Entrepreneurship creates both progress and development. This explains the increased numbers in the entrepreneurial sector of the economy. The bulk of such projects are concentrated in the urban areas owing to the availability of resources at the expenses of less growth in the rural areas. Choosing to venture into the rural market, poses several challenges for a business.
To avoid having your company follow the proverbial story-line of failing within the first months after inception, do consider the following key pointers when getting into the rural market.
Establish a Market Gap That You Can Fill
It is a fun fact that the startups in the urban areas may address various issues owing to the diversity coupled with the numbers of the population in the urban areas. Most areas follow a different script and a startup should be able to solve a particular need in that area. Observing this works as an advantage for startups so as to grow their revenue and survive beyond the first year.
The particular solution to the gap in the market should be tailored to suit the locals in the area. This then gives you an edge when it comes to dealing with the competition.
When looking for funding sources for a rural venture, chances are that you will experience several hurdles. For starters, investors may not be very enthusiastic about a venture in the rural area unless it is unique. You, therefore, need to come up with a convincing business plan as to why you believe that you venture will succeed. You need to instill confidence in the lenders before they can part with their money to invest in your rural business.
When it comes to marketing, the competition you may face as a new entrant is quite fierce. Individuals in rural areas are very particular, and they maintain loyalty once a relationship is established. Breaking the loyalty and offering an alternative can prove to be an uphill task.
Already established firms create a higher expenditure for startups with respect to the promotional activities startups have to undertake in to create a space for themselves. Many startups opt for middlemen who are known when venturing into the local scene. All these work to your disadvantage as an entrepreneur.
Human Resource Challenges
Rural areas suffer a great setback when it comes to labor. A low-skilled labor force and the negative attitude most may bring to the workplace. A high skilled workforce comes equipped with knowledge in the craft coupled with years of experience, areas that the workforce in the countryside may not necessarily have. This proves to be a challenge in providing the expected quality, quantity, and the expected turnover.
For such challenges, solutions ought to be addressed to encourage more of such endeavors to grow and not just survive. Here is a look at some.
When it comes to fast internet speeds which is now essential for most businesses, technology has indeed been of help. Previously having fast internet was a large issue in rural cities but now you have several options. Look into wireless internet if you find your conventional options lacking. In the long run, the time saved and revenues generated, become a plus for the investment made on connectivity.
Offering Staff Training
Quality service and products are offered only when the production is not compromised. As such, there is a need for training for staff members, in the startup in a bid to increase their output and productivity. There are several training facilities that offer continued teaching that would improve their skills.
Entrepreneurship addresses gaps in the markets and as such, ways to protect the survival of such ventures should be addressed. Knowing some of the challenges faced by many rural entrepreneurs is the first step of protecting their survival.