The biggest problems in self-employment

Self-employed people are tough track and field athletes – they rush over hurdles, straighten up again and keep sprinting to the next barrier. 23 companies crash per working day at one or the other obstacle. You can read here what exactly these obstacles are and how to avoid them with the help of 5 tips.

The main causes of company insolvencies are economic downturns and internal management errors. The chronic shortage of resources of

Often threaten the existence of small businesses.

Self-employment problems: let's take a closer look at these three sources of danger:

1. Financial resources: the dear (missing) money

Small entrepreneurs are exposed to a credit crunch. Commercial banks are stricter in lending to small than to large companies. Loans are also charged higher interest rates and other costs because smes, from the banks' point of view, have a more dubious credit rating and increased risk.

The policy environment also targets large businesses: the government's stimulus packages and financing assistance are being adapted to the needs of large companies. A loose-loose situation therefore results.

In addition, it is impossible to obtain venture capital in austria. The startup would have to be known beyond national borders and be brimming with potential – otherwise it is rather unlikely that investors will take on the bureaucratic hurdles to get involved.

Small businesses suffer from legal frameworks that are actually tailored for large companies. This also applies to social security, which has some businesses on its conscience.

2. Personnel: expensive or costly?

Many small business owners complain about high personnel and non-wage labor costs. Also the lack of qualification or motivation of employees or. Freelancer makes some to create. The saying "cheap is expensive" is often true here: professionals make fewer mistakes, which you have to pay for afterwards in a laborious and costly way.

3. Know-how: a little bit of everything

The hobby becomes a profession! A dream idea that drives many to ruin when it comes to realization. Sure, most are good at their hobby – but a healthy dose of business knowledge and entrepreneurial spirit is what creates a solid foundation in the first place.

According to the motto "do it yourself and all the time", mainly sole proprietors handle areas such as marketing, CRM, sales, acquisition, etc. Alone from. Together with the chronic lack of time, the subsections fall by the wayside and are carried out unprofessionally.

5 tips to get barriers out of the way ahead of time

    Even more so if you are doing well, to compensate for shortages in advance.
  1. Focus your marketing on your target group.
  2. Make sure you have sufficient financing, take advantage of subsidies for small businesses.
  3. Always put your orders and agreements in writing.
  4. Don't save on personnel, only let professionals do the work.

Result: the unfavorable political conditions in austria for small entrepreneurs (due to the abstinence of an adequate representation of interests) in addition, self-inflicted wrong decisions end for many independent ones in a downward spiral. Precaution is better than aftercare – this also applies to corporate health!