Module 01 Discussion - Entrepreneurial Failure According to the small business a

Question

Module 01 Discussion - Entrepreneurial Failure


According to the small business administration, failure rates of entrepreneurial ventures more than 4 years old is greater than 50%. Explain what you believe are three causes of business failure. Which cause do you believe is most common and why? What steps can an entrepreneur take to increase the chances of success?
Module 01 Discussion - Entrepreneurial Failure


According to the small business administration, failure rates of entrepreneurial ventures more than 4 years old is greater than 50%. Explain what you believe are three causes of business failure. Which cause do you believe is most common and why? What steps can an entrepreneur take to increase the chances of success?



According to the small business administration, failure rates of entrepreneurial ventures more than 4 years old is greater than 50%. Explain what you believe are three causes of business failure. Which cause do you believe is most common and why? What steps can an entrepreneur take to increase the chances of success?

Explanation / Answer

1.

Three causes of business failures

1. Objective and purpose:

- There is a possibility of failure when the entrepreneur is not clear on what is the main objective and purpose of the business.

- insufficient planning on how to move towards the organisations goals would also leads to failure

2. Analytics:

- data analytics plays a big role in setting up and succeeding in a business.

- when proper analysis on factors like return on investment, market and customer are not done then it leads to sure failure

3. Customer and client relationship:

- as always mentioned in marketing concepts, customers are king in any business.

- when not concentrating on the customer needs and requirements a business would always be a failure

2.

The most common one is Analytics:

- Business analytics, being the most popular concept in today's trend is the reason for success of any business.

- analytics is a process of interpreting and finding meaningful patterns in a set of data.

- analytics can be used to define, set processes and finally measure performance of any business

- but this is one big thing which is missed out by most of the entrepreneurs by not knowing the value it provides to a business.

3.

Steps to Increase the chances of success in business:

-An entrepreneur can increase the chances of success in business by having a proper business model in place.

- A business model is a process through which the entire structure and purpose of the business is defined and implemented as stated below:

- defining the mission and vision statement of an organisation and to have clarity on the same

- framing the organisation structure which suits the business - framing the cost structure

-framing production strategies

- framing marketing strategies

- finally deciding on selling strategies

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