Obstacles to Business Launch
Vol. Volume 4, Number 2 April/1999
Howard E. Van Auken
Howard E. Van Auken is Associate Professor of Management in the Department of Management at Iowa State University.
This paper presents the results of a survey of the obstacles to business start-up among individuals who attended workshops that presented material on the evaluation of a business idea. All of the individuals included in this study decided against pursuing their business idea through the launch of a new venture. The results of the study indicate that time constraints, availability of capital, and risk tolerance are important common obstacles confronting potential new business owners. Individuals with business ownership experience believed that the obstacles to launch could be overcome as compared to individuals without business ownership experience. With the exception of gender, other respondent characteristics had little impact on whether or not the obstacles to business start- up could be overcome. The results of the study can be used in developing training programs that assist individuals in the screening of business ideas and the launching of new firms.
Business start-ups, entrepreneurship, obstacles to business formation