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12 Hidden Challenges of Starting Business in a Village

starting business in a village

Don’t you wish that someday, after having enough of the noisy city lifestyle and all the stress that comes with it, you can finally pack up and start a business of your own in a serene village atmosphere? But don’t worry! Reflecting the nature of the current environment, let’s explore the 12 hidden challenges of starting business in a village and how to overcome each of them.

There are many people who enjoy the constant fresh feeling in the air, the community and the fewer number of crowds which is what makes it even more alluring.

However, before you make the transition to leave for the country side to start your business, there is something you need to know and that is the fact that doing business in a village is also accompanied by different set of challenges. These are some of the invisible traps that someone can easily get into when pursuing a business venture and can lead to the failure of a business.

1. Limited Market Size

First on our list of 12 hidden challenges of starting business in a village and how to overcome each of them is limited market size. Since they are often home to fewer people, they have less demand, which constrains them to a smaller number of customers. This can place a pressure on the businesses in an organization to achieve a volume of business necessary to sustain, let alone grow.

• The Challenge:

The biggest challenge is the restricted market demand that you will face while on the field. Cities usually have more families than villages, hence fewer customers in a village comparatively to in a city. It can be challenging to build demand and reach the levels of volume consumption needed for the viability of such businesses.

• How to Overcome It:

To overcome this challenge, one is required to be creative in order to work around the many constraints involved. Devise ways that will enable one to target the small market segments within the village that are not adequately served with the products. The following strategies should be employed as guidelines in the course of the systematic market research efforts.

Moreover, it might be useful to integrate the sales and delivery options that are not limited within the village in which the company is located. This way, you are able to meet many more customers using Internet selling while still remaining in your village, so to speak.

2. Restricted Human Capital

Second on our list of 12 hidden challenges of starting business in a village and how to overcome each of them is limited access to skilled labor. Aimed at providing descriptive and analytical information regarding the human capital constraint of limited access to skilled labor.

It is a challenge to find good talent in villages primarily because there is limited educational institutions and training centre in these areas which hinders the availability of talent.

• The Challenge:

If one decides to look for workers from the village, it will be very difficult to find a well-qualified personnel. There are few towns to provide education facilities like school and colleges and other training centres that provide qualities human resources and it becomes a headache for you to find out a good worker.

• How to Overcome It:

Provide training and development programmes and support local talent through staff housing schemes. On the job training, you place your workers in a position that will ensure that they make a dedicated and professional service provider for your business. Moreover, examine possibilities that workers may be recruited from other areas working from home, or with options to come to the village occasionally.

3. Inadequate Infrastructure

Inadequate infrastructure is 3rd on our list of 12 hidden challenges of starting business in a village. Common infrastructural challenges would be lack of good connectivity, electricity, a poor road network and generally poor infrastructure that may negatively impact business and supply chain.

• The Challenge:

Infrastructure remains a major challenge in villages where roads may be poorly developed, the internet connection below standard, and utilities not extending to the area. These concerns can greatly jeopardize your business processes.

• How to Overcome It:

When searching for the location to develop a village, focus should be on regions that have relatively enhanced infrastructure. It is also important to engage with the local authorities to upgrade these services; several companies can create an association to negotiate enhanced services.

For internet connectivity, consider satellite ISPs, expand internet service providers, or seek partnerships with existing suppliers for service improvement.

4. Regulatory Hurdles

Number 4 among the hidden challenges of starting business in a village is regulatory hurdles. At times dealing with local authorities may not be easy because there are different rules and regulations in different states letting alone different villages where it may take lots of time for one to understand the different regulations that apply to his or her business.

• The Challenge:

The point in a village requires a lot of consideration when it comes to the ability to deal with regulations. Each of the village may have its peculiarities and rules which can be uninteresting and Lengthy in case of Implementation.

• How to Overcome It:

Do not overlook the existing laws governing such activities at the local level and ensure that they nurture good working relationships with the local authorities. Local consultant or lawyer can also be hired to avoid being trapped in some legalities which you might not be aware to avoid. They can assist in proving that all legal permits and licenses that you are supposed to acquire have been obtained.

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5. Limited Access to Financing

It is often easy for banks and investors to consider higher risks when out financially in villages —so it may be even more difficult to get loans and invest.

• The Challenge:

It is much less easy to negotiate funding in a village than it is at large in urban centers. Future funding was an issue since banks and investors might consider investment in business in less popular area risky and less profitable.

• How to Overcome It:

Vertical and Horizontal analysis; Assess your business’s strengths by conducting a market analysis that focuses on your business’s ability to cover the costs and grow in the market.

To finance the business, new opportunities like microloans, crowd funding, and grants provided by the government or non-profit organizations that are aimed at the development of rural territories are to be considered. This can also help in easier access to credit since the bank gets to know the companies and their capability to pay the loan back well.

6. Supply Chain Issues

Another one of the many hidden challenges of starting business in a village is supply chain issues. Managing this issue has always challenging particularly in the aspect of demand reliability for the supplier and contracting the necessary supply chain logistics that may cause delays or high costs.

• The Challenge:

To bring about this issue into perspective, it is very important to say that managing a fairly good supply chain can easily be a nightmare in a village. One disadvantage of centralization is that there may be a restriction of access to significant suppliers and tremendous issues to accomplish a specific level of supply chain efficiency.

• How to Overcome It:

Maintain a sound supply chain management policy that involves sourcing for materials directly from the rightful suppliers and developing ways of purchasing materials in a bulk form. Explore the local purchase to be able to overcome the regular increasing of prices due to transportation costs and delay.

Also, proper implementation of inventory and management of inventories make it easy to monitor any depletion before they get finished completely.

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7. Marketing and Visibility

Some of the marketing strategies used by firms in Kenyan market may not work effectively for the following reasons: The traditional marketing communication tools may not be as effective in explaining the firm’s operations and products to the increasing small customer base in villages since this set of consumers is small and infrequent.

• The Challenge:

Items like billboards and any publicity at large events will not have an impact here because there is a relatively small population size in a village. There are some barriers like; it can be challenging to gain visibility.

• How to Overcome It:

Maximize the adoption of leverages such as digital marketing. Social media should be developed and used regularly together with having blog and professionally designed webpage and content marketing to expand the circle of people interested in products and services being offered.

Organize your business using contact with appropriate communities or social media stars. Villagers are highly involved in sand activities, and, therefore sponsoring such activities will also increase your association and brand name within the village.

8. Seasonal Variability

8th on our list of 12 hidden challenges of starting business in a village and how to overcome each of them is seasonal variability. It is important that the research recognizes seasonal variation in economic growth and availability of consumer goods since villages especially those that are farming based, have their resources and spending ability strained at certain periods of the year.

• The Challenge:

Seasonal changes in the villages may also affect your operations Depending on the region, the seasons may have an effect on the business of the villages. Subclasses such as agricultural may have varying income and spend depending on the cycles of the farming seasons.

• How to Overcome It:

Another area to target is the frequency at which your clients make purchases, in order to have a constant stream of income all year round, extend your company’s line of products and services.

For example, if your business is a brick and mortal store, think about stocking up on clothes and accessories that are popular during specific seasons or providing services that customers need all year round.

This means that you should familiarize yourself with the economic factors involved in your area and how they affect your business cash flow and the changes in your business strategies to fit the flow of business across the seasons.

9. Isolation and Limited Networking Opportunities

This is because the candidate will have a very limited opportunity for networking since he / she will be the only one chosen to join the program.

The lifestyles of village living do not afford interaction with other business personnel thus networking is minimal and there is constraint in new ideas and synergizing.

• The Challenge:

Some are located in remote areas and without proper network connectivity, it can be quite challenging to communicate and interact with other business people and professionals. This can keep you imprisoned in your own thinking, restricted from finding other ideas, partnership as well as professional contacts.

• How to Overcome It:

Some local business associations and Chambers of commerce are available to provide you with key business contacts within the region. Clients can be found at regional and national business conferences and trade shows to widen the business circles. Other opportunities include connections and resources available through social professions, website-based networking tools, and profession forums.

10. Cultural Differences

Another one of the many hidden challenges of starting business in a village is cultural differences. It is actually very complex to work with different villages as each village has got its own specific that can actually be really hard to grasp for the member of the outside group.

• The Challenge:

Each village has its own culture and its people’s relationships and social networks are also specific. It can be quite tasking as an outsider trying to decipher how this culture can be assimilated into the mainstream one they are used to.

• How to Overcome It:

It’s actually important to immerse oneself with the people of the community and understand them and their ways. The best way of demonstrating a commitment to the village is to take part in the activities that are carried out in the region.

Local employees can also be useful assets as they contribute to filling the cultural barriers and give their insights into the local market trends. Politeness and willingness to grasp all the complexities involved will help a lot in gaining their support.

11. Resistance to Change

A culture that is prevalent within the villages is that people prefer the traditional ways of doing things hence making it difficult to bring in new products and services within the same setting.

• The Challenge:

There may be a high tendency to stick to the ways of the past means, people in villages may not be so receptive to change. This positions can also make it hard to introduce new products and services into the market due to the resistance the products will encounter.

• How to Overcome It:

Put your business in a state where it affects the community. But before making decisions, it is recommended to conduct surveys/focus group discussions to get an opinion and/or complaints. Make a point of sensitizing the community through display of your products or performing some demonstrations to those who would be interested in your services.

Aside from managing resistance, there are instances where people and organizations are reluctant to accept the products or services being presented to them; this can be explained as follows: Building trust and establishing the credibility of the products and services that are offered in the market can eliminate such a hurdle.

12. Work-Life Balance

Last but not the least on our list of 12 hidden challenges of starting business in a village and how to overcome each of them is balancing work life. As a result of working within a small close-knit community, the lines between business/work and personal are often hazy, which significantly contributes to the lack of work-life balance for business owners.

• The Challenge:

In some cases, working in a village can make a lot of distinctions between a business and personal life less clear. Organizational culture in villages is rather tight-knit and thus blurs the boundary between work and play own time management is even impossible, which often leads to exhaustion.

• How to Overcome It:

Try to establish parameters as to where Xian’s work and personal life intersect, and where they do not. Conventional working hours must be established and everyone maintains the schedule religiously. Set up a zone that is solely dedicated to work to eliminate interference between your working environment and your home.

Be mindful about one’s health and ensure to rest more often. It is good to have our family and friends supportive, participate in our business but makes sure that as a result of doing the business we don’t let go of the business activities all the time and forget the rest of the activities in life such as family and friends.

Conclusion

This paper seeks to explore and discuss the various challenges that arise when one intends to start a business in a village and how the challenges can be surmounted in order to warrant success in the business. However, it is possible to consider these challenges as opportunities when you have a detailed understanding of the local market, invest in your community, and embrace technological advances.

It hardly pays to forget that every struggle is an opportunity to revolutionize yourself and make a change. Experience that and they learn that running business in a village can be one of the most fulfilling adventures in one’s life and business.

Well, now that you have known how to start a business in a village, are you ready to jump right in? If approached properly and designed to be durable, there are factors hidden beneath that can be successfully managed, creating a successful business not only for the self-interest of the new business owners but for the betterment of all stakeholders of the community. Happy entrepreneuring!