Difficulties Faced by Startups

Updated: Feb 22, 2019

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The reason is mainly due to the nature of the entrepreneur that usually is behind the start-up, these entrepreneurs are usually young and mostly inexperienced.

At the same time, when startups succeed, they have the potential to become big for example Google, Apple, YouTube Facebook, Twitter, eBay….

Being relatively young, start-up founders and subsequently their startups face a variety of difficulties and challenges:

General difficulties faced by startups:

1. A small capital & lack of funding: With low or no funds to pay employees, or rent office space, most startup founders have no choice but to run their company from their garage and do everything by themselves.

2. Finding the right people for the job is not easy: Tech entrepreneurs or startup founders often do not have the skills to execute their ideas and finding the right persons is very hard.

3. Startups struggle with credibility: Like any new business, they’ll need a year at least before people start taking them seriously and having a young CEO/ founder doesn’t help at all.

4. Competition is tough: Whatever the startup is about, it will face competition from either locally established services or online services that offer something not very different. It is a tight market where other big names have already gained a large consumer base.

5. Becoming profitable is tricky: Startups often have a problem reaching profitability, mainly because they need a lot of advertising to achieve growth and thus they are often spending more than what they are making.

6. Growth is not easy: It’s tough to reach the critical mass that startups need to survive, that varies from one startup to another.

7. Dealing with Stress: Start-ups have top deal with many complex problems especially point 5 & point 6, which is more complicated than what standard small-business entrepreneur have to deal with.

8. Making the right connections: Often making the right connections can lead to an investment, an article in the press or even a co-founder or partner, that’s why founders try to network as much as they can, unfortunately, it’s often the wrong connections


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