concepts, however, accept that entrepreneurship consists of creativity, risk taking, identification of opportunities, motives for high growth opportunities, and uncommon judgmental decision-making (Zoltan & Laszlo, 2010). Entrepreneurship was considered by Krivokapić and Jaško (2015) as a combination of planning, creativity, and risk taking. Reuben (2012 ) observed that entrepreneurship refers to a hyper-specialized ability set possessed by a very tiny fraction of the population. Abdulnasir (2018) regarded entrepreneurship as a process conducted by an entrepreneur to generate added value and wealth by finding business opportunities, organizing enterprises, undertaking risks, and economic uncertainty and there by contributing to economic growth.

The entrepreneurship literature acknowledged the importance of entrepreneurship in job creation and in the contribution of economic growth. In order to fulfill its role, however, entrepreneurship needs a favorable environment that enables innovation and growing entrepreneurial activities to be generated. Krivokapić and Jaško (2015) have developed a close relationship between business activities and the business climate in which they are initiated.

In developing such an atmosphere, the role the government plays is central. The literature notes that colleges, chambers of commerce, and experienced entrepreneurs have a role to play. Biden (2014) indicated that the task of government is to combat corruption; to eliminate unnecessary cumbersome bureaucracy, to ensure that women are not lagging behind in the process of contributing to growth, to establish conditions for entrepreneurship, to allow individuals to unlock their talents through private enterprise, and to exercise political and economic freedom. Government should create a rule of law-based political structure that guarantees basic freedoms including freedom of expression, freedom of faith, etc. Universities should work through study and internship to promote and improve students ' entrepreneurial skills before they leave school. Developed entrepreneurs and chambers of commerce have the task of mentoring the future generation by sharing their achievements and mistakes with the expertise they acquired.

Establishing a new business doesn't always involve money. Having a successful plan and a high degree of creativity will help a business develop. Reuben (2012) gave a good example related to how marketing a service before implementing it can fit well for that strategy. For any company, having a successful business model can be a key success factor.

Prominent Issues Related to the Planning, Creation, or Execution of a Successful Startup

A lot of things have to be considered before forming a startup and not considering them is planning to fail. Entrepreneur (2015) presented a list of aspects to be considered, such as having a business idea, having quality of leadership, choosing the team to work with correctly, having enough capital, including working capital, having a good plan materialized by a business plan, executing your plan, using your time, having a good crisis response plan, organizing marketing activities well, and planning

Common Issues, Problems, Challenges, or Strategies Presented in the Literature

Anna (2018) listed 11 challenges facing startups. Among other problems she described capital, without it a business can't manufacture, can't employ professional workers, and key staff can't pay vendors, can't pay wages and salaries. Another stated problem is not marketing and sales considerations. It does not matter how it is used, but for a start-up, marketing remains important. Another stated challenge is the lack of good planning done by business plan. Key areas such as sales, growth, hiring, skills shortages and funding should be included in the business plan. Finding and recruiting good people is another aspect listed. Many businesses need those skills to expand and succeed.

Finding and recruiting good people is another aspect listed. Many businesses need those skills to expand and succeed. Another factor which has been listed concerns time management. Focusing on important things constitutes a business obstacle. For a start-up, attracting co-founders will constitute a challenge. It is important to find the ones that can fill one's void. Established challenges include scaling up, leaving one's comfort zone, coping with rivals, getting good management and seeking a mentorship.

Working without a clear strategy, weak leadership, product without distinction, not taking into account consumer needs, not being able to learn from failure, weak management, not having access to resources, conducting premature scaling, poor position without visibility and accessibility, continuous loss , poor inventory management, weak financial management , lack of priority, George (2020) refers to the use of company funds for personal reasons, over-expansion, macroeconomic conditions not beneficial, working with no succession plan, working with the wrong partner, working without a specific plan, working without principles, etc. as a factor responsible for a company's success or failure. A study conducted by Ahmed (2019) in Qatar revealed that bureaucratic requirements, restricted access to capital, restrictive and biased legal conditions, and social constraints are the key obstacles to entrepreneurship.

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