1 ) a) Farah lacked knowledge on setting up a business,
because she did not have knowledge on how much of
paperwork was involved in setting up a business. Due to
less knowledge or without an advisor, the chances are
higher for Farah to make poor decisions.
b) The finance in the business was insufficient, as capital
from the entrepreneur or other investors are crucial for a
business, lack of finance and/or knowledge of financial
supports and/or investors can lead to failures in Farah’s
business.
c) It is always important to choose a favourable location for
a business in order for the better run. Farah found the City
Centre locations expensive. As her business dealt with
selling finished dresses, Farah needs a better location
where people demand for her products. If not, risks for
business failures may be higher.
2) In a business all problems do have its importance but
some may have higher roles in a business which will only
be better if the problem is dealt. From these problems, it is
accurate to say that the lack of finance in Farah’s business
may be the important one among these problems. Finance
or the capital of the business the inflow in the business
invested by the entrepreneur or other investors, in order
for the day-to-day expenses of the businesses, so it is crucial for the business to store such finance
and as Farah cannot meet the appropriate amount of inflow for the business it is vital to find a
solution for the current problem. It is never easy to raise needed fund for the business but some
solutions should be taken place. One of the solutions is finding a bank loan for short term. Businesses
can be helped by loans given by the banks, but as banks will request Farah for her business’s last year
statement to assure the loan is paid back with interests, Farah will find difficulties in getting a loan.
Another solution will be searching for investors for her business, such as deciding on making her
business a partnership contract, or letting shareholders buy shares as for a private limited company.
The disadvantage for Farah may be, as she holds less knowledge than other entrepreneurs about
start up businesses, If the business hits its depression state, Farah will be facing huge liabilities and
will be forced to pay her investors or shareholders from her personal finance like every other
entrepreneur. Other solutions for this problem can be dealt with having a financial advisor who can
advice Farah about financial supports which she’s not aware such as, A government subsides etc.
3) An entrepreneur can be anyone who is willing to take a financial risk and who is willing to manage
a business by aiming for profit. There are types of traits that makes an entrepreneur successful as it is
not easy to manage a business, it may need its personal qualities and particular skills in order to
obtain success in the business for being a successful entrepreneur. Every successful entrepreneur
who runs businesses had their own way of qualifications to start it, they may have their own
innovative ideas put into their businesses to work differently from other entrepreneurs to promote
their businesses or to attract the customers in their innovative ideas. The willingness to work hard to
reach their aim and to make themselves concentrated on managing the businesses without giving up
is one of the qualities of successful entrepreneurs. Entrepreneurs should also posses the skill of
leadership, as a business will have labours, it is vital for an entrepreneur to motivate the employees,
as motivation plays an important role in any businesses. Being Multi skilled, quick to learn are also
skills which can be advantageous, by having more skills to put in a business such as beings good at
satisfying the customers and handling the inflow and outflow of the business will always be
supportive to be an successful entrepreneur. In many start-up businesses it is seen that are easily
failed, but it is really important for an entrepreneur to not give up and have the ability to bounce
back, finding an solution to make it successful even after resulting a failure.
In the case of Farah and her business, it is visible that Farah posses some of the traits of a successful
entrepreneur, As Farah is keen and well qualified dressmaker, with better skills and the experience
from working for two of the biggest shops in her town. Even if she has no history of good leadership
skills, she is self motivated to work on her products to make profit and she innovated the idea of
attracting customers by giving lessons about her latest dress designs. As Farah is working harder to
see the success of the business by searching for financial support and trying to employ an
accountant, a employ who can help Farah in obtaining her business’s success, it is also visible that
Farah may have the self confidence and the ability to work hard and bounce back even if the
business’s results shows a failure.