2 Why do small businesses fail?
David Mellor presented a number of reasons and ‘top tips’ to prevent business failure.
Using some ideas from David Mellor of the Guardian (2015) and Patricia Schaefer of Business-know-how (2001), we came up with ten reasons why small businesses fail:
- Not fully understanding what they are letting themselves in for
- Getting paid and bad debts/lack of capital/lack of liquidity
- Choosing the wrong business partner(s) to help grow the business
- Starting a business for the wrong reasons
- Poor management
- Insufficient capital
- Location
- Lack of planning
- Overexpansion
- Lack of website.
Let’s look at the ten reasons why small businesses fail in a little more detail.
1 What is success?