• Tuesday, 24 December 2024
Not witchcraft: 5 reasons small businesses fail

Not witchcraft: 5 reasons small businesses fail

Despite the increasing number of job seekers chasing too few jobs, there’s still a marked reluctance by many to start businesses. The most often cited reason is the lack of capital but there’s more to it than that.

Indeed many businesses have succeeded despite starting with almost no money. Lots of people say they have neither the aptitude nor the skill for entrepreneurship thus excusing themselves from starting a business. While aptitude and experience are necessary for success, these can be learnt. The only way to get experience at something is by doing it, isn't it?

Perhaps the main cause of reluctance is the fear of failure. Starting and running a business carries with it a risk of failure. Everyone knows somebody who failed spectacularly at business. The statistics are not encouraging either. Generally, only one-third of new businesses will survive beyond their second anniversary. The reasons vary across but several common strands can be seen.

1. LACK OF EXPERIENCE: Dr GSK Velu, a serial entrepreneur in India, says many new entrants in business lack the necessary skills to effectively manage all aspects of their business, from finance and operations to human resources and customer service. “It is essential to develop a strong management team or seek out the help of outside consultants or advisers,” Velu cautions. You should also invest in ongoing training to stay up-to-date on the latest business trends and best practices.

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