People who decide to start a business generally face similar obstacles
The uncertainty of knowing whether the idea will be successful or not, the fear of failure, the team of people, the lack of capital, are just some of the obstacles that entrepreneurs must overcome. What weighs more on the decision of people who give up on their purpose to start a business, the shortage of money or the business concept?
Whether we want it or not, money is a factor that affects the decision of many people not to undertake business initiatives, at this time there must be people with business ideas in their heads, some small, others giants, but all in need of capital, not only to start but to consolidate.
I have known cases of people with great ideas who gave up their dreams due to the difficulty in accessing the necessary capital to transform them into reality. You will be thinking that these people were losers and very little persistent, some maybe they were, but others believe me they were not. I know that they have fought, I know that they have searched by all means in public and private entities, with investors, in short, they have exhausted possible sources and achieved nothing.
I know a microenterprise in the textile sector, which has been operating for more than four years, sells all its production, controls its costs, even managed to export to the US, but at the precise moment, when it was presented with the opportunity to go from Micro to small or medium business, through a maquila contract for an American firm, did not find the money to grow and is now stagnant. It tried to seek financing to expand its plant and its equipment through commercial banks but since it did not have enough guarantees, it could not access credit, it appeared before state institutions that promised soft loans for SMEs, but it hit a wall of bureaucracy and formalities. What happened to the company? stagnated, did not export again, its sales began to fall, well,an opportunity to consolidate the business turned into a nightmare.
Difficulty
In Latin America it is particularly difficult to get to where the capital is due to the undercapitalization of our economies
On the other hand, there are business ideas that have been born by chance, others are born from a conscientious study, but all are born as the solution to a certain need, some initiatives come from people with a high level of studies, others arise from someone with little education.
Both initiatives have something in common, the business concept is an issue that contains a lot of uncertainty, since it can only be tested until it reaches the market, it is the consumer who will determine if it is viable or not. All the requirements can be met, a great team, capital, technology, desire, etc., but what happens if the product or service we offer does not conquer the market? The blow will probably be as or harder than that produced by the scarcity of economic resources.
I consider that both the capital and the concept are variables that must be faced when deciding to create a company. Which one weighs more? I believe that each project is different and that the variables affect each one in different ways.
