What hinders the development of industrial entrepreneurship? The answer is simple enough

What hinders the development of industrial entrepreneurship? This is a question that representatives of business quite often ask themselves.

If in a nutshell, then to such factors it is possible to carry a high cost of rent, an economic crisis, various fluctuations in the currency market, low labor productivity, and also arising problems in logistics.

Let's try to dwell in more detail on each of the listed factors in this article.

Types of business activities

Examples of industrial entrepreneurship involve the production of specific goods or the performance of work. Also in this area can be provided services, create some spiritual and intellectual values. Depending on the chosen industry, the following types of entrepreneurship are distinguished: industrial, agricultural and construction.

Organization of business

Have you decided to open an industrial and commercial enterprise? Great idea! However, it is necessary to take into account some nuances.

Production in itself implies the release of any finished product, which can take two forms: a product or a service. Also, this product can both be finished products, and serve as raw materials. For example, the milk received is a finished product sold to the end customer, and raw materials that go to the dairy to produce various products.

What hinders the development of industrial entrepreneurship at the initial stage?

Production always involves some difficulties from the very beginning. So, at the very beginning it is necessary to purchase equipment, which is quite expensive. Sometimes its cost reaches 3 million rubles. The next constraining factor is the imperfection of the legislative base. So, a lot of types of production activity presuppose availability of any certificates or licenses. And this is due to the idle time in lines, the registration of an infinite number of pieces of paper and the presence of additional costs.

It should be noted that about a third of the world's business falls on manufacturing for small businesses. In this area includes the production of food products, the provision of personal services.

Stage of development

This stage for many representatives of small business is known as a stage of growth. This period goes after the "design" and is associated with the company recruiting turnover. Now the businessman is already facing other barriers.

So, the first barrier is considered to be arising difficulties with subordinates. Some types of industrial entrepreneurship mean having a large staff, which a good administrator should manage. Since in this case it is a question of small enterprises, experienced and highly skilled workers have disassembled the companies larger. And production for small businesses is satisfied with young specialists.

The second barrier is competition. Often, the sphere of activity that produces certain goods, is already occupied. Therefore, it is necessary to make a lot of efforts to take "a place under the sun".

Stage of maturity and emerging complexity

This period is characterized by a certain slowdown, when the economic entity has already reached certain heights, its own niche in the business sphere is occupied. At this stage, profits no longer make rapid upward spikes, the company develops evenly and incrementally. Often it is during this period that managers can not determine in time what hinders the development of industrial entrepreneurship, and this leads to the fact that they are allowed 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, the company can expect bankruptcy. As any company must constantly develop, it is necessary to please its customers with new and more favorable conditions, it is necessary to adapt to the external environment.

Stage of withering

This stage can occur if there is little time to devote to development in the previous period. However, there is an opinion that his "coming" is inevitable, so you need to experience it correctly. At this stage, there is a rapid drop in profits, and there is a need for a struggle for a new "place under the sun".

As already mentioned, such negative tendencies are associated with late responding to the shortcomings of the previous stage. The businessmen themselves do not notice the decline in time, and the situation is often aggravated. Therefore, throughout the entire operation of the business entity, it is necessary to carry out thorough monitoring, collect information about competitors and maintain feedback from customers.

Another mistake that leads to the onset of the withering phase is the fear of the entrepreneur of any difficulties: do not confront them, but simply escape them.

Conclusion

Thus, determining what hinders the development of industrial entrepreneurship, it is necessary to note the following. 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, insecurity and the desire to shift all responsibility to the unsuccessful development of the enterprise on others can restrain potential.