Topic: Business failure among small-scale entrepreneurs - page 5. (Read 3236 times)

The term building a business is not easy because it takes a long time to see the business develop, in fact many companies have to increase capital every year for the business they run and can only enjoy the results several years later when they have mastered the market Business requires large capital, skills and a good communication network, this is what makes it easier for many business people to develop because they receive encouragement and support from certain parties to develop it.

Unfortunately, not many people have the ability to develop a business, apart from not having capital, there are also some people who don't have the skills to develop a business. Business must be run according to consumer needs and review is needed before someone opens a particular business because if the target market is wrong then the business being run will definitely fail.

The term building a business is not easy because it takes a long time to see the business develop, in fact many companies have to increase capital every year for the business they run and can only enjoy the results several years later when they have mastered the market Business requires large capital, skills and a good communication network, this is what makes it easier for many business people to develop because they receive encouragement and support from certain parties to develop it.

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:

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 be successful in business, one must have various skills and experience, otherwise business must fail. When a person undertakes an initiative he needs to have that knowledge otherwise he will not know the important things and will always fail. Also, when a guy starts a business if his products and infrastructure are not good then he will never get good feedback from the customers, and he will fail at that time. Moreover, many times businessmen are victims of fraud in various ways. Some customers find that their business has lost money and failed. So before starting a business, all aspects must be considered, how to make a profit and sustain the business.

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:

1. Efritin

It was founded in 2015 as a classified advertisement website by the Swedish company Saltside Technologies. However, it was unable to scale beyond its second year due to various factors such as mismanagement of funds and high data costs.

2. GoMyWay

GoMyWay, a Nigerian ride-sharing service, began its operation in mid-2015. It, however, shut down in 2017 through an email circulation sent to its customers.

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.

4. Easy taxi

The ride-hailing company started in Brazil in 2011 and expanded into Africa. It was launched in 2013 in Nigeria, becoming one of the first Rocket Internet armies to arrive in Africa but was later pullout from African market after few years.

https://businesselitesafrica.com/2022/02/09/5-nigerian-businesses-that-failed-within-5-years/?amp=1

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.

https://mkobo.medium.com/13-reasons-why-small-businesses-fail-in-nigeria-3c844fee7e7c

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.

Establishing a successful business is a very difficult task.  Not everyone is capable of it.  To establish a successful business a businessman must be honest.  Such a businessman must have sharp intelligence.  Must have good customer relations skills.  The more customers he can keep in mind, the more his business will improve.  Good product should be provided.  Because no one wants to buy a bad product with money.  If a customer buys a bad product from a store once, it is normal that he will not go to that store again. I agree with your words that enough capital is needed to do business.  Cannot operate business without capital.  To be a successful businessman, one must have a lot of patience. The businessman must be devoted to his goals. Without these qualities, it is not possible to be a successful businessman, failure in business is inevitable.

Any business can experience of bankruptcy because of the demand and the people's need of course if you are the one who will make the business, you must need to cater the target buyers need and if you do a business that most people doesn't need those at all there's no essence this makes become profitable. Let's say the business is in demand; the cons right here is the misleading of prosper management that possibly fail the business itself. Making business from small is the hardest one because you need to experience a lot before you will possibly become a large-scale company. But there's nothing wrong with striving to become one of the biggest soon.

Any business can experience of bankruptcy because of the demand and the people's need of course if you are the one who will make the business, you must need to cater the target buyers need and if you do a business that most people doesn't need those at all there's no essence this makes become profitable. Let's say the business is in demand; the cons right here is the misleading of prosper management that possibly fail the business itself. Making business from small is the hardest one because you need to experience a lot before you will possibly become a large-scale company. But there's nothing wrong with striving to become one of the biggest soon.

Of course, this courage must be supported by funds. And in general, small business owners who do not have sufficient funds to run their business will often face or experience funding problems.
So courage without sufficient funds will be meaningless and this must be the main thing to think about, because with this, when our business is advanced and needs funds we can look for or borrow it from the bank with the confidence of being able to pay.
And small businesses must also be supported by leaders who are not weak and also have expertise in the fields of business, finance and marketing. And with the addition of hard work, patience and continuing to try, I'm sure the small business you run will become big or at least run smoothly.

Of course, this courage must be supported by funds. And in general, small business owners who do not have sufficient funds to run their business will often face or experience funding problems.
So courage without sufficient funds will be meaningless and this must be the main thing to think about, because with this, when our business is advanced and needs funds we can look for or borrow it from the bank with the confidence of being able to pay.
And small businesses must also be supported by leaders who are not weak and also have expertise in the fields of business, finance and marketing. And with the addition of hard work, patience and continuing to try, I'm sure the small business you run will become big or at least run smoothly.

Although courage is needed to take the first step in running a business. But courage is not the only thing needed in building a business. Because in the end courage is only needed when we have sufficient capital both financially and insightfully. Then we also need careful planning and many other things that are needed. And when all the preparations have been completed only then does one need more courage in taking the first step. And this courage is also needed in making breakthroughs or renewable innovations so as not to be unable to compete with large companies that have been around longer than our business, which has just started. In essence, courage is needed to take on a challenge in business.

It's just that the real challenge will be greater when our business is already running well and then other competitors appear and that's where we have to make a better strategy in running our business so that it can survive and avoid bankruptcy. Following market trends is a good thing. But it would be better if we created a trend starting from our business. A trend emerges because someone started it. And most companies just follow trends. But the most successful are usually those who start the trend themselves. Trends can be created because of how good the innovation is and then because of how good the marketing carried out by a company is. So it attracts the interest of many people and creates a trend.

Without an experience you can led the foundation of a business but business success cannot be possible because if you have no idea that how to attract costumers, how to show your products to them and how to manage the rate with costumers then you will not get profit like other successful businessman gets.

Make discussions with those businessman who are profitable so you will be engaged with his planning and strategies which he use in his successful career and also you will have experience of working.

A similar situation occurred in my country. A brand launched a very good product and started selling more than others selling similar products. Seeing this situation, the other brand increased its advertising expenditures and virtually eliminated the other brand from the market. By using all its advantages such as logistics network, advertising and free products, it eliminated the product of the small-scale but successful company from the market.

In such cases, power is often money. Advantages such as advertising and logistics are all provided by having money.

Some customers even expect for an improve of our quality. They may feel bored if there is no improvement at all, they may judge we have no innovation. But this type of customers mostly come from the upper-middle class people. But if the most customers come from the low class people, they only focus on price. As long as it is cheap enough, they will never complain.

Any business that lack proper and adequate management will suffer loss, because if there's nothing wrong with the business then the people in charge will mismanaged it and ruined it down completely, when we are starting a business enterprise, we have to engage on business plan on both short and long term running, there should also be a proper means of advertisement for the business promotion and there must also be a good background study of the business location and prospects.

This is a sad truth that nobody wants to admit even those successful businesses. Luck comes into factor and connections as well. Unless your product or service is hella unique that it doesn't exist yet, you would struggle getting audiences and people wanting to buy your product.

Luck would come into place like you need to find a good place to build your business. If you were born in a desert, well it might be harder for you than other small scale entreps.