ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Entrepreneurs face multiple risks such as bankruptcy, financial risk, competitive risks, environmental risks, reputational risks, and political and economic risks. Entrepreneurs must plan wisely in terms of budgeting and show investors that they are considering risks by creating a realistic business plan.

Detailed explanation-3: -Small businesses generate revenue that converts to local taxes feeding the local economy to create a better business within your community. This means your school districts, police forces and other small businesses and organizations will create a support system and reap the benefits of each others’ hard work.