Owning a small business takes a lot of hard work. Even though it is small and some people may think that managing it is not difficult, small business owners face unpleasant problems every day. Most owners will agree, however, that owning your own business is a gift.
There are many challenges for small business owners. Since most small businesses are also sole proprietorships, the owners don't have anyone to help solve the company's problems. In addition, small business owners must decide every aspect of a good business resource like the company itself. You can visit tmp.ucsb.edu/new-venture/new-venture-competition to get new venture challenge.
Larger companies have someone for each of these tasks, so the workload is spread over several people. Also, in a small business, the owner is almost never able to take a vacation, because the business needs it almost all the time when it is open and sometimes when it is not.
There are many financial solutions that even small business owners have to deal with. In new companies, in particular, it is very important to monitor finances. If the gross margin (sales minus variable costs) is not always higher than the firm's fixed costs, the firm will likely go bankrupt.
If this happens and the company lacks capital, the entrepreneur will have to pay all outstanding debts. If the entrepreneur has invested all his money in the company, or if there is no other source of income, there is a high probability that the company will go bankrupt.