4. challenges encountered by entrepreneurs in provision of pharmaceutical services

Challenges encountered by entrepreneurs in

provision of pharmaceutical services

Coverage

a) Explain political and legal climate in relation to pharmacy business

b) Explain innovation and creativity (changing tastes and attitudes) in pharmacy businessc) Explain knowledge of product market

d) Explain entrepreneurial attitudes and sustainable drive

e) Explain skilled labour retention in pharmacy business

f) Describe strategies for capacity building in pharmacy business

Challenges Faced by Entrepreneurs

These include; Analysing problems and risks One of the critical skills needed by an

entrepreneur is the ability to identify and evaluate the risks associated with the new venture idea and to react to them by developing strategies to overcome or manage them.

Some of the risks associated with a new venture could include:-

3

Challenges

Technical: The technology capable of doing what you need it to do may be very expensive/ or you may not be able to access it locally.

You also may have a problem sourcing the technical skills.

Performance risks: Performance risks can be twofold-they could relate to the performance of your employees or the performance of your business.

Employee performance is always a risk, and a challenge to an entrepreneur.

4

Challenges

People need to be managed very closely in terms of their performance, otherwise they can cost you a lot of money and impact hugely on the success of your venture.

If your business does not perform as anticipated, you could run into all sorts of problems with your cash flow and operating capital.

As an entrepreneur you need to have identified this risk and have a contingency plan in place.

5

Challenges

Timing: The timing of your venture is vital – the time needs to be right for the market to accept your offering.

You need to consider the life cycle of the product offering, the state of the economy, the season if it is relevant.

Sometimes your lead times can be a risk to your business.

This is especially a problem if you purchase from overseas say your raw materials and /or technology

6

Challenges

Community and cultural risks: Products and services that address anticipated needs in the community may backfire. Products that are not aligned with the local culture will always be a challenge and pursuing them will carry a high level of risk.

Environmental risks: Any changes in the external environment of your business could create risk for your business. From the risk of natural disasters to the risk of fluctuating exchange rates and interest rates.

7

Challenges

A successful entrepreneur needs to have evaluated the possibility and the repercussions of this risk, and have contingency plans in place to manage them.

Any business venture will face its fair share of problems throughout its lifespan. It is how proactively you deal with the problems that make the difference to your success as an entrepreneur.

8

Challenges

The problems of entrepreneurs may be divided into two groups: External problems and Internal problems.

External problems are those which result from factors beyond the control of the entrepreneurs while

Internal problems are those which are not influenced by external factors.

9

Challenges

Internal problems include:-1. Planning – technical feasibility (inadequate technical

know how, location disadvantage, outdated production process),

-Economic viability (High cost of inputs, choice of idea, Break-even point too high).

2. Implementation – cost over-runs resulting from delays in getting licenses, sanctions, inadequate mobilization of finances etc.

3. Production – Inadequate production management, labour management, financial management, administrative management

10

Challenges

External problems include:-1. Infrastructural (location, Power, Water,

Communication etc.)2. Financial (Capital, working capital, Long –term funds)3. Marketing4. Taxation5. Raw material6. Inspections7. Technology8. Government policy etc.

11

Capacity building for Entrepreneurship

Entrepreneurship has its own rewards. An entrepreneur is his own boss, can set his

own hours, can own his business with investments – partly his own and partly from banks, is his own master and can plan the growth of his enterprise the way he wants.

Below are some tried steps for capacity building for prospective entrepreneurs. Positive attitude – Success is 90% attitude

and 10% aptitude. A positive attitude is bound to lead to success.

12

Capacity building

Learn to handle money intelligently – For success as an entrepreneur, it is absolutely necessary to become an efficient money manager.

Expect “no”- Realize that no’s are not personal. Every “no” gets you closer to a “yes”. Put your best foot forward and you will get a “yes”.

Be involved – Be a part of what is going on and network with others in your field.

13

Capacity building

Remember the magic word – In business the magic word is “Ask”. Never expect the business to come to you. You create your business by asking for it.

Be a goal setter – Set your goal, write it down, set a target for achieving the goal and mobilise all your energies and resources to accomplish the same each day, each week, and each month. Little can ever be accomplished without definite goals.

14

Capacity building

Be organised – Each evening, list all the things you want to get done the following day. That gives you an organised approach to each day. As each task is finished, mark it off your list.

Be enthusiastic: Enthusiasm is the “fuel” that entrepreneurs run on. Enthusiasm generates its own energy. Energy and good health are synonymous with busy, happy people and people who are achievers.

15