Business failure among small-scale entrepreneurs

[Ahli38]

Actually the main capital in building a business itself is a skill and experience that we already have in the business field that will build our business.
because experience is needed so that we can minimize failure before we go any further. like if we want to build a culinary business such as a restaurant or cafe. then we should look for an experience first by working as an employee in one of the restaurants and cafes. we worked there while studying the business system. so that when the experience we get is judged to be sufficient. then we can venture to build our own restaurant business. but of course this only applies to people who already have capital money. because still even though our experience is enough but if we do not have enough capital money then we will not be able to start a business.

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[1714465323]

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[Kelvinid]

Actually the main capital in building a business itself is a skill and experience that we already have in the business field that will build our business.
because experience is needed so that we can minimize failure before we go any further. like if we want to build a culinary business such as a restaurant or cafe. then we should look for an experience first by working as an employee in one of the restaurants and cafes. we worked there while studying the business system. so that when the experience we get is judged to be sufficient. then we can venture to build our own restaurant business. but of course this only applies to people who already have capital money. because still even though our experience is enough but if we do not have enough capital money then we will not be able to start a business.

Skill and experience are just useless if you don't have enough money to start a business. Because some have that stuff already but unfortunately, they are just sitting and drinking beers as they can't pursue their goal due to financial capabilities. Success in business doesn't just rely on our skill and knowledge but on our mindset as well on how to drive and run the business. Many entrepreneurs got failed because lack of managing skills which I see is also a vital tool in this field.

[mm2543363580]

Actually the main capital in building a business itself is a skill and experience that we already have in the business field that will build our business.
because experience is needed so that we can minimize failure before we go any further. like if we want to build a culinary business such as a restaurant or cafe. then we should look for an experience first by working as an employee in one of the restaurants and cafes. we worked there while studying the business system. so that when the experience we get is judged to be sufficient. then we can venture to build our own restaurant business. but of course this only applies to people who already have capital money. because still even though our experience is enough but if we do not have enough capital money then we will not be able to start a business.

Skill and experience are just useless if you don't have enough money to start a business. Because some have that stuff already but unfortunately, they are just sitting and drinking beers as they can't pursue their goal due to financial capabilities. Success in business doesn't just rely on our skill and knowledge but on our mindset as well on how to drive and run the business. Many entrepreneurs got failed because lack of managing skills which I see is also a vital tool in this field.

there are a few skill which doesn't need much investment
For example - photographers don't need much investment they would need to have good gadgets and they can rock the floor. Graphic designer would only need a computer and nothing more.

[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.

Variety is the spice of life and there is always survival of the fittest --Nokia didn't go with the flow.
they were the best one years ago but the company didn't realized the fact that the synonym of technology is change - Nokia learnt it heard way!

I agree with you and disagree
I use a "hackneyed phrase", but well applicable to the real situation with Nokia - "this is a bit not the case"
In what I agree - yes, Nokia ignored Android, focusing on Symbian. By the way, Symbian is a very good system, the first in which real multitasking appeared, good stability, not very demanding on resources, and not bad at all ... for ITS TIME. But they did not appreciate the "risks" of Android's luck.
Although even Steve Jobs, who I respect, said "... that he was ready to spend a lot of money and effort to destroy the Android operating system." True, this was presented under the sauce "Google stole my ideas", but I think this is some kind of lie, because to. Steve was well aware that this is a real competitor to iOS. But that's a completely different story.....
Back to Nokia! At the same time, Nokia still had a good trump card - MeeGo, but he was deliberately "killed". I’m not ready to say that MeeGo would kill iOS or Android, but MeeGo would definitely get its niche! And instead of objectively assessing and ACCEPTING the trend set by Android, developing MeeGo in parallel, they not only did not adapt, but also KILLED Symbian and MeeGo by changing the head, and began to poke Windows Phone everywhere, which was really not competitive and unpromising, at least on the basis of that this system was aimed primarily at the corporate sector.

[South Park]

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.

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.

We must also recognize that to create a successful business right now is very hard since inflation is out of control, so many people which perhaps could be interested in doing something like this are not creating new businesses and they are not generating economic growth or jobs, this is slowing down the economy and making the crisis even worse, but I understand them as it is clear that if things get worse, and all the indicators seem to point to this possibility, then most likely they will lose money.

[milewilda]

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.

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.

We must also recognize that to create a successful business right now is very hard since inflation is out of control, so many people which perhaps could be interested in doing something like this are not creating new businesses and they are not generating economic growth or jobs, this is slowing down the economy and making the crisis even worse, but I understand them as it is clear that if things get worse, and all the indicators seem to point to this possibility, then most likely they will lose money.

When you do build a business then you shouldnt really make yourself be that positive or believing that it would really be definitely succeed out because chance or risk of failure do always lying on side.
Neither succeed or fail, there's only two outcomes which the business of yours would be going thats why its better not to expect because it would really frustrate you out if you do see different results.
Nothing is assured on business or investment world because it would all come or depends on the demand as always.Neither small scale or huge scale there wont be no exemptions
for this one.

[Vinaa77]

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:
3. OLX

OLX is a classified advertising platform launched in 2012. It allows individuals to buy, sell, and trade used products and services using their phones or the internet. Naspers, a South African media behemoth, owns the startup. However, the startup was shut down in 2018 due to challenging operating conditions.

Maybe we can not say failed, because until now it is still running. Like OLX. OLX is still officially trading goods, both new and used. We can sell goods by meeting directly with buyers. However these companies operate independently in each country. Although in one country it is no longer used, in other countries it runs smoothly. I think it depends on the competition within a country.

[panganib999]

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.

To this you are right, but more than learning from failed businesses and enterprises, Aspiring entrepreneurs should take a page out of the book of successful projects and businesses, their trade secrets, behaviors and practices that they are actively using and abusing to ensure success. It also must be noted that it's not enough that you are industrious, you must also be intelligent and wise in making decisions especially ones that will affect the scalability of your project.

Maybe we can not say failed, because until now it is still running. Like OLX. OLX is still officially trading goods, both new and used. We can sell goods by meeting directly with buyers. However these companies operate independently in each country. Although in one country it is no longer used, in other countries it runs smoothly. I think it depends on the competition within a country.

True, OLX is pretty much still up and running although the company is as far as I know already absorbed by a much larger project that dabbles in the same sector OLX used to be in. They also underwent a bit of a rebranding if I'm not mistaken. Although when summed up, OP's statement regarding businesses should still hold true.

[burugcrypto]

I would like to add following things to the list

1 -  Wrong timing of the Product:
 Even though your product is excellent, sometimes business fails because market is not ready to buy or understand your product

2 - Poor Marketing:
Marketing is crucial for any business. If you do marketing at wrong section of people, your marketing fails and so your business.

[$anounimus$]

The most basic factor that triggers business failure among small entrepreneurs is their inability to understand the business environment or lack of enthusiasm for doing business.

The main risk lies in the company's ability to survive when external pressures are applied eg location selection, insufficient capital investment, or asset appreciation. This is because small businesses are generally founded by individual businesses, for example at home or otherwise.

The key to success in entrepreneurship does not entirely lie in one's business skills but also requires a positive attitude towards life and effective planning in maintaining business facilities where skills, solid market strategies, having good/creative ideas, and innovation in operating the business to keep it running.

[AicecreaME]

The business world has become very competitive and in order to remain alive in the business for a long time, a business owner needs to be very proficient in many things, hard working, smart enough, financial capable and always keep his/her eyes on the customers.

There are two very important elements that are crucial in running successfully any business. First is the strong business idea and the second one is all about marketing and management skills to be able to keep customers/clients interested in your business. If you are thinking of starting a business, it is good to have a strong business plan that includes all the necessary aspects of your business such as: market research, competition analysis, finances, marketing plan etc. To increase the chances of your business succeeding, you need to ensure that you are constantly updated with current business trends, educated enough to know all the possible market shifts and you must be able to make most informed decisions.

I agree.

Running a business is also like growing yourself, you need to grow by accepting new ideas, accepting other's opinion, and accepting the fact that you need to continue improving your business in order to make it alive and competitive to other businesses. It's all about getting out of your comfort zone, thinking out of the box, because a business that has no goals will never be a successful one.

[livingfree]

I agree.

Running a business is also like growing yourself, you need to grow by accepting new ideas, accepting other's opinion, and accepting the fact that you need to continue improving your business in order to make it alive and competitive to other businesses. It's all about getting out of your comfort zone, thinking out of the box, because a business that has no goals will never be a successful one.

That's right in business. There's an unstoppable growth and it's limitless if you're willing and open to hear more idea on how to make it a better running business.

You just have to listen to some ideas if there are some experienced business owners giving you advice. Don't get heated if a more experienced person giving tips and advices, just take them and it's up to you if you will apply it after listening to them.

You have to keep on learning because the market is also changing whether you're the best business right now, time will come that people and other entrepreneurs will copy your idea and will be your rival.

[Jatiluhung]

The most basic factor that triggers business failure among small entrepreneurs is their inability to understand the business environment or lack of enthusiasm for doing business.

The main risk lies in the company's ability to survive when external pressures are applied eg location selection, insufficient capital investment, or asset appreciation. This is because small businesses are generally founded by individual businesses, for example at home or otherwise.

The key to success in entrepreneurship does not entirely lie in one's business skills but also requires a positive attitude towards life and effective planning in maintaining business facilities where skills, solid market strategies, having good/creative ideas, and innovation in operating the business to keep it running.

Currently, the fierce competition in the business world is also what makes small businesses prone to failure. because of the many competitors in the business, forcing business people to always be able to innovate and adapt quickly. and business people who adapt slowly, they are usually the first to fail. so to be able to survive in business today, of course what is needed is to continue to innovate, adapt to the environment, be it market trends or the like. skill and careful planning are also definitely a must-have. and many other factors.

[puyunghay]

Business competition is something that must be faced in carrying out a business field. so in my opinion one of the strategies that must be done is to do a fairly large promotion, especially in the first 5 years of running a business.

[$anounimus$]

The most basic factor that triggers business failure among small entrepreneurs is their inability to understand the business environment or lack of enthusiasm for doing business.

The main risk lies in the company's ability to survive when external pressures are applied eg location selection, insufficient capital investment, or asset appreciation. This is because small businesses are generally founded by individual businesses, for example at home or otherwise.

The key to success in entrepreneurship does not entirely lie in one's business skills but also requires a positive attitude towards life and effective planning in maintaining business facilities where skills, solid market strategies, having good/creative ideas, and innovation in operating the business to keep it running.

Currently, the fierce competition in the business world is also what makes small businesses prone to failure. because of the many competitors in the business, forcing business people to always be able to innovate and adapt quickly. and business people who adapt slowly, they are usually the first to fail. so to be able to survive in business today, of course what is needed is to continue to innovate, adapt to the environment, be it market trends or the like. skill and careful planning are also definitely a must-have. and many other factors.

Yes, at present, let alone small businesses, many large businesses that have been founded and managed by entrepreneurs also have no experience in the business. This can be seen for example in the technology industry, where many tech giants are founded by people who have no technical knowledge of the topic.

One of the things I believe is critical to a successful business is a passion for the industry we are trying to explore. All of this shows how learning outside of our sector can be applied within it as an entrepreneur.

[Rockstarguy]

Small businesses are certainly very easy to fail because most small businesses do not get attention from the government and to find additional capital are very difficult, small businesses are difficult to compete with large businesses because production costs are very high and very limited finances.

Are you aware that big businesses started small, everything started in a small way.  When a business is small it is important to give that business every attention that will be good for the business to grow. One of the serious problems that usually affect small businesses is when their is no much fund needed for the business,  it is not as if it is too hard to make a small business grow. Government don't need to fund a small business to grow.  I have seen lot of business without support of Government are doing well.

[Hamphser]

Small businesses are certainly very easy to fail because most small businesses do not get attention from the government and to find additional capital are very difficult, small businesses are difficult to compete with large businesses because production costs are very high and very limited finances.

Are you aware that big businesses started small, everything started in a small way.  When a business is small it is important to give that business every attention that will be good for the business to grow. One of the serious problems that usually affect small businesses is when their is no much fund needed for the business,  it is not as if it is too hard to make a small business grow. Government don't need to fund a small business to grow.  I have seen lot of business without support of Government are doing well.

Everything starts on being small when you do start up a business which success is never been a guarantee which it would really be just normal that you would really be facing up lots of challenges along the way.You would definitely need lots of things to be adjusted and be implied for the better good of the business.
 
Of course you would really be expecting that there are business owners will really be competitive and trying to place themselves on the top which it would result whether your business would succeed or not.

Failure is always been part but trying out your best first and never give up so easily.Each business does have its own challenges which it would really be that normal.

[batang_bitcoin]

Small businesses are certainly very easy to fail because most small businesses do not get attention from the government and to find additional capital are very difficult, small businesses are difficult to compete with large businesses because production costs are very high and very limited finances.

There's a help if there is a support from the government but each country has a different policy in terms of support to the small businessmen and entrepreneurs. I think, before you start, you have to think that there's no one that will support you and even your family, that's usually how business goes. Do not expect any help from any of your relatives even the government. You've started it all and you must do all the grit and hardwork for you to thrive with your business. But I wouldn't say that all of them are bound for failure and they're easy to be like that. Others are just starting small and when they tick on the right system and operation, they're also quick in expanding and growing.

[burugcrypto]

I would like to add following things to the list

1 -  Wrong timing of the Product:
 Even though your product is excellent, sometimes business fails because market is not ready to buy or understand your product

2 - Poor Marketing:
Marketing is crucial for any business. If you do marketing at wrong section of people, your marketing fails and so your business.

And there is one other factor - which is the external factor
Like the product were released at good time and marketing too was good but COVID damaged everything. Sometime we can't do anything.. When the big businesses were falling mask making companies flourish like crazy. This is called. Luck

True. Natural disasters are not in our control. And also Luck.

[Doan9269]

The most basic factor that triggers business failure among small entrepreneurs is their inability to understand the business environment or lack of enthusiasm for doing business.

You're right, alot want to engage in business which they never have an experience in amd are not making moves to develop themselves on this weakness they have, business is only sern afar before a start, till you fully launched into it before you realize what's involve and this has been the common reason you see some ventures on a closedown mode after a successful launching, they didn't gibe a proper administration to it and it ended like that.

The main risk lies in the company's ability to survive when external pressures are applied eg location selection, insufficient capital investment, or asset appreciation. This is because small businesses are generally founded by individual businesses, for example at home or otherwise.

There must be a rescue techniques aropted for a business in case of challenges, this will serves as miscellaneous to be use to cover up for any challenge during the run of a business.