Topic: Business failure among small-scale entrepreneurs - page 8. (Read 3234 times)

This is one thing that people seem to always forget. It's okay to dream big and aim high but we have to be rational. You can't start a business today and expect the profit to start rolling in immediately. Sometimes when things don't go as you thought you would immediately it doesn't mean you should quit.
Running a business is quite hard and starting it up is even harder so you have to be ready for what comes after you start a business.

Don't look at others who are making tons of money from that particular business and feel you should be making that much money too. You have no idea how things were for them. So instead of thinking it's a get-rich-quick scheme, learn, adapt, grow, and find out ways you can develop your business.

Aside from that, make sure you provide grade-A level services or products.
Your business won't survive for very long if your product and or service is shit.

Making loans to banks to build a business certainly has positive and negative impacts some people are able to pay off their loans and some are unable to pay off their loans. For those who cannot pay off their loans, of course they do not have a good plan for the business they want to build, but for those who are able to pay off their loans at the bank, of course they have properly arranged the plans for the business they are building and they consider the loan to the bank must be paid on time so that they are motivated to run their business properly so that they can repay the loan to the bank.

You are right in building a business, of course there are many things that need to be considered so that we don't experience failure in the business that we are going to build, everyone who builds a business has certainly experienced failure, but if they are able to fix it, of course they will be able to achieve their success.

Competition surely plays a big role in business failure, especially when small-scale entrepreneurs face big companies that have more resources and already have a well-established name and status in the business industry. Moreover, these big companies are backed up by good investors which only adds to the challenge.

I think the biggest reason why start up or small business fail is because the competition that very tight. even some big investors invest to a company and let the company spend their capital only for advertisement, promotion, discount and etc. even the company is not making any profit every single year but the company value or price in the stock market is rise. those investors gain profit from it. it create huge entry barrier for start up business that prevent them to get market share. fortunately expert said that this method is not work anymore. at least it is what happen in my country.

This is a small business that we are talking about and not a large company. Although I know a small business has the capability of having up to 100 employees, which some people can still consider large, it does not take them away from being a small business. Suggesting that a business runs up to 5 years of promotions for their business is not a bad idea, but you also have to consider other factors above the advertisement, such as the amount that is to be spent and whether the product that the business has is actually what the people want.

To meet up with competitors Entrepreneurs should always take customer relationships very seriously, and they should always be conducting some monthly or annual survey with their customers in order for them to know where their products need improvement, where they need to work on them, and what the actual demand of the customers is. Running a million promotions without a working product won't bring the company any positive results; rather, it will cost the company unnecessary expenses.

All those things you made mentioned are part a business failure. And I will also like to add some to the list so people can see them as well. The failure of government to create an enabling environment for the small scale enterprises is one one of the caused of their failure. Like what happened late last year and early this year in Nigeria was caused by the government. The government printed new naira currency and also limit the withdrawal amount of money and the whole the affected businesses more than any other thing. And this policy was enacted because of the General election in the country and after the election, the policy of withdrawal limit was not reverse so many businesses failed in the country.

And in practical observation, any business which has been in existence for 5 years and above have the capability of staying longer and if you look at things around the failure of these business as the op said they are within the 5 years interval.

In my view, when comparing truly successful businesses to those that falter, the proportion of failed ventures tends to outweigh the successful ones. The failures, often unhighlighted by the media, cast a shadow over accurate quantification. Even certain established enterprises that once soared might crumble in a remarkably short span, categorizing them as failures despite their previous ephemeral triumphs.

The essence lies in recognizing failure as the culmination of the business journey, whereas success demands continuous preservation. An individual who encounters setbacks in their entrepreneurial pursuits indeed retains the opportunity to forge anew, while a prosperous business owner must adeptly navigate the waters of sustainability to avert decline.

Hence, small and medium-sized businesses often find themselves susceptible to downfall, as sustaining is inherently more arduous than initiating afresh.

That's why small-scale entrepreneurs must prepare everything carefully and run it to the fullest, with optimism and enthusiasm. They have to take advantage of the opportunities that come their way as much as possible because if they don't they will find it difficult again if they have to start over from the beginning because they only have mediocre capital, so it is difficult to create new opportunities for entrepreneurs who are less financially capable. What's different from the rich, he is able to repeat it several times to achieve success. one-time failure is meaningless and they regard it as mere experience as evaluation material when they want to start a business again.

Also, small-scale entrepreneurs often experience business failure due to various common factors, including not enough financial resources, lack of management skills, and inadequate market research on their industry and competitors. Businesses should never be complacent, and they need to keep assessing their strategies and adjusting to market changes. Succeeding in entrepreneurship is challenging, but with the right mindset and resources, overcoming obstacles and failure is possible, and a higher success rate.

Yes this is verifiable that those who never loss hopes are always fortunate so if you wants to be a Victorious businessman then try to explore about the faults that your are doing in your efforts.

There is nothing which a man cannot do but one should work properly for it because the word of impossible (I m possible) signify that everything is achievable. If you are unable to get success in one project by executing every single effort then either you should change the way of your business or change the overall business to select another one.

Through continuous efforts you will one day get the reward of your hard work and your business will be acceptable by everyone as hard work never become useless.

Startups need badly funding for them to survive. That's the first thing that they need and without which, survival of them shortens. But even with funding, that doesn't mean that they're going to survive this brutal competition and many of these startups don't make it to the end.

That is why market research and studies are needed for the startups. They need to know the market that they are targeting and they need to be focused on it before proceeding to the next stage that they're planning to do. What's wrong with these many startups, they are not yet successful in one niche then they want to expand as soon as possible which they think is beneficial and will make them successful already. That's a wrong strategy and many proved that to be wrong.

My advice is just this. If you run a business and experience failure, never give up trying and keep trying, and if you are tired, you should take a break first, then get back up, and change your ways.
And don't blame your efforts. Maybe something went wrong as long as you try and always fix what's wrong with your business, whether it's your efforts that are not optimal or there are other factors and this must be contemplated, corrected and used as a lesson.

The point is never give up, and try to keep changing the ways that have been done and failed, and always make corrections so you can get better. Because all successful business people start from failures they have experienced before and become lessons for improvement, until you find a suitable and successful business.

thats interesting take and I think it holds truth, so many business are indeed relying on loan hoping the business gonna went well for another years until their loan completely paid and their business grow significantly in no time, but the reality is harsher than what we imagined, so many business went bankrupt simply because pandemic that affects greatly the overall interest and their income which means defaulted loan.
this is also why building business from small to big one is also really difficult, if you don't take loan the business hardly thrive, it might lose momentum and never grow, but with loan you also exposed with the fact that one defaulted loan already make you lost everything, its all always risk accompanying business in their growth.

The option you mentioned is a good option and is worthy of consideration by novice businessmen as well as experienced businessmen. Because they really have to see the environment that is most frequently visited by everyone from various directions so that their business can be more advanced through a greater level of sales, besides that the rich are indeed not the main target for business people, but if business people can target more people If you are rich to glance at the products that are in his business, that will also be better. Because the main thing is to target everyone from all walks of life in the surrounding environment and must really ensure a place of business in an area that is more accessible to everyone.

That is the tactic of all companies because every company that is already running will certainly have clear reasons when spending money on something. And the main thing is to encourage the growth of their own business, because the company is included in the big business category so that every decision they want to make must be based on sufficiently mature consideration, especially now that there are so many competitors who continue to show themselves to be the best so they can attract more customers from other companies to their place.

Yes, that's right, and now borrowing from banks to be used as business capital has become a common thing for some business people themselves. But well as you said that there are indeed negative and positive sides to this action, because it involves loans to banks, as we know if some of them cannot pay their debts because for example the business is not running as expected or maybe even fails then it is very likely that they will be in a dizzy condition or confused because they have to pay the money they have borrowed and obviously there must be some pressure from the bank if their payments have problems. I even saw some of them pledging their house certificates or other valuable assets as collateral. Basically, it is difficult to find capital for those who have a middle to lower income or economy, and if they want to open a business or do business then only banks are the main choice and that is more realistic but there are risks too.

So the point is I hope that before you build a business or any field of endeavor, it is not only money that you need but you must also have a strong mentality, because difficulties or maybe failure will definitely come to you at some time in the future. So prepare everything and consider carefully before unwanted things happen.

Starting is the priority though and the bank's system issues are a chance for us crypto enthusiasts.
Form a local investment group and seed start ups i.e is a possible solution.

Indeed, there are many companies or businesses from the lower middle class where they even start a business with capital money obtained from bank loans. But in this case there are positive and negative points from this. The positive point is that someone can start a business faster. But the negative point is that when the business doesn't go as expected and fails, of course he has to keep paying the loan repayments that he made capital.

And currently there are actually quite a lot of banks that provide loans for business capital and so on. So now more people are starting businesses from borrowed money.
And I hope people avoid this way of doing business. Even though we can start a business faster, what we have to be aware of is the very high risk when the business doesn't go well. Unless we are already 99 percent sure of the success rate of the business that will run.

Most middle class companies rely heavily on banks to live and survive.
The entire system is set up like a house of carts.
One loan fails and the company folds.

Well you're right about that. Things like mismanagement of funds can wreck a company badly, which is why every startup has to be very careful and make sure that employ the best methods when it comes to this area. Any money that goes out should always be for the right reason, and not for any purpose that does not help in driving the business growth.

The business is based on the quality and the quantity,if the business is the less quantity one.Then the business is the small business,So the business holder will be the starting businessman most of the time.If the business is satisfied with less quality, then the lifetime of that business will reduce to the shorter time period.So in a business, we should not satisfy with less quality and less quantity is doesn't matter.Because it's based on your capital to business.