ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -1 – Lack of planning – Businesses fail because of the lack of short-term and long-term planning. Your plan should include where your business will be in the next few months to the next few years. Include measurable goals and results. The right plan will include specific to-do lists with dates and deadlines.

Detailed explanation-2: -New businesses often fail when entrepreneurs don’t have the resources or knowledge to properly execute their ideas. No one likes to fail, but if you do, use the valuable experience you gained to lead your next endeavor to success. Entrepreneurs tend to fail right before peaking in the business cycle.

Detailed explanation-3: -Entrepreneurs often fail because of common mistakes including building unnecessary infrastructure, creating services unproven to sell and failing to focus enough on sales. While many blame a lack of funding, it’s typically a lack of systems, lack of KPIs and simply not working hard enough.

Detailed explanation-4: -They don’t give themselves enough runway. You often hear that it’s cheaper and easier to start a business in many industries nowadays thanks to technology. They don’t know what being an entrepreneur entails. They don’t have a market for their product or service. 20-Oct-2016