Challenges of Business in Todays World - 3505 Words

Challenges of Business in Today’s World Abstract This paper will describe the challenges associated with newly formed enterprises, the viability of niche products being introduced into bigger markets and the impact that they entail, and also discuss the reasoning behind consumer’s fascination with exclusivity. Six examples companies will be provided to explain how these factors worked into their success. Challenges of Business in Today’s Economy Identify at least three challenges when setting up a business. Explain why they are challenges. In today’s credit crunch global economy many entrepreneurs are faced with the daunting tasks of not only finding the necessary resources to produce their products, but the funding and crucial†¦show more content†¦This type of financing also hinders an entrepreneur’s ability for expansive growth in the beginning stages, thus creating a restricted consumer base. Establishing Structure of A Business Another hurdle in starting a business is deciding what type of structure an individual would want to run it under. The legality issues, involving debt liabilities and the taxation of profits can provide even the savviest entrepreneur with unwanted nuisances. Without the proper structure, not only could a business owner receive civil liability from the IRS but criminal actions could be taken as well. Knowing exactly what guidelines constitute for each entity available is vital for a business to survive. (Structure) For example, a limited liability allows a proprietor to report profits and losses on their personal income tax return, while under a corporation they cannot. Having legal input will help tremendously in reducing the risk, but any owner should be aware of the entity laws within their state as well. After a businessperson establishes the corporate structure of how their business will run, the next barrier would be the hiring of staff to keep the business running. Many entrepreneur’s in the beginning stages choose the most cost effective, stable form of staff; doing most of the work for themselves. However for the others, the business is just simply too large for one to handle. This is the instance where an ownerShow MoreRelatedThe Role Of Management During The 21st Century : Challenges And Opportunities1080 Words   |  5 PagesThe role of Management in the 21st century: Challenges and Opportunities The development in management studies has flourished largely; it is with no doubt that the internet and information technologies have caused this major development. On one hand, the classic management practices became less effective in organisations. On the other hand, the effects of the global economy have introduced new management concepts that shape the world business activities. 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