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Essay on the causes of small business failure
Why small businesses fail
Small businesses are prone to failure
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Over the years, many people have started small businesses, but not many have succeeded. Some get lucky and some just don’t have the tendency to proceed after a certain number of years. As stated, more than half of all small businesses fail within the first four years. There are many factors. for example, one could be poor management leading to loss of staff due to lack of motivation. Another factor could be making wrong business decisions that lead to loss of profits and force them into bankruptcy. Last but not least reason to failure of small business is presenting the wrong types of products or services in the wrong type of markets.
Many business owners don’t realize how important staff appreciation is or even a small amount of motivation
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In order to run the business effectively, its extremely important to understand the industry and its trend. small business usually tends to have less understanding of the industry and less business knowledge and therefore they experience business failure early. Many small business fails because they are located in the wrong location. Wrong location could also be another main reason to why small business fail early. To all businesses, location is huge part of success, it should be convenient to your customers, suppliers and employees ”A truly profitable location will make money and the business will appreciate in value.” (Willerton, 2010) A business will be successful if it is located in the right …show more content…
One reason for failure is that small business lack the knowledge of marketing and they are presenting the wrong service for the wrong crowd. For example, like presenting products that only attracts their current consumers. It doesn’t help the business to grow and gain new consumers. Another reason small business fail because they’re not doing proper demographic research or It could also be the Stronger competition in the market. There is a higher chance of success due to big business and other competitions in the market that can lead small business
As with many small business owners they vision of their business usually only extends to their own abilities. They are driven and full of determination and believe their abilities will be able to sustain the business to success. Unfortunately, many small businesses lack the knowledge to be able to effectively be owners’ and leader’ to their organizations.
Response: Recognition is a big factors that helps with employee satisfaction and motivation. When an employee is excelling in their work and completing all goals and objectives, there hard work is recognized by means of gifts, announcements, and even the prime parking space at the organization.
Through the use of point of view, a writer’s work has the ability to change immensely. In Seymour Krim’s personalized essay, “For my Brothers and Sisters in the Failure Business,” his utilization of second person creates a special bond, solidifying a unique relationship between himself and his audience. Fresh and exciting aspects are introduced into his work that include new perspectives and the transformation of his story through the use of subjectivity. The author’s pairing of second person with other features of form is both exciting and brilliant. He shifts away from the norm of first person and chooses an appropriate level of formality for his theme of ambition. Krim uses his second person vocabulary which eliminates status while drawing
All employees analyze their environment and strive to be recognized and rewarded for their hard work and dedication they put into the company, in a word they are seeking justice. Justice can be defined as a person receiving what they feel they are entitled to and if they do not receive what they deserve the situation may board on injustice. Unfortunately in today’s society justice and appreciation are not given out to all those deserving (Pinder, 1998). A major problem to address is how to keep the motivation level high in a company when the employees do not feel appreciated.
Business owners could use incentives and gifts to encourage the workers. For instance, a store owner could initiate the idea that whoever brings ten new customers to the store this week will get a bonus in their pay check. Business owners could give raises, bonuses, and time off as incentives to work as hard as they can. By giving fun extras to the employees, they will feel compelled to do their best.
Business growth general is assumed to be good; bigger is assumed to be better (Hess, 2011), but if the proper planning is not in place it can lead to a business failure. Beginning a business based on something she loved, and needed in her life Susan Feller made the brave decision to build a successful business by baking and selling gluten-free cakes and desserts. After her retirement she focused on her dream and solving her own issue, finding food safe and healthy to eat for those, like herself, with Celiac disease and gluten allergies, but they also had to be delicious. Feller had some tough decisions to make as a small business owner, would she be able to keep up with the demand, how can she grow her business and what if she decided she had had enough and wanted to close the business? These are all decisions any business owner have to face at one point or another.
The culture of appreciating employees for their hard work and achievements by incentives shows how the organization values their employees. Lincoln believed “Status is of great importance in all human relationships. The greatest incentive that money has, usually, is that is it a symbol of success... The resulting status is the real incentive... Money alone can be an incentive to the miser only. There must be complete honesty and understanding between the hourly worker and management if high efficiency is to be obtained”. This shows how harmoniously the labor and management have to work together to produce
Katz, J. A., & Green, R. P. (2014). Entrepreneurial small business (4th ed.). New York, NY: McGraw-Hill/Irwin.
A small business are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular-sized business or corporation. there are many different types of small business such as convenience store, small grocery stores, bakeries, or delicatessens. There are many different typed of ways of starting a business. There are also many types of advantages and disadvantage. (webopedia.com). In today’s world, you will
A study has been conducted to find the reasoning behind the surprisingly abrupt success decrease. It shows that one of main contributing factor includes a new increase in competitors in the area, which may start to create a rivalry with the industry. Competitors can become a huge danger towards companies since this gives the customers more options when deciding which product to purchase. There have also been new entrants, who of which are creating new and different products that are now available to the customers. Customers are also being persuaded by the power of other companies. This is now becoming a very competitive market, which can have a great effect on the company’s success. Although this is just one factor that seems to be affecting sales, there seems to be more contr...
Nowadays, entrepreneurship becomes most popular career, where our government encourages our graduated student to involve in business so that unemployment will not happen in our country. Policymakers, academics, and researcher agree that entrepreneurship is a vital route to economic advancement for both developed and developing economics (Zelealem et al., 2004). Entrepreneurship has many types for example small business and others. Today small business, particularly the new ones, is the main vehicle for entrepreneurship, contributing not just to employment, social and political stability, but also to innovation and competitive power (Thurik & Wennekers, 2004).
Starting a small business is often one of the hardest things a person can do. Some people start a business out of pure fascination, or even as a hobby. Whether starting a business for personal reasons or simply the grandeur to make loads of money, everybody needs to have a plan. Starting a small business is no easy task and can take days if not months to prepare. The most important aspect to have is the tempura and heart to start a small business, as without passion, no business can succeed. One has to be his or her own boss, make dream, reality and be willing to market and sell a product. It takes a lot of discipline, long hours and hard work, something many do not have. However with the right willingness, passion and dedication a business can be the start of something big.
Throughout Europe, great attention has been paid to the small business area and to the contribution that entrepreneurial small businesses can bring beneficial to transforming the economy (EiM, 1994).The concept of entrepreneurship is often considered with new venture creation and small enterprise management, and the terms of owner-manager and self-employment (Gibb, 1996). While Kirby (2003) has argued that entrepreneurship is far broader than these concepts mentioned above. Not all owner-managers can be considered as entrepreneurs, nor are all small business entrepreneurial (Carland et al., 1984). Carland also has argued that entrepreneurial small business is aiming at profitability and growth, and the business is regarded to be innovative.
find it difficult to set up a business and make it a success. This is
Small businesses have a clear relationship with the economy in general, and if we take an example like the U.S. where over 86% of businesses ...