Daily news on statistics comes from the business world but the most concern is those that have to do with small and medium enterprises. We all know that unfortunately 80% of them fail in their first five years of life and 90% is less than 10 years.
However many of the causes for issues without the company but with the attitude and behavior that the entrepreneur. Many entrepreneurs try every day to fulfill the dream of having your own company and are confident that they will. This is good but the trouble comes when they encounter a lack of experience, bad company, commit the sins which we have discussed and end up losing everything.
Here we will show you the top 6 reasons why an SME fails:
1. Greed and Stinginess
One thing to be stingy and knowing how to save another; as an entrepreneur you need to do the latter without forgetting that your business deserves the best, however, when the entrepreneur is stingy is being forgotten quality and start searching for cheap, this is not at all welcomed by a customer.
2. Irresponsibility or Lack of Seriousness
If you thought that being an entrepreneur going to work less than others, you are very wrong. This does not occur in principle at least. Many entrepreneurs expect others to do the work while they rest, not paying attention to the business plan, financial or business strategies.
Entrepreneurs start doing everything half especially when large investigations which have to perform as market research, financial analysis, etc. Lazy start and always use the phrase “I do it now”
We have already said many times that the entrepreneur is obliged to learn every day, no excuse because there are many resources especially complimentary. It can be via online, read a book, attend courses, conferences, etc. You must know fundamental or basic aspects of each area of your business.
5. Giving Up Too Soon
This is one of the most common, and happens when all of the above have come together, they feel they cannot handle the pressure, size of commitment and work that involves undertaking. Your business will not succeed from day to day so you must be very patient and work hard every day to get you started to gain ground on your target market.
6. Lack of Courage
Also one of the most common, since entrepreneurs are afraid to risk and failure, most even conducts its business ideas for that. Remember, nothing ventured anything gained.