Using an example of a small business/recently established new business, explain how its owners overcame the three challenges - New businesses, Economic growth and Innovation.
Finance:
A newly opened restaurant will need to have sufficient finance. They will need start-up capital to spend on equipment, and working capital to pay for day-to-day operations and maintain liquidity. They will also need a budget planned out for marketing in order to increase their sales.
Human resources:
The restaurant will need to hire an expert manager, who will be able to make strategic decisions that will affect efficiency and effectiveness of the business. The restaurant can also partner with the manager to reduce the monthly salary cost, and share the profit instead.
Production:
Quality control in the restaurant is vital. If the quality control is good, the business will gain good brand image for customers. On the other hand, they might lose sales if quality control is poor. Also, maintaining inventories efficiently is also important. The restaurant will be able to reduce expensive cost if inventories are managed well, if not they might face opportunity cost where too much money is tied up in inventories.