3 Reasons Entrepreneurs Fail In Business
Skip to content
Program Studi Akuntansi | Fakultas Ekonomi dan Bisnis UMA
youtube
instagram
id Indonesian
en Englishid Indonesian
JURUSAN AKUNTANSI TERBAIK DI SUMUT
Call Support 061-822-5602
Email Support doc_akuntansi@uma.ac.id
Location Jl. Setia Budi NO.79 B, Medan
  • Home
  • PROFIL
    • Akreditasi
    • Fungsionaris
    • Struktur
    • Visi Misi
  • AKADEMIK
    • INFORMASI AKADEMIK
      • AKADEMIK ONLINE
      • E-LEARNING
      • JURNAL
      • LAPORAN AOC
    • JADWAL AKADEMIK
      • JADWAL KULIAH
      • JADWAL PRAKTIKUM
      • JADWAL UTS
      • JADWAL UAS
      • JADWAL SEMESTER ANTARA
      • JADWAL WISUDA
    • KALENDER AKADEMIK
    • KURIKULUM
      • Semester I
      • Semester II
      • Semester III
      • Semester IV
      • Semester V
      • Semester VI
      • Semester VII
      • Semester VIII
    • EKIVALENSI MATA KULIAH
    • DOSEN PENASEHAT AKADEMIK
  • AKTIVITAS PRODI
    • KEGIATAN PRODI
    • PRESTASI PRODI
  • MAHASISWA
    • BEASISWA
    • MAGANG
    • SISTEM INFORMASI
      • DATA MAHASISWA
      • BLOG MAHASISWA
      • JURNAL MAHASISWA
      • AOC
      • ELEARNING
      • APIK
      • KUOTA
      • OPAC
      • WEBMAIL
      • SIPRODI
      • ANDROID AKADEMIK UMA
      • ANDROID INFO UMA
    • Prestasi Mahasiswa
  • DOSEN
    • Data Dosen Prodi
    • BLOG DOSEN
    • Aktivitas Dosen
    • prestasi dosen
    • JURNAL DOSEN
    • AOC
    • RKTS
    • RPS
    • TKTD
    • ELEARNING
    • OPAC UMA
    • WEBMAIL
  • ARSIP
    • DOKUMEN PRODI
    • PENGUMUMAN
  • ALUMNI
    • TRACER STUDY
    • DATA ALUMNI
    • LAYANAN ALUMNI
    • AKTIVITAS ALUMNI
    • PRESTASI ALUMNI
  • LABORATORIUM
    • INFORMASI LABORATORIUM
    • APLIKASI LABORATORIUM
  • Hubungi Kami

3 Reasons Entrepreneurs Fail In Business

Home > News > 3 Reasons Entrepreneurs Fail In Business

3 Reasons Entrepreneurs Fail In Business

Posted on February 17, 2021February 23, 2021 by admin
0

Recent studies show about one-fifth of startups fail in the first year, and almost half fail within five years. The survival rate for ten years or more is only one-third. Entrepreneurship comes with many risks, and one is never sure whether the business will survive the rough storms of business ownership. Therefore, people who are not comfortable with entrepreneurship’s uncertain nature prefer working as employees all their lives. But why is entrepreneurship risky when it comes to starting and running businesses? Here are three reasons entrepreneurs fail in business and how to avoid them.

Inadequate Management of Resources

Often small businesses overspend their resources in the first few years because they want to give the venture all they have to make it successful. However, successful businesses do not require an abundance of resources but better management of resources. Spending a lot of money in the first year means that the business is left with little or no money for the future. Also, small businesses are unable to manage their human resources effectively. The success of a business depends on the strengths of its team. Small businesses and entrepreneurs avoid hiring the required professionals. They try the allocation of several tasks to one person, which causes trouble for the company. Employees wish to work for multinational organizations, and finding a skilled workforce becomes a challenge for the businesses. The lack of management of resources by the company leads to the failure of the business.

Lack of Marketing Efforts

Marketing and advertising are important endeavors for all businesses, large or small. Choosing the right strategies for marketing, sales, and advertising is critical to the company’s success. Entrepreneurs often invest little effort in marketing their business, which fails to attract the target audience; therefore, the business fails. Recent studies on business failure show the small businesses avoid vigorous marketing because they cannot compete with market giants. However, they fail to understand that marketing does not mean making sales more than competitors. Marketing is the process of knowing the target market, analyzing their needs, developing efficient products for the target market, making potential customers aware of the product, and making sales. If any step in the process is not performed properly, the business is likely to fail.

Over-Expanding the Business

A few sales at the start of the business does not indicate expansion. Over-expansion occurs in two ways. Firstly, when businesses receive a few orders and make sales during the first few weeks, they start taking more orders which they cannot fulfill due to the limited resources and experience. This affects the quality of products and services provided to the customers and decreases the repurchase chances by the customers served in these chaotic periods. Customers are always looking for personalized experiences with the company, which is impossible if the company is trying to serve more customers than it can handle. Secondly, the companies start investing in the business, based on the few sales made. More inventory is added, new machines and equipment are purchased, more staff is hired, and a vigorous expansion is witnessed.

On the contrary sustainable businesses demand calculated expenditures. Also, a few sales do not determine the demand and potential of the business. Small businesses must be reluctant to undergo major expansions until they have successfully implemented their initial business plans.

Conclusion

Unlike multinational organizations with abundant resources and the ability to take risks, small businesses cannot endure high risks. In case of a failure, the stakeholders will face huge losses. Entrepreneurs need to understand that running a successful business demands maturity, patience, and the ability to make an efficient, smart, and calculated decision. It demands control of the impulsive attitude of young and inexperienced entrepreneurs. However, a balance between avoiding risks to avoid undue expenses and taking risks to enhance profitability is the key to a successful business.

Source: https://www.completecontroller.com/

Tags: abundant resources, efficient products, expanding business excessively, failing in business, improve profitability, impulsive attitude, inadequate management of resources, new equipment, products and services, reasons for entrepreneurs failing to do business, reducing marketing efforts, required professional workforce, skilled workforce, target audience

PENCARIAN

ARTIKEL TERBARU

  • Stan Pameran UMA Di Istana Maimun Di Kunjungi Ratusan Pelajar
  • metode siklus hidup pengembangan sistem dari tahap analisis
  • Tipe sistem infomrasi yang termasuk sebagai sistem pendukung manajemen
  • pengertian peran sistem informasi dalam bisnis
  • Daya kompeteitif dan strategi kompetitif

KALENDER

February 2021
S M T W T F S
 123456
78910111213
14151617181920
21222324252627
28  
« Jan   Mar »

KAITAN UMA

 

 

KAMPUS I
Jalan Kolam Nomor 1 Medan Estate / Jalan Gedung PBSI, Medan 20223
(061) 7360168, 7366878, 7364348. Call Canter : 0822-6777-1313, 0822-6777-1314, 0813-7095-7775
(061) 7368012
univ_medanarea@uma.ac.id
KAMPUS II
Jalan Sei Serayu Nomor 70 A / Jalan Setia Budi Nomor 79 B, Medan 20112
(061) 8225602, 8201994 HP : 0811 607 259
(061) 8226331
ekonomi@uma.ac.id

PENGUNJUNG WEBSITE

  • 0
  • 1,985
  • 555
  • 19,774
  • 72,945
  • 1,249,007
  • 552,263
Copyright 2016-2023 © by PDAI Universitas Medan Area