Hi Academia,
UKM / IKM naik kelas ( SME-s to Next Level ) , i called this as Venture Builders
Easy to say, though …and Hard to internalize and materialize.
Venture Builders are Entrepreneurs whom dare to invest time, skills, moneys to start up their Business. These do need qualities:
Risk taker, Initiative, Creative, motivated, determined, innovative with strong leadership skills, yet they have to be good communicators.
Entrepreneurs in some Countries e.g Indonesia are benefitted from government’s policies as this sector will be easily triggering massive Jobs creation to lower unemployment, increasing competition as many suppliers are providing more choices with relatively lower prices. They can also provide specialist or new services. Start-up businesses will be also embryo for larger business if they are successful.
Governments will also provide a range of supports including coverage of financial through soft loans and subsidies, lower tax rates- information, advice.
Despites some of those supports, converting Venture Builders onto next level are so challenging. Most probably they should have some required emotion quotient as above.
These below are also some major root causes why Business remain small or even failed
Business could remain small as they could be within wrong business/ service whereby Demands in market may not be large enough so it is not possible to grow. Goods or services offered could require specialties or too segmented. Some problems are also turned out that business remains small as the owners want to be their own boss. Or this is also part of their strategy to keep business small to remain their flexibilities and are able to react to market changes quickly.
And Many business failures are mostly due to some of these below :
- New businesses are at higher risk as they are not established in the market.
- It can be difficult to persuade customers to try a new product.
- Owners may lack experience to make the right decisions.
- Raising finance. and cash flow are common problems
- Changes of technology
- Economic factors
- Overexpansion
- Poor planning
- Competition
- Lack of marketing
- Etc.
Those above are mainly why Venture Builders / startup must think of gaining correct features of what type of business they would go into. Whatever decision on Business features /forms they would decide , those may impact on strategies they will go through.
Private sectors business normally are classed into four structures :
- Sole Traders
- Partnership
- Private limited companies
- Public limited companies
Those all business structures must be selected as appropriate as part of strategies of starting up Business.
We take one of example if Entrepreneur decides to tke this business feature
Sole trader
One person owns and controls the business, This is the most common form of business and unincorporated business whereby the owner does not have a separate legal identity. E.g: carpenter, hair dresser, local stall owner.
This type of business has these characteristics:
Strenght
- Can make decisions
- quickly Easy to set
- Keep all the profit
- Business details are private
- Total control
Weakness
- Unlimited liability
- Limited sources of finance
- No one to share workload
- Only have own skills and ideas to rely on
- Carry all business risks
These will be surely different if entrepreneur decides to to choose Partnership, Private limited companies, Public limited companies business frameworks
Salam Sehat Semangat Sukses
Bambang Purnomo , SS-BA, CSCA, CAVM Solution Consultant
By Bams – April 23, 2022
