ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Many businesses fail due to insufficient capital. Insufficient capital is also known as a lack of. advertising.

Detailed explanation-2: -Lack of capital can result in not having enough to cover overhead expenses, funding expansion opportunities, or launching a new product to market. Here’s a quick look at how a lack of capital could impact your business-growth prospects. Obtaining funding.

Detailed explanation-3: -Many factors go into a business owner’s lack of working capital, from a low credit score and inability to borrow from traditional financing sources to operational issues affecting cash flow.

Detailed explanation-4: -The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.

Detailed explanation-5: -Startup capital is the money required for launching a new business. Startup capital may come from the business owner, or it can be obtained through crowdfunding or a variety of financing options. With startup capital in place, a business can grow its operations and bring in revenue.