How to Start
Starting a business presents separate and unique challenges to the entrepreneur, depending on the nation and market that is being entered. However, there are several recurring factors that have an effect on an entrepreneurship, regardless of where it initially takes place.
To begin, the idea must be right. A new business should take advantage of something that the market needs. This can either be a new and creative product, service, or idea, or it may be to take advantage of a growing trend. Regardless, it has to be able to grab the attention of the consumer, and inspire a need that they did not realize they had. An entrepreneur must select the market carefully, doing an ...view middle of the document...
If the system is not properly planned and executed, the business will most likely fail soon after its inception, which is the case with a great number of start-ups. (http://www.nytimes.com/2009/09/03/business/smallbusiness/03sbizguide.html)
Barriers to Entry
China is a nation that has, for several decades, been under Communist control. This control has greatly impacted the business environment. In recent years, the Chinese government has become more lenient toward Western ideas and ways of thinking. Entrepreneurship is now a growing trend in the nation. However, barriers to entry still do exist for business owners. To start a venture in China, one must remember that everyone is still subject to untimely and seemingly unfair governmental decisions. Property rights are generally insecure, meaning the government is able to claim what they want, when they want it, if need be. At any time, the central government or the court system may make private decisions which influence a businessâ€™ future. As such, the transition to a capitalist market is not an easy one, and it is taking business owners and the government time to adjust. Banks are still not very receptive to the needs of entrepreneurs in China, so most lending comes from close family and friends. There is also a long-seeded Chinese mentality to be self-reliant, and many are hesitant to ask for funding from strange or unfamiliar sources.
The average start-up cost in China is under $20,000. This is in large part due to a lower national income rate, and the greater number of very small start-up businesses, such as street food vendors and the like. (http://www.stanford.edu/group/sjeaa/journal1/china2.pdf)
In Ireland, entrepreneurship is well supported by the people and government alike. It is considered an â€œentrepreneur country,â€ with approximately three out of every 13 people being involved in an entrepreneurship in some way. To start a business in Ireland, some hurdles still remain. Venture capital is not as available in Ireland as it is elsewhere in Europe, with Ireland ranking 13th out of 18 nations in the EU as far as venture capital usage. As such, the largest challenge facing Irish entrepreneurs is that of early financing, which is common elsewhere as well. With small businesses being such a popular trend, the market is crowded with many similar ideas, making the need for creativity and value that much more important. The economy did affect Irelandâ€™s entrepreneurs, however. Starting in 2001, the growth rate of start-up companies has dropped about 10-15%. Another barrier to entry is that while starting a new business is popular, and is not necessarily rocket science, there is a lack of true business knowledge and understanding concerning the subject in Ireland. There is not enough education concerning entrepreneurship available at this time. Lastly, with a small home-market in Ireland, to achieve true success requires expansion, possibly to mainland Europe.
Start-up costs in...