Nobody starts a business expecting to fail, but sobering statistics indicate that many do, in fact, go under. According to the Small Business Administration’s Office of Advocacy [PDF], three out of 10 new firms with employees fail to survive for more than two years, and about five out of 10 close up shop within five years. The survival rate is even lower for sole proprietors.
There are many external causes for small-business failure, including market size and customer demand, but other equally important factors can hobble a business in its earliest stages — and prove fatal in the long run.
Here are eight reasons why small businesses fail:
- Flaws in entrepreneurial thinking. There’s no template for what makes a successful entrepreneur tick, but certain character flaws crop up again and again when a business fails. It’s vitally important to know why you want to start a business. ... Read more from Intuit Small Business