Module 01 Discussion - Entrepreneurial Failure Please respond to student\'s post

Question

Module 01 Discussion - Entrepreneurial Failure

Please respond to student's post!!!!!!

By. Mr. Harris

I believe the 3 cause of business failures are lack of money, lack of education, and lack of customer appeal.

I believe the most common of business failure is lack of money. I believe its lack of money because most entrepreneurs don't count on emergencies such as labor and equipment. When starting a business labor and equipment tend to run over and most entrepreneurs are not prepared and they tend to take out loans high in interest or take out a second mortgage on their home.

I believe the steps an entrepreneur can take to increase the chances of success are 1) Make sure that they have enough funds for the start of the business and enough for emergencies. 2) Make sure that they have knowledge of their business before they start investing money. 3) Make sure the company appeals to customers.

Explanation / Answer

It is rightly said, that the top three reasons for the business failure are lack of money, lack of education and lack of customer appeal towards the product or service that is being provided.

But apart from these three main things that are also other thing that lead to the business failure.

The management team have the education, but they lack the skill and experience to execute the managerial decisions. Even if money and customer appeal is present, lack of skill and experience, would definitely cause the business to fail.

Not having adequate knowledge regarding the competitors in the current market. In other words it could also be said as underestimating the competitors in the current market. The competitors would definitely take the business away.

Even if all the factors are absolutely fine and are in place, the general declining market in that particular industry would also make the business to fail abruptly.

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