a private entrepreneur perceives an opportunity, innovates a business idea, establishes a business, mobilises the necessary resources, manages the business, promotes it and assumes complete responsibility to bear the risks and challenges associated with it. A private entrepreneur differs from others in a way he or she assumes the complete ownership for the business with a readiness to undertake all the risks connected to the said business. Free enterprise is the term used to refer to such initiatives.
Entrepreneurship is indeed a highly risky and challenging arena. In as much as the entrepreneurs are willing to take up risks and work with challenges, they can turn difficulties into profits. However, for any unfortunate reasons if the business has to fail, then the founder is at a great risk. While it is said, “No pain; No gain”, the proverb fully fits to explain the role of a private entrepreneur.
One of the biggest problems faced by a private entrepreneur is the sourcing of funds for setting up and running the business. Most businesses fail due to exorbitant interest rates. Therefore, access to low interest funds is one of the necessary criteria for the success of any business. In addition, the entrepreneur also would requires sometime to pay off the loans after stabilising the business. Therefore, long term loans will prove to be immensely useful to a private entrepreneur.
In addition, the other crucial challenges in a private enterprise include sourcing the right kind of employees, human resources management, other resources management, operations management, market research, product or service promotion strategies and several others.