What hinders the development of manufacturing entrepreneurship? This is a question that quite often representatives of business ask themselves.
In a nutshell, these factors include the high cost of rent, the economic crisis, various fluctuations in the foreign exchange market, low labor productivity, as well as emerging problems in logistics.
Let's try to dwell on each of the listed factors in this article.
Types of business activities
Examples of manufacturing entrepreneurship involve the manufacture of specific goods or the performance of work.
Also, services can be provided in this area, and some spiritual and intellectual values may be created. Depending on the selected industry, the following
types of entrepreneurship in this area are distinguished: industrial, agricultural and construction.
Business organization
Decided to open a production and commercial enterprise? Great idea! However, it is necessary to take into account some nuances.
Production itself implies the release of any finished product, which can take two forms: a product or service. Also, this product can either be a finished product or serve as a raw material. For example, the milk obtained is both a finished product sold to the end customer and raw materials supplied to the dairy for the production of various products.
What hinders the development of manufacturing entrepreneurship at the initial stage?
Production is always fraught with some difficulties from the very beginning.
So, at the very beginning it is necessary to purchase equipment that can be quite expensive. Sometimes its value reaches 3 million rubles. The next limiting factor is the imperfection of the legislative framework. So, a lot of types of production activities require the presence of any certificates or licenses. And this is due to idle time in lines, execution of an infinite number of pieces of paper and the presence of additional costs.
It should be noted that about a third of all world entrepreneurship falls into production for small businesses. This area also includes the production of food products, the provision of domestic services.
Development stage
This stage is known to many small businesses as a growth phase. This period comes after the "design" and is already associated with the company gaining momentum.
Now the businessman is already facing other barriers.
So, the first barrier is considered to be the difficulties encountered with subordinates. Some types of manufacturing entrepreneurship involve a large staff, which must be managed by a good administrator. Since in this case we are talking about small enterprises, experienced and highly qualified workers were disassembled by larger companies. And production for small businesses is content with young specialists.
The second barrier is competition. Often the field of activity that produces certain goods is already taken. Therefore, you need to make a lot of efforts to take a "place in the sun."
Maturity stage and emerging difficulties
This period is characterized by a certain slowdown, when a business entity has already reached certain heights, its own niche in the business sphere is occupied. At this stage, profit no longer makes rapid leaps up, the company is developing evenly and progressively.
Often, it is precisely during such a period that managers cannot determine in time what is hindering the development of industrial entrepreneurship, and this leads to the fact that they make the same mistake.
In this case, we are talking about a weakening of attention. Many at this stage of development think that they should not worry. However, without appropriate development, a company may expect bankruptcy. Since any company must constantly develop, it is necessary to please its customers with some new and more favorable conditions, it is necessary to adapt to the external environment.
Withering stage
This stage may occur if little time is devoted to development in the previous period. However, there is an opinion that his “coming” is inevitable, so you need to survive it correctly.
At this stage, there is a rapid decline in profits, and there is a need to fight for a new "place in the sun."
As already mentioned, such negative trends are associated with an untimely response to the shortcomings of the previous stage. Businessmen themselves do not notice the decline in time, and often the situation is aggravated. Therefore, throughout the functioning of the business entity, it is necessary to conduct careful monitoring, collect information about competitors and maintain feedback with customers.
Another mistake that leads to the onset of the wilting phase is the entrepreneur’s fear of any difficulties: not to resist them, but simply to run away from them.
Conclusion
Thus, when determining what impedes the development of industrial entrepreneurship, the following should be noted. The main problem in the suspension of the development of the enterprise is still in the owner of the company. His laziness, fear of difficulties, self-doubt and the desire to transfer all responsibility to the unsuccessful development of the enterprise to others can hold back the potential.