In each industry there are successful companies, those that fail or don’t do well and there are those that shrink or are always stagnating and fail in the end. Failure is the last thing one focuses on when beginning a business.
Failure in companies is caused by more than one reason. Companies can be in business but fail to attain their maximum potential; they don’t go over mediocrity or don’t just grow. Statistics circulated by the SBA-small business administration-show that 70 percent of new establishments by employers carry on for two years at least and a percentage of 51 carry on for five years at least. This cry is far from the belief previously long held that there is 50 percent failure of businesses during the beginning year and 95 percent failure in a period of five years.
Competition, size of the market and demand are some external factors affecting growth of businesses. Internal factors dealing with leadership and operations are also considered. Factors believed to differentiate between failing and a prospering business include the following: The biggest factor that is contributing to failure of small businesses is the lack of marketing. Marketing is a practice of organizations or individuals that facilitates the selling of their services or products to other organizations or companies deals with branding, analysis of the market and also advertisement. Success is brought about by how companies execute their marketing but perception is also crucial. It is the reality.
Another reality is that companies which are small have a hard time locating resources that aid them in this detracting portion of their businesses. This means that failure or success of marketing of small companies many times trickles down to the entrepreneur’s capabilities. Not everybody does well at everything. This makes small business owners helpless.
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