The Concept, Advantages, Disadvantages, And Challenges Of Startup Business
My Assignment "The Concept, Advantages, Disadvantages, And Challenges: Startup Essay" will explain the meaning of startup with advantages and disadvantages. And the challenges that may face any entrepreneurs decided to startup business. As an application i will provide an important case that we may use in our daily lives. This case will be about jumia which has become the first startup application in Egypt.
Start up companies: - A startup company that is just beginning to develop. Startups are usually small amd initially financed and operated by a handful of founders. These companies offer a product or service that is not currently being offered elsewhere in the market, or that the founders believe is being offered in an inferior manner. (Fontinelle, 2017) In the world of business, the word startup goes beyond a company just getting off the ground. The term startup is also associated with a business that is typically technology oriented and has high growth potential. Startups have some unique struggles, especially in regard to financing. That’s because investors are looking for the highest potential return on investment. And there are many entrepreneurs start their business by taking loans from banks, if a startup takes out a bank loan, the business must make monthly payments to pay down the debt and any interest or fees.
There are many challenges that may face anyone who decided to startup a business. First one finding your team You need people who can run the show with you but it is often difficult to afford them. And you need flexible partners. Second one know how money flows It is not involving around to know the profit and loss only, but to understand your receivables, payables and the net position at all times. Third one dealing with competitors to avoid any competitions that may be happen. When dealing with competitors in the same industry it help you to work in a good environmental and you will focus only on what you do and let the public or client decide who they would like to support. Fourth one risk management A big part of growing and expanding the business is in taking risks playing on the safe side will only take you that for but it would not prove if a business is successful or not (JAYNE,2017)
So starting a startup business may have several advantages and disadvantages Regarding this topic, there are some Advantage: - First one you can gain alot of experience by working with any startup. In all aspects of the business, creativity has a big role in starting and operating the business and the owner who is control of all aspects of the business. Second one you are not obligated to work in the same traditional job culture. Also if you limited by certain amount of money or capital available, you can start on a small scale. Third one entrepreneurs usually start businesses doing something they love. May startups for entrepreneurs it is a part time and this will improve their lives. So they will motivate any new ideas may this will success or support their project. Moreover smaller teams always tend to be closer teams and they always support and motivates each other also.
Disadvantage: - First one You don’t have a fixed sallery per months, it depends on your work and the final output. Which is very risky. Second one it is very rare to get promotions or bouns because they works in a team and all workers generally on the same level. (Tapaswi, 2017) Recently entrepreneurship has improved in egypt. And the entrepreneurial scene is currently growing in egypt.
The public more awareness on the importance of entrepreneurship. When the private sector started work on programs to motivate or support entrepreneurs the ecosystem has developed. Moreover Egypt’s startup industry growing fast in the region There are new investors from abroad and egypt started to show their interest in startups along with government initiatives. The Egyptian government’s priorities focused on the large scale project. Such as suez canal. ( Mostafa, 2016) The case Jumia in Egypt is a number one online mall was established in july 2012 and thier aim to become the one stop shop in Egypt with implementation of best practices both online and offline. So jumia is the largest ecommerce platform in africa, jumia initially starting with three employees, jumia presently has a staff strength of 350 young and entrepreneurial Egyptian. Now they covering 23 countries in africa. Jumia is not only an ecommerce platform. It's really a global ecosystem, so not only can buy a phone obviously, but you can also book a hotel, you can look for a flat, Or even look for a job. At jumia, there are three things that are super important for them: the convenience for example. It’s cash on delivery, and free returns, and price. They are working very hard to get the best prices in the market for their customers. They have developed a full marketing expertise to address the specific needs of each market. They need to rely on flexible partners that can adopt fast. As a cheif marketing officer, they always looking for marketing partners. They always looking for new powerful solutions to increase their reach towards the most relevant audience. Jumia has three main goals. First one: to increase the average basket value.
Second one: to increase the return on investment for their marketing spend. Third one: to scale up their reach across multiple African markets. Jumia has grown a lot in the past years. Finally, to wrap up everything, we can conclude that, start up helps many people to upgrade their lives. And can not deny the risk that any one can take. Recently the Egyptian government start to support startup business, and the foreign investors play a important role in startup businesses they may provide help for other people to startup their business. Also the role of the bank very important help many youth to start their job dreaming it is risky of course because it is require monthly payment but if the business success so it does not matter for them. And it is preferable to startup business sole partnership, To avoid alot of problems that may happen. But if you start the business with partnership you must choose flexible partner to guarantee good job.