Anisuzzaman Chowdhury Ronny is a seasoned businessman with interests in any array of different industrial sectors. As the chairman of Navana Pharmaceuticals, Anowara Construction Ltd and Gas One, he has shaped a global portfolio of businesses that have pioneered their respective industries. This article will look at some of the biggest challenges to entrepreneurship today and how to overcome them.
From high employee turnover to plummeting sales, start-up founders and seasoned executives alike have to deal with an array of different challenges. An organisation’s financial management is essentially its backbone, impacting every aspect of operations. One of the most common causes of an enterprise stalling or failing completely is financial mismanagement and cashflow interruption. It is essential for leaders to create solid fiscal foundations, managing crises adeptly and proactively planning in the long term.
According to a report by Metrobi, 29% of small businesses run out of money before achieving profitability. Gaps between planned and actual expenses create a domino effect over time, with small variances compounding, leading to significant shortfalls. This is particularly problematic where revenue projections are not achieved or fixed costs unexpectedly increase. Even the most diligently prepared and monitored fiscal budgets cannot account for all external factors, with market disruptions arising from many causes – for example, regulatory changes, supply chain disruption, economic downturns, natural disasters or competitor actions forcing price adjustments.
Financial issues rarely arise without warning, with 82% of small businesses in the US citing a lack of healthy cash flow as their biggest challenge, Metrobi’s data reveals. This could stem from an array of different issues. Perhaps management created a budget but failed to adhere to it consistently. Some small business owners admit that they do not have detailed budgets at all. Those who do often regard them as fluid documents rather than guiding principles to be adhered to at all times. Without regular budget reviews and adjustments, companies leave themselves vulnerable to rising interest rates, changing market conditions or internal shifts in spending patterns.
Climate change and sustainability are becoming a strategic imperative for forward-looking business leaders. The environment is inarguably in trouble, with the worst impacts of climate change making themselves felt with increasing frequency and ferocity. To mitigate the risks, businesses must develop sustainability strategies, transitioning to renewable energy and green technologies and demonstrating their environmental commitments.
Another significant stumbling block for today’s companies is the ongoing skills shortage, a problem only exacerbated by an aging workforce and the ‘Great Retirement Boom’ as the baby boom generation leaves the labour market en masse. The changing employment expectations of a new generation of workers has culminated in a perfect storm, leaving many organisations struggling to recruit the right talent to propel their businesses forward. Even without the current skills shortfall, reaching the right people who share the company’s work ethic and vision can be challenging, particularly when competing with larger organisations. To overcome these challenges, business leaders needs to rethink their recruitment practices as well as overhauling their training and talent retention policies. By instilling an excellent company culture as well as offering incentives such as flexible working practices and continuous professional development schemes, businesses can make themselves more attractive to top talent.
Technological innovations are transforming entire markets today, posing yet another challenge for business leaders. The rise of AI places the onus on executives to stay on their toes, adapting quickly to changing market dynamics and leveraging the latest technologies to help them achieve and maintain a competitive edge. Since 2023, AI technologies have been deployed at a dizzying pace, forcing business leaders to overhaul entire operational processes and business strategies. Keeping up to date with the latest industry trends and emerging technologies better positions business leaders to pivot as and when the need arises, enabling them to sidestep risks and challenges and capitalise on untapped opportunities.
