Business failure among small-scale entrepreneurs

[Kadal Ijo]

Small businesses are easy to fail, very limited funding support makes the opportunity to fail is very large, moreover small businesses only rely on feeling and not good skills, just other skills and financial factors are the characters of small entrepreneurs who do not want to add abilities.

[erep]

Any business does really experience failures but we know that failures could really be having different extent on which there are some who could able to recover and there are some who do totally die.
It would really be just that normal that you would really be needing up on making adjustments for you to correct on what you had done wrong.Although there's really no assurance when it comes to success.
You wouldnt really be able to stop things whether it could really be the end of your business or you could really still able to recover it.Mistakes and errors are common
but as a business owner then you would really be striving your best on standing on your feet.

Some businesspeople will identify the issue and reevaluate to restore business conditions to normal mode, but that decision will not be passed easily until some companies decide to close because there is no other way to grow the business. But I suggest the best final decision is to fix the various weaknesses in the internal business and establish partnerships with other companies for mutual benefit, then the recovery of the company's graph will gradually improve in the next few months.

[Gyfts]

In my country a big number of startups got into existence as a result of some schemes initiated by the government. Later this turned to be mere schemes and the government failed to provide consistent support in all levels, particularly in finance. This have caused a big percentage of startups end and very few are sustaining. The governments have got big responsibility in the development of the people through entrepreneurship. Most of the time government work for the corporate that are once a strat-up.

Exactly. A business isn't a true business if it requires government subsidies in order to remain operational. I'm not oppose to government propping up businesses with subsidies if they meet the public need. A lot of farming operations receive government subsidies for the obvious reason it's within the public interest for there to be a surplus of food. More recently I'm seeing tech start ups in the green sector receive government loans/subsidies. These business wouldn't last a second without these low interest loans. And of course, when the business goes up in flames, the public is left with debt burden.

[BuNga_cute]

To become a successful entrepreneur, of course, requires a process and has failed a lot, the big entrepreneur we see today is successful when he tells it, he will say that he has experienced many failures and is almost desperate because of bankruptcy and so on, but with enthusiasm and learning from mistakes they can success.

Those who are successful now have failed in the past, but I don't think there is a need for too many failures, because when there are more failures in an entrepreneur, he will get worse and take longer to get back up. The success of an entrepreneur is also due to long hard work and never give up and what don't forget is his experience in the field he is in.
Because when he had failed once or twice in his attempts, the third time would definitely not fail again because he already knew where the fault lies in the past which caused him to fail.

Their is no successful business without failures, but as far as one is doing the right thing in business and putting good attention to the business it definitely be successful. Reasons why most businesses don't do well is because people fail to give attention to their business.
Failure in business will always take place but when one is comfortable with the falure and not trying to make some adjustment to correct certain mistakes that means the business won't survive.

It is true that the key to success in business is how we take lessons from every failure we experience in building a business. Because all
successful businesses always start from failure, because it is failure that usually teaches to be able to achieve success in business.
After we experience several failures, usually we will begin to realize how to build a good business. Therefore, people who never give up,
who can always rise from failure, usually that person in the future will become a successful entrepreneur.

So if we want to build a business but are afraid to fail, that means we don't have an entrepreneur mentality and are more suited to office jobs.
Because all the big companies in the world, usually they all fail first and they can fix every failure. That's what ultimately makes the business
bigger, because they know how to fix every failure that occurs. So when we experience failure when business, it's not the end of everything,
but indeed to be successful we do need to experience the process of how we can overcome every failure that occurs.

[Jatiluhung]

Small businesses are easy to fail, very limited funding support makes the opportunity to fail is very large, moreover small businesses only rely on feeling and not good skills, just other skills and financial factors are the characters of small entrepreneurs who do not want to add abilities.

a business built on a feeling is a speculative business. then it is true that such a business is very prone to failure. because the right business is a business that has been prepared and planned carefully. both in terms of capital funds and also capital expertise or knowledge or skills. even have to have gone through research first. and indeed sometimes with limited capital funds can make small businesses prone to failure. because they do not have spare funds in case of losses. even though an important element in a business is that there is always a reserve fund. Even careful planning always requires a backup plan. because a business or business sometimes always finds things that we did not expect before.

[Bazzu]

Please note that the business world is a world full of challenges, sometimes bringing in troublesome competitors.
This is where our expertise is tested in business.

but the cause of the failure of a business is sometimes not because our business is bad or our marketing is not good. but the overall economic condition of the economy can be the real obstacle. when people's purchasing power decreases. and the price of goods continues to soar. At such times it is very difficult to maintain a business. it is not surprising that as a result of an economic crisis, many shops and companies were able to close, even factories that had been around for a long time had closed because they were unable to pay employee salaries due to the products produced there had been a decline in interest in the market so that they were not selling well.
There are many factors that can make a business fail. both internal and external factors.

usually to maintain a business when we have many employees and at the same time income decreases. then the reduction of employees is the solution. despite the fact that the effectiveness is still 50:50 but it can minimize expenses. reduction of employees and reduction of production if it is a factory.
and today the global economic conditions are really worrying so that it is increasingly difficult for small businesses to survive.

Yes, indeed because now business competition is getting stronger, so small entrepreneurs will find it increasingly difficult to grow, because they lose competition with big companies, such as starting from food products and so on. and usually lose competitiveness in terms of price,, usually if large companies offer very cheap prices to the public,, because they have large capital,, so small entrepreneurs, with small capital will surely lose to big companies. but of course not all small entrepreneurs go bankrupt because many companies that were originally small turned into big companies.

[South Park]

In my country a big number of startups got into existence as a result of some schemes initiated by the government. Later this turned to be mere schemes and the government failed to provide consistent support in all levels, particularly in finance. This have caused a big percentage of startups end and very few are sustaining. The governments have got big responsibility in the development of the people through entrepreneurship. Most of the time government work for the corporate that are once a strat-up.

Exactly. A business isn't a true business if it requires government subsidies in order to remain operational. I'm not oppose to government propping up businesses with subsidies if they meet the public need. A lot of farming operations receive government subsidies for the obvious reason it's within the public interest for there to be a surplus of food. More recently I'm seeing tech start ups in the green sector receive government loans/subsidies. These business wouldn't last a second without these low interest loans. And of course, when the business goes up in flames, the public is left with debt burden.

Subsidies are fine as long as they are given to a sector of the economy which is solid and not speculative on its nature, and a clear example of this as you mention is the food industry, as everyone needs food in order to survive and the more food we have the cheaper it is and it becomes affordable for everyone regardless of social class, and while I think we all recognize the need to have greener sources of energy, at the same time we also recognize the technology is not there yet and that fossil fuels are the more efficient way to produce energy, so if anything I will prefer those subsidies to go towards creating a more efficient engine or something like that.

[rby]

Apart from the above-mentioned factors, there are some other factors that could lead to business failure, among these factors are ;
1. little or no knowledge of the business owner about the business. When you don't know how the business is run , yoy don't know the secret of the business and you don't hire the right people to run the business there is every possibility that the business will fail prematurely.

2. Another factor is unfavorable government policies, and also some of the environmental factors that were not considered during the business research stage. For instance, establishing a business in a flood place during the winter coming to meet the reality during the summer.

[Fortify]

Any  business can fail if not well manage. It is one thing to start a business and it another thing for the your business to stand firm for life. These are examples of Nigerian Businesses that Failed Within 5 Years:

Reason why businesses may fail
👉 Poor Customer Care/Support
Customers need proper attention for a business to survive. Without them, your product will fail to exist. When customers are not well treated or appreciated, they often become dissatisfied, leave bad reviews and patronize others.

👉 Mismanagement of Funds
Some small businesses fail because the owners mismanaged the business funds and there was no accountability.

👉 Inadequate Financing
Huge number of entrepreneurs make a common mistake of starting a business with no adequate operating funds. Most small business owner start their business without having enough that can finance the budget of their business. Some start the business with loan with heavy interested.

👉 Poor Business Management
The management play a key role to sustain a business. It comprises of activities such as planning, organizing, staffing, directing, motivating, controlling, co-coordinating and communicating. When a business is poorly managed, its death is imminent. Management

👉 Inability to Communicate Value
Communication is highly important in businesses. This is the only language your customers here. Some small businesses fail because of their inability to clearly define their value propositions — that is, they fail to understand and communicate their products or services to consumers effectively.

👉 Wrong Expectations
Some startup and small business owners expect money to start rolling into their business account immediately with doing little or nothing.
The idea of starting a business with the wrong expectations and impatience has made many businesses to collapse within a short period of time.

👉 No Planning
Most small scale businesses start the business without a concrete plan. They rush into business because they see people make ways from it. To start a business, one need to make proper findings about the business. Failure to plan may lead to the downfall of the business.

👉 Lack of Focus
Investing in many things almost at the same time is not healthy fora business. Engaging in so much things at a time may make them run out of cash. This on the long run will affect the financial aspect of the initial business. At the long run, they end up closing down the business.

CONCLUSION
Establishing a strong and firm business doesn't come easy. It involves patient, time, passion and hardworking. Young entrepreneurs should try to learn from failed businesses and guide themselves with successful businesses.

Many people will not necessarily be lucky enough to experiment with different business ideas because they get trapped by the complexities of day to day life or simply do not have the resources to dedicate to it. The internet has been a great equalizer for people across the world and opened up a whole realm of possibilities for trying new things. The most important thing that an entrepreneur is likely to pick up is failure and perseverance, which means testing lots of different things until you find a profitable recipe for yourself. It also teaches you constant adaptability as the world is often changing and you will need to change along with it.

[yudi09]

CONCLUSION
Establishing a strong and firm business doesn't come easy. It involves patient, time, passion and hardworking. Young entrepreneurs should try to learn from failed businesses and guide themselves with successful businesses.

Business is an inherent job with two sides, namely losses and profits. Like black eyes with white eyes. That's the parable.
There are two types of business people that I know so far. The first is business because of talent and the second is because of heredity.
Ranging from mismanagement of funds, planning, poor management, inadequate financing to false expectations, for me it's just a theory. All of that is summed up in four words namely POAC, which is easy to learn but difficult to practice.

Want to be successful, depends on each of us. Not just in business.

[Eternad]

Starting a business has its own risks too, because you are investing into something that has still uncertain future. That is why it takes a knowledgeable and business minded individual to build and start a business as he has the potentials to grow and prosper what he has started. If you are seeing your business is not developing, then make some more innovations and change your market strategies that will work on the customers. And if you’re seeing it’s already growing, just continue your marketing techniques and even improve it for more positive achievements.

There should be a continuous plan for improvement as well knowing what the market trends. It's not always the same there will be time you will sell alot and days with low sale , so identify how will you manahe the expenses with these 2 scenarios. Keep track of all the expenses,sales as well things you do for business to identify whether your right track or need a change plan.

[_BlackStar]

CONCLUSION
Establishing a strong and firm business doesn't come easy. It involves patient, time, passion and hardworking. Young entrepreneurs should try to learn from failed businesses and guide themselves with successful businesses.

Don't forget that you also need the support of others to build your business and support it to succeed.

Starting small, will become big if managed properly. A business will develop and advance to compete in the market if the business is supported by many things. You can't just rely on hard work and patience to keep your business competitive without adequate financial backing. I think good capital is the most needed support besides working hard for it. Nothing is easy, hhmm right.

[Cookdata]

To become a successful entrepreneur, of course, requires a process and has failed a lot, the big entrepreneur we see today is successful when he tells it, he will say that he has experienced many failures and is almost desperate because of bankruptcy and so on, but with enthusiasm and learning from mistakes they can success.

Those who are successful now have failed in the past, but I don't think there is a need for too many failures, because when there are more failures in an entrepreneur, he will get worse and take longer to get back up. The success of an entrepreneur is also due to long hard work and never give up and what don't forget is his experience in the field he is in.
Because when he had failed once or twice in his attempts, the third time would definitely not fail again because he already knew where the fault lies in the past which caused him to fail.

You can still work your ass up but you fail as an entrepreneur! Do you know what kills any business faster than others, it is the government and policy. I have seen so many micro, small and medium enterprises get shut down due to government change in their policy, it is not favouring business people and they are also not helping them, I'm even surprised that there is a fund allocated to support these MSME and the rate at which they are all closing down seem to be unappealing.

Among the top business listed by OP, the Gomyway reasons mentioned may not be the main reason why it was shut down, the government could also be among them because a similar business like Gokada has been shut down in the country and even OPay that are into transportation, and what pains me the most is that they don't take quick decisions on their launch, it is always when it has become successful.

[Dickiy]

CONCLUSION
Establishing a strong and firm business doesn't come easy. It involves patient, time, passion and hardworking. Young entrepreneurs should try to learn from failed businesses and guide themselves with successful businesses.

Don't forget that you also need the support of others to build your business and support it to succeed.

Starting small, will become big if managed properly. A business will develop and advance to compete in the market if the business is supported by many things. You can't just rely on hard work and patience to keep your business competitive without adequate financial backing. I think good capital is the most needed support besides working hard for it. Nothing is easy, hhmm right.

Do most entrepreneurs always think about where to find capital? Thinking like that is a very fatal thought if done by a novice businessman, in fact in the field we can apply for loans from friends, family, and even banks. Healthy? Maybe you often read or hear why entrepreneurs or rich people always owe a lot to the bank.
the most important thing in my opinion is the mindset of managing money from time to time to keep your financial turnover.
no matter how much money you put into your business if you can't manage it, it will be like a plane crash.

[Quidat]

CONCLUSION
Establishing a strong and firm business doesn't come easy. It involves patient, time, passion and hardworking. Young entrepreneurs should try to learn from failed businesses and guide themselves with successful businesses.

Don't forget that you also need the support of others to build your business and support it to succeed.

Starting small, will become big if managed properly. A business will develop and advance to compete in the market if the business is supported by many things. You can't just rely on hard work and patience to keep your business competitive without adequate financial backing. I think good capital is the most needed support besides working hard for it. Nothing is easy, hhmm right.

Do most entrepreneurs always think about where to find capital? Thinking like that is a very fatal thought if done by a novice businessman, in fact in the field we can apply for loans from friends, family, and even banks. Healthy? Maybe you often read or hear why entrepreneurs or rich people always owe a lot to the bank.
the most important thing in my opinion is the mindset of managing money from time to time to keep your financial turnover.
no matter how much money you put into your business if you can't manage it, it will be like a plane crash.

one of the reasons small business fail is that they don't put the effort in the right way
Sometime the owner of the small business are struggling too and the are unable to realize the fact that they are losing business in the struggle to survive their small dream

Big business do start on being small but it is really just it did turn out that there are lots of people had seen their relevance and demand which ends up on being big in the years had passed.
It is really just on what kind of business you are building on and on what are the things that you are offering.Sometimes it does really require up some luck for you to succeed on any
venture.Not everything is guaranteed on success just because you had done everything.It will always vary on the demand and on how the community or people
would be seeing the relevance of your business.If they do saw it to be useful then its good but if its not then you would definitely fail.

[CageMabok]

As an entrepreneur will certainly pass many failures, successful people certainly experience more failures because they often try, but they can rise because of the positive mindset they always guard, they assume that failure is a spice to be successful.

Sometimes some people also misinterpret failure as a spice to be successful. Because there are so many people who when they fail several times have to build everything from scratch again. Even though from the several failures that have been experienced, it is clear that this can be a very valuable experience and lesson for someone who wants to rebuild his business to become better and more advanced.

[bitgolden]

It is understandable to fail when you are trying to build a new startup. I personally tried a few myself, and spend a useless amount of time and money on them too, and never took off, it didn't even reach the levels of the companies OP talked about, all of them failed to take off to a point, just one of them made me a decent chunk of money back in 2017 bull period, and I was happy to sell it off and it crashed after I sold as well due to bear market of 2018 as well so I am glad I sold it, but all the other times I tried it failed miserably.

This is why I understand people who try to build something and fail, it's not an easy task at all, it is definitely very difficult.

[DrBeer]

It is true that maintaining a business isn't easy and that's why a business that's already seeing its peak should maintain its consistency. That's all that matters in most businesses because even if you're the best right now.

But, you're not consistent in what you do like marketing, customer support and innovation then you're going to be the last someday if you're not able to maintain that. Especially for these businesses that requires continuous upgrade and innovation, they'll be left behind if they don't accept that fact.

Nokia is a testament to that, a corporation that has always been a leader in phones has been killed by competitors because of its refusal to innovate. In fact, maintaining a business is not simple, it includes hundreds of different factors, not only capital management, planning, poor customer care support...Nowadays, every field will have extremely fierce competition, so opening a company or business is simple but maintaining it somehow is the problem.

There are many people who always say that there is no fairness in business when the director is paid dozens of times more than the workers. But we can see that to run and find a way to survive for a business is an extremely difficult thing, not everyone has the courage to do it.

The history of the collapse of Nokia is somewhat different. I will not now retell "the last years of the life of a dying patient", but I will suggest that you familiarize yourself with this period, familiarize yourself with the "transformation in Nokia" arranged by Stephen Elop. I also highly recommend reading The Impossible Success, the autobiography of Jorma Ollila, the former Nokia CEO who led the company to the height of fame we all know or have heard of.
PS. Ollila joined Nokia in 1985 and soon became Vice President of Finance and then CEO of Nokia. He held the high position for more than a decade, building Nokia into the world's largest smartphone maker.

[Gyfts]

In my country a big number of startups got into existence as a result of some schemes initiated by the government. Later this turned to be mere schemes and the government failed to provide consistent support in all levels, particularly in finance. This have caused a big percentage of startups end and very few are sustaining. The governments have got big responsibility in the development of the people through entrepreneurship. Most of the time government work for the corporate that are once a strat-up.

Exactly. A business isn't a true business if it requires government subsidies in order to remain operational. I'm not oppose to government propping up businesses with subsidies if they meet the public need. A lot of farming operations receive government subsidies for the obvious reason it's within the public interest for there to be a surplus of food. More recently I'm seeing tech start ups in the green sector receive government loans/subsidies. These business wouldn't last a second without these low interest loans. And of course, when the business goes up in flames, the public is left with debt burden.

Subsidies are fine as long as they are given to a sector of the economy which is solid and not speculative on its nature, and a clear example of this as you mention is the food industry, as everyone needs food in order to survive and the more food we have the cheaper it is and it becomes affordable for everyone regardless of social class, and while I think we all recognize the need to have greener sources of energy, at the same time we also recognize the technology is not there yet and that fossil fuels are the more efficient way to produce energy, so if anything I will prefer those subsidies to go towards creating a more efficient engine or something like that.

I disagree about providing subsidies for more efficient forms of energy (or a more efficient engine, for that matter).

The purpose for a subsidy is if the assistance of the person or enterprise benefits the public good in some fashion, and if the person/entity is in specific need of financial assistance. The energy companies are sitting on record amounts of cash according to some media reports. That's fine, I don't attribute it to greed, but rather operating a successful business. It's within these energy companies to invest in the R&D for alternative energy sources or taking the existing products they have and making them more energy efficient. Why? Innovation drives consumers to be gravitated towards their products, so the incentive already exists.

When companies get free government money, it drives complacency. If it turns out that for some reason, market forces do not meet the public's best interest, then fine, I'm good with subsidies for whatever industry.

[kro55]

It is understandable to fail when you are trying to build a new startup. I personally tried a few myself, and spend a useless amount of time and money on them too, and never took off, it didn't even reach the levels of the companies OP talked about, all of them failed to take off to a point, just one of them made me a decent chunk of money back in 2017 bull period, and I was happy to sell it off and it crashed after I sold as well due to bear market of 2018 as well so I am glad I sold it, but all the other times I tried it failed miserably.

This is why I understand people who try to build something and fail, it's not an easy task at all, it is definitely very difficult.

To talk about building a business and maintaining it is an extremely difficult thing, not everyone can afford to do it, whether small or large scale. I also failed once with my business so I know what it feels like, but I find it not a waste of my money and time, I think neither should you, although the feeling of losing a large amount of money is not pleasant at all. Thanks to that failure, we felt weak, and not as good as we imagined, from those failures, I have learned lessons that no one or school can teach me. Although I have no intention of reopening my business because I currently have a fairly stable freelance job, those lessons can be applied a lot in life, not just at work.