Advances in Social Science, Education and Humanities Research, volume 470

Proceedings of the International Conference on Student and Disable Student Development 2019 (ICoSD 2019)

Challenges Faced by New Entrepreneurs and

Suggestions How to Overcome Them
Eng Yi Fong1, Mohd Khata Bin Jabor1*, Abdul Halim Zulkifli1, Mohamad Riduam Hashim1

1
Faculty of Social Sciences and Humanities, Universiti Teknologi Malaysia, 81310 UTM Johor Bahru,
Johor.
*Corresponding Author Email: [email protected]

ABSTRACT
All entrepreneurs especially the new entrepreneurs who are yet experienced in the business field, will
have the tendency to face various challenges on their road to success in this field. Based on this, this
paper sheds light on the various internal challenges as well as the external challenges that will be faced
by the new entrepreneurs. Apart from that, this study also aims in identifying the possible suggestions
that can be used to overcome those challenges. A review of secondary data including online journal
articles and publications were used to gather the data for this study. From the study conducted, it was
found that developing business idea and vision, raising capital for start-up and finding the right
business location are the among common internal challenges faced by new entrepreneurs. As for the
external challenges, new entrepreneurs are found to frequently face challenge in the form of
competition, unforeseen business challenges and others. Besides that, the study’s findings have also
revealed several suggestions which can help to meet those challenges faced by entrepreneurs such as
being optimistic towards the challenges faced, expanding the idea and vision to potential investors and
so on.
Keywords: Mobile application, university students

1. INTRODUCTION 2. METHODOLOGY/MATERIALS

According to the Business Dictionary, This study is done based on the secondary data or
entrepreneurship refers to the ability and willingness sources to discover the challenges faced by new
in organizing a business along with its potential risks entrepreneurs and also finding out the suggestions on
in order to make a profit from it. According to Lowrey how to meet them. These secondary data were
[1], the word ‘entrepreneur’ is being defined as an collected by reviewing online journal articles and
individual who desires to achieve his goals of publications that were related to the topic of the study.
economic survival and advancement. Applying to this In order to justify the research objectives, the data
context, entrepreneurs are the ones who will be obtained were presented and discussed systematically.
involved in this business field and they are known as
the people who organise and operate the businesses in
the entrepreneurship world. In fact, they are the ones 3. RESULTS AND FINDINGS
who are responsible in developing services and
products in our everyday life. According to McKenzie The findings and discussions of the study on the
et al. [2], entrepreneurs also holds the responsibility in various internal and external challenges faced by new
improving consumer’s lifestyles and also solving entrepreneurs as well as the relevant suggestions for
problems faced by consumers in this fast changing how to meet them is presented in this section.
world besides contributing to the national economic
income. However, all entrepreneurs especially the new
entrepreneurs who are inexperienced in the business 3.1 Internal Challenges Faced by New
field, tend to face challenges on their road to success Entrepreneurs
in this field. Various internal challenges as well as
external challenges will be faced by the new Entrepreneurs have to face numerous internal strains
entrepreneurs especially as they are still new in the on the road to success in the business field. For a new
business world and these act as hindrances to them in entrepreneur, the internal challenges faced is
achieving success. Hence, in this paper, the various commonly being referred to as the personal pressure
internal and external challenges faced by new experienced by an individual before starting off a new
entrepreneurs will be discussed in details. Also, useful business. These internal challenges arose mostly from
suggestions to help in overcoming the challenges personal issues. Hence, this section will discuss the
faced by them will be presented. most common internal challenges faced by new
entrepreneurs when starting up their own business.

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 Advances in Social Science, Education and Humanities Research, volume 470

4. CONCLUSION Economy. International Journal of Arts and

Commerce. 1(4), 264-274.
An entrepreneur can be defined as a person who
[8] Moutry, C. (2009). Looking Ahead: Opportunities
always seeks for changes, responds to it and exploits it
and Challenges for Entrepreneurship and Small
as an opportunity as well as constantly pursuing their
Business Owners. Western New England Law
goals even there are various hindrance and obstacles
Review. 31, 763-780.
(Drucker, 2005). As mentioned earlier, entrepreneurs
are also responsible in contributing to the economic
[9] Escalante, C. L., and Turvey, C. G. (2006).
growth in our country. However, new entrepreneurs
Innovation and Entrepreneurship in Rural
who are yet experience in the business field especially
Communities: Early Business Survival Challenges for
are prone to face challenges on their road to success.
the Agribusiness Entrepreneur. Southern Agricultural
From the findings, it was found that the common
Economics Association Annual Meetings, 1-27.
internal challenges faced by new entrepreneurs
include developing business idea and vision, raising
[10] Kuratko, D. and Hodgetts, R. (2007).
capital for start-up and finding the right business
Entrepreneurship: Theory, Process, Practice. Mason,
location. Meanwhile, for external challenges,
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entrepreneurs have to face challenges such as
competition, unforeseen business challenges and
[11] Voogd, P. (2015). The Entrepreneur’s Blueprint
expenses as well as finding good customers. Thus, in
to Massive Success: Creating an Exceptional Lifestyle
order to overcome the challenges, some suggestions
While Doing Business on Your Terms.
have been included in this paper as discussed
previously.
[12] Segal, G., Borgia, D., and Schoenfeld, J. (2005).
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