Reasons for Small Business Failure

SMEs are considered to be the main force of the world. For example, in many European countries, SMEs are considered to play an important role in the success and prosperity of the whole country. Most people want to achieve ownership, independent interests and personal success, starting with small business. If properly planned, SMEs can prove to be very successful. Studies have shown that some SMEs will be closed or failed during the first few years of operation.

According to S of Clark, Puget Sound Business Journal. (1997), the list of reasons for small business failures seem long at first, but most of the reasons can be attributed to three important issues: financing, management, and marketing. However, here we will explain the problems that previous researchers in various economic disciplines and countries are considering more frequently. There are many studies trying to find out if there are obvious features distinguishing the owners of SMEs, but the general conclusion is that there is no simple model. Owner, and whether the business will succeed or fail

Research elements related to the success and failure of small industrial entrepreneurs (focusing on their education and training level)

Let's look at the most successful companies that start with some powerful and innovative ideas before examining the reasons for SME success or failure. If you start some small business in a normal way, you may be able to barely gain it. In order to bring your small business to the forefront, you must offer something new and innovative. (1) Gold c. Gillette: A traveling salesman learned that his razor became dull and could not shave his beard. Because he is not sharp, he began to think about a new safety razor as his razor is accustomed to cutting his skin. A new idea for making a two-bladed razor was born. There you can replace it with a disposable blade. Many engineers refused this idea, but he continued the experiment, and today Gillette has become a company with a billion dollars. He introduced cheap disposable blades that can be used for personal and safe shaving.