Why do Entrepreneurs fail?

In this article we are going to talk about the Why do Entrepreneurs fail? Entrepreneurship involves the creation of new business by the person who is called Entrepreneur or owner of that business. It is  also the capability of starting a new business and to plan ,to organise it  with accepting whatever that comes in its way. Entrepreneurship is the most trending option to the youngsters of this generation because it has a whole lot of advantages. It is also gaining momentum in these years and it is chosen by a majority of the population is because, we doesn’t like to work the nine to five job and also working there  doesn’t give us neither success nor high income. This nine to five job is considered boring because there is no space for innovation. But when it comes to entrepreneurship it wholly  depends on our creativity and innovation.

 Though jobs guarantee us the fixed income, there is no aspect of growing in it and doesn’t earn us high income. Through entrepreneurship there is no boss or owner to control us, but in this we are the owners itself, so it gives a sense of satisfaction and also a bunch of responsibilities as well. Entrepreneurship gives  us  more chance to grow and earn more income.

Why do Entrepreneurs fail?

Here are 10 reasons that why do entrepreneurs fail. As discussed above, there is more advantages and perks in entrepreneurship as it gives more space for growth and profit but , entrepreneurs do fail because of his or her own reason and the person who is responsible for it directly would be the entrepreneur or the owner, but indirectly there are a whole lot of other factors as well..

1. Not taking risk

Not taking risk

Entrepreneurship is the concept that is always associated with risk. When starting a business, profits and income do flow to us because of the risk taken earlier. Any entrepreneurs or owners cannot escape from taking the risk. every successful entrepreneurs have taken the calculated risk so as to the successful existence of the business. profits and income cannot be earned without taking  risk, so it applies for the entrepreneurship as well. Many young  entrepreneurs nowadays are quite hesitant and are afraid of taking the risk, but through this fear nobody can start the business. Every business involves it’s Businessmen or the entrepreneurs to take some considerable amount of risk . In any business  its owner should not shy away from taking risk. If they do so they might  end up in losing the success they can get in future by  taking risk.

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2. Entering into business without prior knowledge

Entering into business without prior knowledge

Entrepreneurship is the vast concept that has to be understood by every entrepreneur or the owner. So entering the business without prior knowledge is the major drawback to the owner. When starting a business, the entrepreneur should learn at least about the basics of it, as this knowledge helps in taking better decisions in  day to day process. Some may enter into business as to continue it, which was one started by their elders, but he or she might not have knowledge about their business . This might lead to the major factor which leads to the failure of entrepreneurship. So having adequate knowledge of business is most important as taking risks in business. This knowledge helps in successful running of the business in long Run.

3. Following others  blindly

 Following others  blindly

Many people are so much influenced by their  surroundings in this generation. Many business attract others because of its success  and  high profitability . But this business doesn’t might suit to everybody. This has to be understood by the new entrepreneurs. Whenever a businesses earning profit and is successful  many younger businessmen starts to follow them blindly without the proper research about its suitability to his or her  locality, capacity, etc. So this is one of the major factor which might lead to failure of entrepreneurs. The entrepreneur should make sure that he or she should learn its advantages, suitability, affordability, opportunities of any business before starting any of it, and anybody should not follow others blindly  because there might be differences that we may not know and this might lead to difficulties in future.

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4. Lack of innovation and motivation

Lack of innovation and motivation

Nowadays, people prefer unique ideas and creative things, so the business in this generation wholly depends on the innovative things it gives to its customers in its good and services. Entrepreneurs neither should not try to copy others not follow any anyone blindly. If it does so, People finds it boring and cannot be attracted to our business. So every business should strive hard to provide its customer with this unique products or ideas so that it leads to the success of business. To be innovative and creative in business there should be a lot of research that has to be done to find out what the customer needs . Business can also try to do survey to better know its customers. So if there is a lack of innovation and creativity, the entrepreneurs might definitely fail.

5. Venturing without adequate capital

Venturing without adequate capital

Capital is the most prominent and significant aspect of any business. A  business can be started when it has capital . Capital is considered as the money factors necessary to start a business or to purchase resources for the business. When it comes to entrepreneurship, growth and success of business is possible only when it has a languid capital. Capital is the factor which brings innovation and creativity into  the business. When a business wants to enter into a new venture or to start a new project, capital is very necessary. So when Entrepreneur wants to start a business or to expand his other existing business, he or she should make sure that they set up a particular amount as capital. Every entrepreneur also should know the ways of capital procurement. So when there is no adequate capital, the entrepreneurship starts to breakdown. And eventually entrepreneurs also fail.

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6. Not understanding the market trend

Not understanding the market trend

It is very important for an entrepreneur to know what’s going on in the market. He or she needs to learn about the needs of the customers and the demand which exists in the market. Understanding the market trend is as important as not following the trend blindly. The entrepreneurs main focus should be on producing or giving services of the products which is necessary for the customer at that point of time and he or she should start working on it. So to this basic knowledge about understanding the market trend is very important to come to any conclusion. So if any entrepreneur fails to make such changes according to the variations in the market, then this is  one of the reasons that leads to failure of an entrepreneur.

7. Not understanding the behavior of customers

7. Not understanding the behaviour of customers

Consumer  behaviour is the most vast concept in economics. Usually consumers probability of buying or  getting a goods or  services largely depends upon its price. So the demand in market for certain products or goods depends upon the consumers. So the entrepreneurs or the owners must understand his or her customers and should work in a way of satisfying them through their products and services. Some businessmen target their customers wants and start to ensure that their organisational goals are directed toward satisfying their customers needs. So this leads to the successful existence of  business as its focus remains on consumers and hence every entrepreneur must learn to understand its consumers behaviour in order to earn income of profit, but in  case, if he or she fails  to do so , the entrepreneurs also fails.

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8. Lack of marketing strategies

 Lack of marketing strategies

Marketing strategies is one of the most important process of the business or organisations. It  helps to understand their specific market and the way of how to influence customers, it also helps to target our customers and to succeed in delivering the goods and products before our competitors does. Every entrepreneur must understand the marketing tools available and should make use of them. Marketing strategies includes promotions such as digital marketing ,email marketing ,affiliate marketing, content marketing, etc. The entrepreneur should be able to use this tools accordingly. As stated earlier, it is most prominent process. Ever if the entrepreneur lacks the marketing strategies, he or she will definitely fail .

9. Profit as the only objectives

Profit as the only objectives

Everyone pursues the thought that businesses are for earning profit only, but this should not be true. Profit earning should only be a part of the objectives planned in the business. Ever if the entrepreneur starts to pursue profit as the only objective, he or she starts to fail at that thought itself. If profit is the only motive than the business starts to lose reputation, its customers, its relationship among the creditors, etc. Along with profits, earning the good reputation with the company or business (Goodwill), Increasing its existing goodwill, maintaining quality in its goods and services, expanding its investment areas etc. should be the objectives of any entrepreneur . Not only earning  profit is important, but also maintaining good relationship in the society do matter a lot to business. If the entrepreneur makes their motive In all this aspects and then a successful business can be formed.

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10. Taking the competitors lightly

Taking the competitors lightly

Every field or area that we choose has competitors .Businesses no different. Competition is the factor which keeps the fire sparking inside us to do better than our competitors. This enhances our overall performances. Healthy relationship and competition should exist between the companies. Every single mistake that we do gives our competitors a chance to move further than us and gaining customers. Competitors  should also  be a topic in our planning and every entrepreneur should keep an eye on his or her competition and should strive to take first place in  the market and among customers. So any entrepreneur should never give this chance and should never take their  competitors lightly . If he or she does so then this is the major factor that makes him or her to fail.

So here are my ideas on how and why the entrepreneurs fail. By keeping all these factors in mind a successful business can be started.

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