5 Challenges Student Entrepreneurs face and how to Overcome

Starting a business in school is like juggling two different lifestyles at the same time. It requires wisdom, determination, and a strong will to succeed without compromising your health and other life commitments.

Running a full-time business can be quite difficult due to the challenges encountered in the business world. And for student entrepreneurs, the workload is more hectic. However, with proper guidance and knowledge, you can learn how to build a successful business as a student entrepreneur.

In this article, we’ll examine 5 challenges encountered by student entrepreneurs, and how to overcome them. Let’s dive in.

5 Challenges encountered by student entrepreneurs and how to overcome

Here are 5 common challenges encountered by student entrepreneurs, especially in Africa and Nigeria, alongside what to do to overcome to enable you to build a successful business as a student entrepreneur.

1. Limited knowledge of business

The first challenge is the limited access to knowledge regarding how to run a business. For many student entrepreneurs in higher institutions, their first experience with business is their own business, especially if they are from backgrounds where their parents worked in the corporate world or where most people around them worked 9–5s.

With this lack of exposure to how business operates, there is a knowledge gap regarding what to do and how to do it to build a successful business. And this can lead to making wrong decisions that could ruin the business.

What to do: To overcome this barrier, start by reading books on business management, entrepreneurship, etc. Books like How to Sell to Nigerians by Akin Alabi, Start with Why by Simon Sinek, and The Lean Startup by Eric Ries, are great places to start.

Beyond reading, you can also get a mentor already running a business, preferably in your niche, who is willing to guide and hold your hands. Joining business communities where you can learn from and network with other business owners is another way to gain business knowledge to scale your business as a student entrepreneur.

2. Limited finance

To run a successful business, you need money for many things ranging from products, packaging materials, marketing, etc. This can pose a challenge for student entrepreneurs, especially if one doesn’t have much financial support from home.

What to do: To overcome this hurdle, start by pitching to your family and friends to invest in the business. This is a great place to source business funds, as it is associated with less risk and low or no interest rates. After getting these funds, and getting some level of traction, you can then apply for grants or loans from institutions to scale operations and offerings.

Related: 4 Ways to Determine a Good Investor’s Deal

3. Poor financial management skills

Poor financial management skill is another ticking bomb that can ruin a small business, and student entrepreneurs must pay attention to this. One common mistake student entrepreneurs make is mixing business and personal money, which can lead to spending both, especially when you need money for personal expenses.

Other financial issues could be not having a budget, not tracking cash flow, not setting the best prices, etc.

What to do: To best manage your business money as a student entrepreneur, you need to learn about financial management and get resources and tools to help you. Also, open a separate bank account solely dedicated to business transactions. This will help you build financial prudence and discipline when managing your business money.

4. Balancing school and business

Managing business operations alongside academics is another issue faced by student entrepreneurs. Imagine having an 8 am-10 am class, and a customer wants to get a product by 9 am that same morning. Navigating this situation successfully will require having structures in place and preparing well to serve your clients whilst not neglecting your studies.

Another instance will be if you have a test and a grant pitch on the same day. This situation also requires wisdom to navigate successfully.

What to do: The first thing is to get your priorities right. And as a student entrepreneur, your priority should be your studies. So, for instance, in the situation of having a school test and a grant pitch, start by weighing what is more important, or what will bring in more rewards at the end of the day.

Also, you need to set goals for your academics and business, then put structures in place to balance both without affecting the other. You also need to have great time management skills to help you properly allocate time to both school work and business, ensuring that they both get the attention they deserve for growth and success.

5. Competition from established brands

Competition from already-established brands can be another challenge, especially if you’re a new business owner. This is because these established brands already have a level of traction and growth, so, they are more trusted by people.

What to do: First, remember that being a student entrepreneur doesn’t make you any less than an entrepreneur. So, don’t run your business with a student mindset, but with an entrepreneurial mindset that you are building a global brand.

Next, look for a competitive Unique Selling Point to leverage that stands you out from these other established brands. It could be that you make same-day deliveries, you put personalized notes in every order you send out, etc.

Finally. Collaboration is the new competition. So, don’t be overly focused on competing with these brands, instead, collaborate with them and associate with them so that the trust people already have in them can be indirectly transferred to your brand.

Factors to consider when choosing a business type as a student entrepreneur

• Capital required
• Time requirement
• Ease of operation
• Environment

Turning challenges into hurdles for growth

Being a student entrepreneur gives you experience from two kinds of worlds, and even though challenges exist in both worlds, they can still be overcome with the right knowledge and structure in place.

This is why at Triift Africa, we are passionate about helping student entrepreneurs and recent graduates go from hustle to portfolio by exposing them to the knowledge, mentorship, and funding that they need to start and grow their businesses.

With our STart program, which is focused on helping student entrepreneurs and recent graduates; you can learn how to run a successful business and get guidance on how to scale and funding to expand. Watch out for the waitlist to join the second cohort of the bootcamp.