Reasons for Small Business Failure Essays

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Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business. 90% of all small …show more content…
Then use this information to build a comprehensive and wellthoughtout business plan that will help you reach these goals. The process of developing a business plan will help you think through some important issues that haven't been considered yet. The plan will become a valuable tool to raise money for the business. It should also provide milestones to gauge the success. These are the advantages and disadvantages of sole proprietorship, partnership and corporation are:
Sole Proprietorship is the easiest and least costly way of starting a business. A sole proprietorship can be formed by finding a location and opening the door for business. There are likely to be fees to obtain business name registration, a fictitious name certificate and other necessary licenses. Attorney's fees for starting the business will be less than the other business forms because less preparation of documents is required and the owner has absolute authority over all business decisions. Partnership has two common types that are general and limited partnerships. A general partnership can be formed simply by an oral agreement between two or more persons, but a legal partnership agreement drawn up by an attorney is highly recommended. Legal fees for drawing up a partnership agreement are higher than those for a sole proprietorship, but may be lower than incorporating. A

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