Opportunities and Challenges for Entrepreneurship and Small Business Owners in the US

It would not be wrong to state that entrepreneurs are the lifeblood of the U.S. economy. In fact, they own operate everything from small grocery stores to digital startups. Regardless of the size and scope, there are entrepreneurs behind every successful business and a private company. However, the journey to obtain success is full of opportunities and challenges. How an entrepreneur handles both of these factors determines the level of success they achieve. It is even unfortunate that some are overwhelmed and end up failing.

According to a recent publication by Fund Era, a staggering nine out of ten entrepreneurs will eventually fail. Such numbers may be disheartening, but it does not mean you should quit considering entrepreneurship for your career. With genuine passion, determination, great idea, and an implementation plan, you are in the path to becoming a successful businessperson. For every entrepreneur, it is prudent to comprehend the opportunities and challenges that you will tackle.

Challenges

Below are major challenges that small business owners in the US are facing now and in the coming years.

Taxes and Regulation

Nowadays, business conditions have a fundamental impact on entrepreneurial activity. Small business owners frequently cite tax and regulatory policies as a major challenge. The U.S has famously notorious states that impose a high sales tax. This is a drawback for small businesses striving to grow. To help small business, it would be best for policymakers to consider reviewing the tax policy and regulations.

Availability and cost of Health Insurance

In the last two decades, health insurance premiums have been on a rise. For instance, the cost of employer-sponsored health insurance plans has increased with almost 120% since 1999. Due to this, employers in small businesses and companies are less likely to offer health care coverage. Currently, providing health insurance for employees in small businesses in the US remains a problem.

Getting and Retaining a Quality Workforce

Small businesses in the US are in constant competition for labor with their larger counterparts. The remunerations offered by bigger business owners are relatively better than what their smaller counterparts are offering. This makes it more difficult for small business owners to acquire workers. Obviously, an insufficient number of workers will derail operations of a business and consequently reduce revenue.

Global Competition

Small businesses in the U.S encounter competitors on a number of fronts, both at home and abroad. Some structural disadvantages in international markets make U.S products less competitive. As a result, many companies have reduced their costs by outsourcing some processes and tasks abroad. In an effort to increase the ability of small businesses to compete overseas, the U.S government is lowering trade barriers. In addition, the government has enabling-programs under the SBA’s Office of International Trade.

Opportunities

Below are some of the opportunities that will prove beneficial to small business owners in the U.S. entrepreneurs should pursue these opportunities this year and in the coming years.

Increased Investments in Technology and Innovation

There are strong connections between innovation and the formation of new firms and businesses. The US policymakers fully understand that risk-taking entrepreneurs have positive impacts on regional economic development. Small businesses in the US are leading the way toward new inventions, processes, and products. Such innovations are vital to our economic growth of the U.S. This is because they will offer the tools to make our economy more competitive in an increasingly globalized marketplace.

Economic Gardening and Grooming Local Entrepreneurs

Economic Gardening has communities plow the dollars that would have been spent on luring big businesses to their town to promote local small businesses. Proponents of economic gardening suggest that grooming existing firms can ultimately lead to greater payoffs in terms of job creation. This is quite a huge opportunity for small businesses in the US.

Pursuing New Markets Overseas

The export sector is one of the strengths in our current economic climate. International trade represents an opportunity for small businesses not only in the U.S but also across the globe. In the past, many small business owners in the US have not been proactive about trading with foreign partners. While over 25% of the existing export value stemmed from small firms, entrepreneurs are yet to tap the potential in the export arena.

Advancing Education and Training

Getting education and training are important because there are strong connections between entrepreneurship and human capital. Moreover, small business owners in the U.S devote significant resources to training their workforce. Educating and training employees help firms to increase their labor productivity and reduce their labor turnover. Education is a way of retraining workers, building new skills, developing new talents and preserving worker’s morale. Failure to offer advanced education and training might result in a reduced competitive position for most talented employees.