What are the risks and disadvantages of starting a business?

The risks faced by first-time entrepreneurs in the process of starting a business mainly include the influence of their own factors and social environment. Specifically, they mainly include the following factors:

(A) their own mentality is not mature, it is difficult to bear setbacks

First-time entrepreneurs have not experienced the test of entrepreneurial setbacks, and their psychological endurance and self-adjustment ability are poor. After starting a business, they have a strong sense of frustration, anxiety, timidity and guilt. They can't correctly understand their own entrepreneurial advantages, and even regard their own advantages as shortcomings. In the entrepreneurial competition, they lack self-confidence, limit themselves and miss many opportunities, which seriously affects the success of entrepreneurship.

(B) single financing channels, lack of motivation for the development of entrepreneurial enterprises

Many first-time entrepreneurs have no source of funds, no accumulation of funds, simple social relations and single interpersonal communication, and rarely raise venture capital from other places. Their venture capital depends more on the help of their parents and relatives, and the financing channel is single, the source of funds is unstable and the amount of funds is small. The financial restrictions at the beginning of their business laid a hidden danger for the later development of the enterprise.

(C) the choice of entrepreneurial form is blind and lack of pertinence.

First-time entrepreneurs have high entrepreneurial passion, but their entrepreneurial choices are blind. Most of them don't do pre-research and performance analysis, but imitate others' practices. They lack the investigation and analysis of their own strength and conditions, and their business forms are blind. Once confused by hype, many entrepreneurs blindly choose to join the chain without collecting information, conducting on-the-spot investigation and market analysis. Because it is not suitable for their actual situation, the risk of enterprise development is greater, which affects the success of entrepreneurship.

(d) Lack of management experience and good entrepreneurial team.

Efficient management experience and a United management team are the key factors for the success of entrepreneurship. Many first-time entrepreneurs lack practical management experience, financial management, marketing, communication and coordination and other general abilities, which often lead to thin business philosophy, dull product marketing methods, information occlusion, Qi Xin team and so on. , and can't control the enterprise in the complex and changeable market economy.

(five) the concept of the legal system is not strong, and the awareness of rights protection is weak.

Due to the lack of social experience, weak market sensitivity and weak legal concept in the early stage of entrepreneurship, it is possible to fall into legal traps at the beginning of entrepreneurship and even in the whole process. For example, when an entrepreneur signs a contract with a customer, he does not pay attention to the examination of the other party's subject qualification, and does not investigate and understand the other party's credit, performance ability and debt repayment ability, which often leads to the invalidity of the contract, the other party's failure to perform the contract and even fraud of money or goods. When the interests are infringed, entrepreneurs have a weak awareness of safeguarding rights, which is not solved through legal channels, but by entrusting people, finding relationships and solving them privately, which has great legal risks.