Starting a new business is a dream for many budding entrepreneurs. However, several obstacles stand in the way of turning that dream into a reality. We’ve identified the top five barriers to entry for small business entrepreneurs, backed by credible sources.
1. Access to Capital
The first and foremost barrier is access to capital. According to a U.S. Federal Reserve report, 43% of small businesses struggle to get the funding they need. The lack of adequate funds can stifle growth, delay market entry, and even force businesses to shut down before they’ve had a chance to thrive.
2. Market Competition
Next is the fierce market competition. The Small Business Administration states that 99.9% of all businesses in the U.S. are small businesses. With such a crowded marketplace, differentiating your business from competitors can be a challenging task.
3. Regulatory Compliance
Regulatory compliance is another significant hurdle. A 2017 survey by NFIB found that small businesses spend an average of $83,000 in their first year alone to stay compliant with regulations. This steep cost can be a deterrent for many potential entrepreneurs.
4. Lack of Skilled Workforce
The fourth barrier is the lack of a skilled workforce. A 2019 LinkedIn report revealed that 89% of small businesses find it difficult to hire skilled employees. This shortage can significantly hamper the growth and success of a small business.
5. Limited Customer Base
Lastly, a limited customer base presents a significant challenge. A study by CB Insights found that 14% of startups fail due to poor marketing, which results in a lack of customer awareness and a limited customer base.
As a small business entrepreneur, understanding these obstacles is the first step towards overcoming them. By securing adequate funding, differentiating your business from the competition, staying compliant with regulations, hiring skilled employees, and effectively marketing your business to a broad customer base, you can break down these barriers and set your business on the path to success.
If you’re seeking expert guidance to navigate these challenges, consider partnering with Omnis. We can provide the necessary advice, strategy, and resources to help your business thrive against these odds.
Contact us today to optimize your business today and break down the barriers to entry!