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.
Topic: Business failure among small-scale entrepreneurs - page 12. (Read 3236 times)
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.
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.
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.
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.
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.
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.
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.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.
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.
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.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.
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.
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.
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.
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. 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.
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.
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. 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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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. 
Quote
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.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.
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.
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.
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
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.
Quote
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.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.
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.
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.
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.
Quote
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.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.
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.
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. Jump to: