Factors That Lead to Business Failure (Entrepreneur side)

There are several factors that cause entrepreneurs fail in running his new business:

1. Managerial incompetence. Incompetent or does not have the ability and knowledge to manage a business is a major factor that makes the company less successful.

2. Less of experience to coordinate, manage human resources skills, and ability to integrate the operations of the company.

3. Lack of financial control. So that the company can work well, the most important factor in maintaining financial is cash flow. Manage the expenditure and receipts carefully. Error in maintaining the operational cash flow will hamper the company.

4. Failed in planning. Planning is the starting point of an activity, once fail to plan then it will have difficulty in implementation.

5. Inadequate location. Strategic business location is a factor that determines the success of the business. Not strategic business location can lead to the less efficient operations.

6. Lack of surveillance equipment. Supervision is closely related to efficiency and effectiveness. Lack of supervision can lead to the inefficient and ineffective.

7. Less earnest in trying. Half hearted attitude towards the business will result in the work done to be unstable and fail. With a half-hearted attitude, chances failed to be great.

8. Inability to make the transition. Entrepreneurs who are less prepared to deal with and make changes will not be a successful entrepreneur.

Success in entrepreneurship can only be obtained if they can make the change and able to make the transition any time. All of this might never happen if the person has the entrepreneurship character.

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