Business failure among small-scale entrepreneurs - page 15.

BRINIRHA

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Quote from: Kakmakr on September 30, 2022, 12:55:21 AM

One of the major reasons why small-scale entrepreneurs fail is this :

They do not listen and adapt to the changing needs of their customers. Around 60 percent of new restaurants fail within the first year and nearly 80 percent start to fail before their fifth anniversary.

Why does that happen? .....well, people will eat their favorite food for a while and then they will start looking for something different. We humans are wired to look for variety ....not to stay with one thing for the rest of our lives... diets and preferences change over time and businesses should understand that and change with that over time. Wink

Humans tend to get bored easily. and always looking for new things. so that many restaurants are closed due to not being able to adapt to the needs of their customers. and some restaurants stick to their recipes so much that their menus become monotonous with no changes or variations in them. whereas in a business we must always pay attention to what things people like at that time. follow a trend or create a trend. by creating a new menu for example. people are always curious about new things. but most of the small businesses that go bankrupt are those who are too monotonous and slow to follow the trends. the courage to make things new and strange is indispensable in maintaining a business. that's where many say that successful people tend to be more daring in taking risks and of course with careful calculations and analysis.

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Quote from: TravelMug on September 29, 2022, 01:28:35 AM

Quote from: ethereumhunter on September 29, 2022, 12:29:25 AM

Perhaps of the many young entrepreneurs, only a few can really successfully run their businesses. They are the ones who can learn from anywhere to gain more knowledge and also often try trial and error in business so they can find the right formula for them. Each entrepreneur must have their own formula so that their business can run well and if they get a formula from someone else on how to run their business, they have to adapt it to their circumstances. It will be better because they can find what works for them and help them achieve success.

Yes, each one of us who venture to become a entrepreneurship, might not succeed in the long run. There are a lot of factors and sacrifice that we need to do and there is no formula that really fits everyone to be successful. So it will be a trial and error in the initial and this is where it going to make or break new and young businessman. Hopefully, they will adapt, and only handful can achieved success because it is very difficult if you don't have the expertise or no one is mentoring you. Going to be a struggle, but for those who succeed, it will be worth.

One of the hardest parts that I learned while trying to be one was the fact that it takes so much of your time that you wouldn't even understand. I mean working is always hard of course, there isn't any jobs that is easy and entertaining so much that you would want to do it for free, all jobs are hard and that is why people pay you for it.

But having your own company means that you are going to work harder than anyone else, you are not going to just work at office and come home and forget about it, you would have to actually end up with something on your mind at all times. So, basically you are working 24 hours, even in your dreams, it’s really hard to live like that.

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One of the major reasons why small-scale entrepreneurs fail is this :

They do not listen and adapt to the changing needs of their customers. Around 60 percent of new restaurants fail within the first year and nearly 80 percent start to fail before their fifth anniversary.

Why does that happen? .....well, people will eat their favorite food for a while and then they will start looking for something different. We humans are wired to look for variety ....not to stay with one thing for the rest of our lives... diets and preferences change over time and businesses should understand that and change with that over time. Wink

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Quote from: TravelMug on September 29, 2022, 01:28:35 AM

Quote from: ethereumhunter on September 29, 2022, 12:29:25 AM

Perhaps of the many young entrepreneurs, only a few can really successfully run their businesses. They are the ones who can learn from anywhere to gain more knowledge and also often try trial and error in business so they can find the right formula for them. Each entrepreneur must have their own formula so that their business can run well and if they get a formula from someone else on how to run their business, they have to adapt it to their circumstances. It will be better because they can find what works for them and help them achieve success.

Yes, each one of us who venture to become a entrepreneurship, might not succeed in the long run. There are a lot of factors and sacrifice that we need to do and there is no formula that really fits everyone to be successful. So it will be a trial and error in the initial and this is where it going to make or break new and young businessman. Hopefully, they will adapt, and only handful can achieved success because it is very difficult if you don't have the expertise or no one is mentoring you. Going to be a struggle, but for those who succeed, it will be worth.

Only those who are really steadfast in running entrepreneurship and keep trying can succeed in the future, while others are still looking for what business is right for them. Failure is a common thing that new and old entrepreneurs must experience, but it should be a spirit to keep getting up to find the right formula to turn from failure to success. If they could really do well, they would be able to see the results later and would smile with satisfaction.

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Quote from: bitzizzix on September 29, 2022, 12:03:43 PM

There are many reasons why small businesses fail, but some of the most common include inadequate planning, poor management, insufficient funding, and a market that is too competitive, and not daring to play hard.
and often small businesses do not have the resources or expertise to compete with large companies, and this can result in them not having enough customers, leading to financial problems and ultimately failure.

This is what should be a reference because there are already many examples so that before starting a business, of course, we must prepare for this so that it does not become a loss in the business we are running.
Although indeed this can also be a good experience but of course we certainly do not want failure in business because experience does not have to come from failure even though failure is a factor in experience.

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There are many reasons why small businesses fail, but some of the most common include inadequate planning, poor management, insufficient funding, and a market that is too competitive, and not daring to play hard.
and often small businesses do not have the resources or expertise to compete with large companies, and this can result in them not having enough customers, leading to financial problems and ultimately failure.

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Quote from: Fesatmas on September 29, 2022, 09:55:59 AM

Quote from: lovesmayfamilis on September 29, 2022, 02:09:33 AM

Quote from: ?? on ??

Nice article with lot of meaningful lessons.. The biggest losers are those who don't try anything for fear of losing.. Every loss is a lesson learnt.

I want to argue. It is better to weigh everything and understand that a person is not yet ready for entrepreneurship than to take risks, implying a loss in advance. What are their failures if they have not lost anything? Another thing is when a person is dominated by excessive self-confidence, without a clear understanding of all the risks.
It's not scary to be confident, but it's scary when people are overconfident.

Distinguish between not ready and never want to try. When someone is not ready to take the risk then he still has the opportunity in the future to try. Whereas "never want to try" means that he has indeed buried his own hopes. I catch from what the OP said that someone who doesn't try anything is a loser. I think that's true, because no one can be successful without trying. How can you know the result is just trying never?

Some business owners or investors does have that kind of target or goals that in every investment there's always a failure chance but doesnt mean that it would be completely a solid reason for them to

stop.You cant really able to determine whether a certain business would really be that successful or failure.Business minded person will really be that prepared when it comes to this.

You wouldnt know unless you do try but of course it would really cost you up money because having a business and all attaching expenses is never been cheap.
Some cant really just accept nor able to recover once they had fall down.

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Quote from: lovesmayfamilis on September 29, 2022, 02:09:33 AM

Quote from: ?? on ??

Nice article with lot of meaningful lessons.. The biggest losers are those who don't try anything for fear of losing.. Every loss is a lesson learnt.

I want to argue. It is better to weigh everything and understand that a person is not yet ready for entrepreneurship than to take risks, implying a loss in advance. What are their failures if they have not lost anything? Another thing is when a person is dominated by excessive self-confidence, without a clear understanding of all the risks.
It's not scary to be confident, but it's scary when people are overconfident.

Distinguish between not ready and never want to try. When someone is not ready to take the risk then he still has the opportunity in the future to try. Whereas "never want to try" means that he has indeed buried his own hopes. I catch from what the OP said that someone who doesn't try anything is a loser. I think that's true, because no one can be successful without trying. How can you know the result is just trying never?

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Quote from: Furious 7 on September 28, 2022, 04:01:41 PM

Quote from: Dunamisx on September 28, 2022, 07:01:16 AM

Quote from: odunybiz on September 27, 2022, 02:41:00 PM

Inadequate Financing

Let me talk about this point as I don't accept such as one reason why a small scale business should fail, we can consider what we often referred to as business growth as a process whereby an enterprise proceed from one developmental stage to another and just as we know that many businesses started from being small to expand to something big in the later future and we've got some good examples of some businesses that has little start up capital and remain committed to it and they eventually got advanced and the business turn big while some have started with huge amount of capital but ended in bankruptcy within the shortest period, so it's a responsibility of funds utilization in business expansion and its management, start small and grow big is better than starting big and ending up closed down.

In this case it may be a target that we need to consider. Because in business, especially for small businesses, it is clear that we do not have to set high targets to fit our budget.
Actually, in this case insufficient capital can occur for several reasons and indeed for a small business, it will be more or less affected by capital, even though what you say is starting from small to big, but in this case, adequate money management is needed so that things like capital do not happen which is not adequate.

I got your point here, business line has several requirements for each stages and level a business want to operate in, this is a determination of the business idea itself, then we can come to say that some business just need an adequate start up capital bade on the nature of the venture while some can manage to start small and grow big to develop into the standard required one, the vision mandate of every business enterprise is different and so is their financial capacity required, the least a business may require can be the highest another may needed to operate with, therefore understanding the particular nature of a business can help direct it requires funding capital adequately for effective utilization.

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Quote from: milewilda on September 28, 2022, 04:19:32 PM

It was sulit.com.ph and it turns out to be olx which i do know that lots had been changed and lots had left and using up the service or platform which i wasnt aware that they had gone down.
When it comes to business then there's no assurance that you would really be successful, yes its not bad to make out some changes for the good and trying out to expand but
it wouldnt ensure that it would really be that effective but well its really something the risk where these business owners need to test or try on for the better but it did really just failed and it is one of the risk.

That was initially what I also thought when I saw OLX on the list however Sulit.com was a buy and sell company here in the Philippines and it was quite a popular one where even I was able to use it to buy some goods from the platform however OLX was able to buy the company.

I did quick google research and this is what I've found in regards the connection between Sulit.com and OLX.com.

Quote from: google.com

What happened to Sulit com?

Sulit.com.ph, arguably the number one online Philippine marketplace where Filipinos can easily buy and sell items, is officially not in existence anymore. According to its website, Sulit confirms that it has officially rebranded itself as OLX.ph – OLX being the company that bought over Sulit into its porfolio.

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Quote from: Smack That Ace on September 28, 2022, 09:20:47 PM

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.

Thats true. Nokia is well recognized globally but failed to continue to dominate due to few reasons resulting to its downfall.

I also have have a business that is running for years now. The profit is unstable but we managed to survive even there are many new competitors sprouting in our place. It might because we are already well known here and had a loyal customers who gained their trust that's why they keep coming back. We also dont stop marketing our business and giving promotions. It takes guts to be an entrepreneur since you'll never know the outcome but if you are determine to succeed then you have to do the best that you can. If you're too complacent and not competitive there's a high chance for other competitors to take over.

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Quote from: ?? on ??

Nice article with lot of meaningful lessons.. The biggest losers are those who don't try anything for fear of losing.. Every loss is a lesson learnt.

I want to argue. It is better to weigh everything and understand that a person is not yet ready for entrepreneurship than to take risks, implying a loss in advance. What are their failures if they have not lost anything? Another thing is when a person is dominated by excessive self-confidence, without a clear understanding of all the risks.
It's not scary to be confident, but it's scary when people are overconfident.

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Quote from: ethereumhunter on September 29, 2022, 12:29:25 AM

Perhaps of the many young entrepreneurs, only a few can really successfully run their businesses. They are the ones who can learn from anywhere to gain more knowledge and also often try trial and error in business so they can find the right formula for them. Each entrepreneur must have their own formula so that their business can run well and if they get a formula from someone else on how to run their business, they have to adapt it to their circumstances. It will be better because they can find what works for them and help them achieve success.

Yes, each one of us who venture to become a entrepreneurship, might not succeed in the long run. There are a lot of factors and sacrifice that we need to do and there is no formula that really fits everyone to be successful. So it will be a trial and error in the initial and this is where it going to make or break new and young businessman. Hopefully, they will adapt, and only handful can achieved success because it is very difficult if you don't have the expertise or no one is mentoring you. Going to be a struggle, but for those who succeed, it will be worth.

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Perhaps of the many young entrepreneurs, only a few can really successfully run their businesses. They are the ones who can learn from anywhere to gain more knowledge and also often try trial and error in business so they can find the right formula for them. Each entrepreneur must have their own formula so that their business can run well and if they get a formula from someone else on how to run their business, they have to adapt it to their circumstances. It will be better because they can find what works for them and help them achieve success.

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Quote from: sunsilk on September 27, 2022, 04:05:51 PM

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.

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Most of the companies that you have stated seems to be an international company or companies formed in other countries trying to expand in your country. I wouldn't blame them if they had to shut operations. Like you have said they shut down due to "operational difficulties". I guess it was some issues with the government or the local laws that has changed or due to some changes their profits are no longer enough to run their business in your country.

I wouldn't call them "small-scale entrepreneurs" if they have franchises and expanded to other other countries.

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Quote from: uneng on September 27, 2022, 06:46:11 PM

Quote from: edgycorner on September 27, 2022, 06:34:23 PM

Businesses in poor countries tend to face greater challenges and obstacles than those in developed countries. This includes factors such as a lack of access to capital, limited infrastructure, corruption, and a lack of skilled workers. As a result, businesses in poor countries often have a lower success rate than those in developed countries.

I see as a major difficult in developing countries the fact people don't have much money to spare, so you as a business owner have a very limited customers' base to acquire your services and products. People are too worried about survival that they will only have access to basic goods and in a limited scale. Furthermore, even though there aren't customers for everyone, the concurrency is the same or even more expressive than in developed countries. There are too many sellers for too few buyers. This situation has a very negative impact on individual businessmen and many consequently have to close the doors at some point.

This is the reason why as a business owner, you should always search for the best outlet where to build your business, otherwise your business won't work not only because of few customers, but also the products you are selling are not the ones they mostly wanted. In search for the demands of the customers, you should have a thorough research first and start a survey because that will determine the success of your business.

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Quote from: Hypnosis00 on September 28, 2022, 05:04:31 PM

Quote from: odunybiz on September 27, 2022, 02:41:00 PM

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.

It is all connected to each other, once one of them will fail, the business will fail also. That is why we should know which part is weak in order to take immediate action to resolve it otherwise. Those companies that you have mentioned are just a few of having suffered huge losses due to mismanagement and lack of team participation. It was indeed important that each member of the team will understand each other, teamwork, and their is one goal and that is to success, not only for themselves but for the whole company.

Also, it doesn't mean that your first attempt in business will always succeed.
It may take many failed attempts before you can really see the fruit of your hard work.
Also, if you have other members in the team, it would take their effort to accomplish your objectives.
But most young entrepreneurs easily give up if they encounter troubles building their business.

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Quote from: odunybiz on September 27, 2022, 02:41:00 PM

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.

It is all connected to each other, once one of them will fail, the business will fail also. That is why we should know which part is weak in order to take immediate action to resolve it otherwise. Those companies that you have mentioned are just a few of having suffered huge losses due to mismanagement and lack of team participation. It was indeed important that each member of the team will understand each other, teamwork, and their is one goal and that is to success, not only for themselves but for the whole company.

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Quote from: uneng on September 27, 2022, 06:46:11 PM

Quote from: edgycorner on September 27, 2022, 06:34:23 PM

Businesses in poor countries tend to face greater challenges and obstacles than those in developed countries. This includes factors such as a lack of access to capital, limited infrastructure, corruption, and a lack of skilled workers. As a result, businesses in poor countries often have a lower success rate than those in developed countries.

I see as a major difficult in developing countries the fact people don't have much money to spare, so you as a business owner have a very limited customers' base to acquire your services and products. People are too worried about survival that they will only have access to basic goods and in a limited scale. Furthermore, even though there aren't customers for everyone, the concurrency is the same or even more expressive than in developed countries. There are too many sellers for too few buyers. This situation has a very negative impact on individual businessmen and many consequently have to close the doors at some point.

The reason why businesses whether big or small should always have sufficient capital so that the production will always be consistent, and if ever there are sales decline, there are still good amount left that will cover the shortage. Also, in building businesses, it’s also important to consider the population of the consumers and specifically their demands too so that you will create quality products that will be consumed by a large amount of consumers.

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