Reasons why small businesses fail

[Starmix]

When there are big businesses, there are also small ones. the most common reasons include the following: lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives. I agree with these reasons for these were the causes why my brother failed in his small business. He retained those people who are not functioning well. His capital was also not sufficient to back up a marketing strategy. Marketing initiative is very necessary to avoid failure. Were you having a small business before but failed? Which among the reasons why your business failed?

 

[Shavkat]

The most common cause is mismanagement. I had seen some companies failed because of this reason. At some point, they did not conduct feasibility study before putting it up.

 

[Starmix]

The most common cause is mismanagement. I had seen some companies failed because of this reason. At some point, they did not conduct feasibility study before putting it up.

Others just proceed with their plans that are not put into writing only thru actions that may soon fade away. Mismanagement is always the primary factor of a failed business. Too much expenditure could lead to bankruptcy.

 

[Enxx]

Lack of capital is the main reason small business fails. And also dedication to the business is another thing that may cause failure

 

[Starmix]

Yes, you are so right, small capital means small business equals small profit and slowly goes down if not attended.

 

[Shavkat]

Others just proceed with their plans that are not put into writing only thru actions that may soon fade away. Mismanagement is always the primary factor of a failed business. Too much expenditure could lead to bankruptcy.

I agree with you. That's the reason why we need to conduct feasibility study as much as possible.

 

[Bisolami]

When there are big businesses, there are also small ones. the most common reasons include the following: lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives. I agree with these reasons for these were the causes why my brother failed in his small business. He retained those people who are not functioning well. His capital was also not sufficient to back up a marketing strategy. Marketing initiative is very necessary to avoid failure. Were you having a small business before but failed? Which among the reasons why your business failed?

I think a lot of them don't take their time to learn about the business before starting to do it

 

[Starmix]

I think a lot of them don't take their time to learn about the business before starting to do it

That might be true others jumped to conclusion and action without thinking if it's best or not.

 

[Springtime]

Lack of capital and not able to retain talented staff leading to mismanagement are some of the main reasons small businesses fail.

 

[Starmix]

I agree with you. That's the reason why we need to conduct feasibility study as much as possible.

That's so right feasibility study is necessary if the business we want to operate is feasible attainable and profitable.

 

[eldavis]

Most business today fail for various reasons, in most cases it could be lack of proper execution of the business plan, in some cases it could also be lack of capital as well.

 

[Starmix]

Businesses fail because the owner never cares to improve his business. It seems he is not anymore inspired or tired to do planning for a competition. Other reasons might be personal or family grudge that lowers the esteem of the business owner which is wrong.