Start-up company is trying to work with the least possible number of people, because profit does not allow additional employment, and there is uncertainty whether company will stay or fall. Communication in company is unstructured and informal. The need for specific human resources skills are still unclear, in terms of planning, since all process depends on whether the company will remain in the market or this entering phase will actually be also the closing phase. You are also unknown on the market and need to develop good and solid network, assuming that you already have some networks developed before even thinking to deal with start-up. There is a lot of literature on this subject, but most important skill you need to have is to ,, catch the moment,, to ,, feel and analyse the market,, where you are planning to work.

Usually start ups face many problems initially. Usually the feasibility of the venture, both technical as well as economic feasibility are common problems. On the technical side how good the market is for the product and assessment of the market size. On the financial side problems include that related to lack of funds and inability to pool funds. Besides a dearth of good management can also be a problem. These are just a few problems

I would say that it is moving towards doing everything legitimately. Entrepreneurs do not have an idea one evening for a business and then have a legitimate business the next day. It is a slow process of putting everything on a legal footing. Some two-thirds of all businesses globally start-up their operations unregistered (i.e., lacking registration with the required authorities). It is therefore the process of formalisation that is the most important problem faced by start-ups. I attach some papers. 

Enis, after many years of studying this question I am firmly of the opinion that the major problem facing entrepreneurs is not identifying a problem or pain that people find extreme enough to warrant paying for a solution.  Additionally, most do not have a clear idea of the business model that will enable them to deliver their value proposition to the identified customer segment. Hope this helps.

Start-up company is trying to work with the least possible number of people, because profit does not allow additional employment, and there is uncertainty whether company will stay or fall. Communication in company is unstructured and informal. The need for specific human resources skills are still unclear, in terms of planning, since all process depends on whether the company will remain in the market or this entering phase will actually be also the closing phase. You are also unknown on the market and need to develop good and solid network, assuming that you already have some networks developed before even thinking to deal with start-up. There is a lot of literature on this subject, but most important skill you need to have is to ,, catch the moment,, to ,, feel and analyse the market,, where you are planning to work.

I think one of the many teething problems that a start up is refers to lack of planning, in particular financial.

Furthermore, the precise definition of your target market, often poorly selected, is one of the factors that complicate the start a small business.

There are just a few problems.

I echo the comments of John Volker.  Most start-ups do not clearly understand the need in the marketplace and the customer buying behaviors.  They do not segment the market in a disciplined way and do not distinguish  the product or service need, their value proposition and the buying behaviors.  Without this they struggle to get sales, which requires more capital.  An excellent source for this type of planning is The Disciplined Entrepreneur by Bill Aulet from MIT.  Hope this helps.

I agreed with other esteemed colleagues. 

In my point of view, for small business, it is usually the finances issues. 

I have some info on this, based on some literature in Malaysia context:

Ting (2004) identified five key challenges faced by Malaysian SMEs; lack of access to finance, human resource constraints, limited or inability to adopt technology, lack of information on potential markets and customers and global competition. He also argued that there is a high risk for SME to be wiped out if they do not increase their competitiveness in the new, rapidly changing world of globalisation. In the blueprint of the SME Masterplan, an analysis of findings from the World Bank Productivity and Investment Climate Surveys (2012) revealed that there are six factors which influence the performance of Malaysian SMEs. These six factors are Innovation and technology adoption; Human capital development; Access to financing; Market access; Legal and regulatory environment; and Infrastructure.

Hope it helps.

Thanks and Regards

Low

http://mahdi.hashemitabar.com/cms/images/Download/handbook-of-technology-and-innovation-management.pdf

Dear Enis,

A new start up really faces several problems like gaining access to funds, difficulty in getting timely credit, inability to buy modern and high tech machinery and other appliances, no knowledge of complicated laws, dealing with various government officials, dealing with unskilled manpower, lack of awareness of schemes introduced by the government for the support the particular industry.

Finance, business plan, know how, 

Unless authorities in designated country change view on start - ups in sense of developing financial markets and allowing venture capital to access more easily, entrepreneurs  and their start ups have less chance to develop in right manner. Do not forget that seed phase is over and market signals have been accepted. If financial market is centered toward banks, start up will have problems with finance.   

Dear Enis

Most of the startup facing following major problems in the beginning:

a)  How to commercialized idea ( Implementation)  , which is very practical problem. b) Arrangement of infrastructure and initial fund to make things at competitive scale. c) Time horizon in Registration of Idea/ Product and d) getting first few customers for initial success and generate day to day expenses.

After getting Initial success, they got confidence and see product response which help them in raising more fund.

Dear Enis Mulolli

greetings,

Yes . I agree what Ashok Gupta  said .

Best Regards