The entrepreneurial spirit is alive and well, aided by the rise of the Internet and the desire of so many people to take their good ideas and make a business out of them on their own. The opportunities for small business owners are endless when they take the right approach and follow through, yet the challenges to be faced are not inconsequential.

It’s a surprising fact to many, but small businesses are actually in the large majority, while the biggest corporations make up only a tiny percentage of businesses in operation. The services provided by small businesses keep local communities functioning, while the opportunity exists for an expanded client base when the internet traffic is handled wisely. However, the list of challenges staring any small business in the face cannot be ignored. Here are the five most common challenges and how to confront them.

1. Staffing concerns. A poll conducted among small business owners pointed to staffing concerns as the top challenge each must face. How is it possible to keep the best employees once they have mastered the business? A key decision must be made: whether to share profits or not, risking the departure of the best staffers to corporations happy to pay higher salaries. Before such an event occurs, see if there isn’t some form of benefit package which might make everyone happy.

2. Maintaining credit lines. The crisis which began in late 2008 was directly related to the credit markets, and thus the credit pinch began to affect small businesses in an unprecedented way. It is essential to keep a company’s credit rating high, making the choice easier for banks when it comes to loan approvals. Credit cards are fine temporarily, but the interest rates continue to rise.

3. Staying afloat during down economic times. Before 2008, this topic may have been lower down on the list, but now it is inescapable. Small business owners need to tread carefully, even when it seems like the good times are here to stay. Re-investing money after a great deal is a wise move, or paying down debt to clear the table for the next step.

4. Staying on top of tech issues. Whether it’s the company’s website - usually the primary source of contact with the consumer - or the software used internally by employees, keeping up with the latest advances is essential to a small business. Even if the payroll doesn’t have room for a full-time tech wiz, keep one on retainer to avoid crises.

5. Observing regulatory procedures. Most businesses confront the issue of regulations imposed by the government in the beginning of the operation and leave it on the back burner afterwards. This tendency is natural, yet complying with regulations is essential for staying in the game without any hitches. Since business owners can’t find the time for these concerns, it’s best if they are assigned to top management early on.

The good news for small businesses is there will not be too many departments involved when an issue has to be addressed. If the key members on staff stay focused, there is no obstacle which can’t be sidestepped.

Damian Papworth is an expert in small business website marketing. He tries to help small business owners by assisting them learn about internet jargon and small business web design

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