Entrepreneurial challenges are ever increasing. Opportunities for entrepreneurs to start and grow businesses are the highest it has ever been in the history of mankind.

The failing rate of new entrepreneurial business continues to climb.  So why is there such a high failing rate when opportunities are abundant? Entrepreneurs must surely be aware of this contradiction, yet this does not prevent them from pursuing entrepreneurial activities.    Is this contradiction real? If yes, can this riddle be solved?

This raises many questions, like:

Is it fact or fiction that there are so many business opportunities? And are these opportunities real, or are they only dreams of wannabe entrepreneurs?

What is the best way for entrepreneurs to react to this situation? What is the solution to this possible contradiction for me, as an entrepreneur?

Let’s look at a few facts about the environment in which we live:

  • Our generation is more privileged than any previous generation, with the highest standard of living.
  • The availability of new knowledge is growing exponentially.
  • The world has more individual freedom and democracy than ever in history.
  • Due to the development of medicine there are less child deaths than ever before and life expectancy is the highest ever.
  • World-wide people are better fed than ever before.
  • Literacy is the highest in world history.
  • Poverty is decreasing.

This list can go on and on.

The most important thing though is that all these factors are still improving – the world has not reached the peak of these improvements for mankind.

The world is better connected than ever before, with socio-economic, political and business environments changing very fast. And the rate of change is ever increasing.

New business opportunities are becoming available mainly due to the following:

  • Changes in the lifestyles of people create new needs, desires and aspirations, which in turn create new business opportunities.
  • The development of new technologies stimulates new desires and needs, thus creating more marketing opportunities to sell products and services to satisfy these needs.
  • The spending power of consumers world-wide is increasing, creating more opportunities to buy products and services.
  • Funding and various funding models for the development of new entrepreneurial businesses are more freely available than ever before in history.

These changes create new challenges for entrepreneurs who need to adapt accordingly, or risk failure. Entrepreneurs who can’t adapt will not succeed. Let us analyse a few new challenges facing entrepreneurs in the present age:

  • The fact that knowledge is so freely available creates the opportunity for competitors to enter the market more easily.
  • Due to the fast-changing environment, entrepreneurs need to adjust much faster to changes in: the market, technology, consumer trends, their competition and various other environmental factors.
  • Entrepreneurs need to be able to integrate more knowledge, expertise and teams of people than in the past.

These and many other related factors put more emphasis on the entrepreneur and his abilities to handle and manage a business in this new environment.

The key to success is an increased ability of the entrepreneur to understand himself, his own skills— focussing on self-awareness and self-development. So many entrepreneurs see the problems of their businesses to be: cash flow, not enough clients, people problems, not having the right personnel and many other so-called business related problems. However, the real problem is often their own lack of skills and self-development necessary to truly understand the root cause of their problems.

It is therefore vital for entrepreneurs to understand that the real root cause of their challenges is not the environment – it is their own lack of skills which prevents them from understanding the real cause of the problem.

The challenge for entrepreneurs in this new environment is to spend more time and money on their own personal development. This strategy is essential for them to survive and flourish in the present day environment.

The knowledge is available to change the present high failing rate of entrepreneurs. The opportunities are there to assist entrepreneurs— it is for them to decide how eager they are to use these opportunities for self-growth and business success.