Small Business Essay

40% of all retail sales and employment for 8 million people are due to the 600,000 small businesses that are franchised.

2. One reason that I believe that many businesses are likely to fail is that the business is not in touch with their consumers. This means that the business does not know what the consumers want from their product causing them to make a product the consumers will not buy. Another reason why the failure rate of businesses is so high is because the business does not make

Statistics from the Small Business Administration show 50% of all new businesses fail within the first five years and one-third of businesses are still open after ten years. There are many reasons businesses fail. They include:

If company failed to offer the merchandise and services to the customers, which they want, then the sales will be limited and which will cut down their revenues and profits.

Most times the customer does not realize small business owners are becoming discouraged and exasperated- because they never tell you. Caught in a perfect storm of a bad economy, no traffic, and trying to make the rent, local independent businesses are having a tough time keeping afloat.

This article states that small businesses creates two out of three jobs according to the U.S. Small Business Administration. With new businesses starting so many jobs it is important to maintain their success. New technology is helpful resource to help small businesses successes.

With more than half of the private sector in the United States, small business makes a crucial part of the economy of the country. Out of the 90 million people hired, 50% of them are working in small businesses or small establishments. (Wiatrowski, p 29) Regardless of how popular they are how much success they have had, finding out an exact definition of a small business is very difficult.

The United States Small Business Administration states that almost 50 percent of small businesses created will fail within the first year, while 66 percent survives during the first two years (The United States Small Business Administration, 2015). Envisioning the future of small business in connection with evaluating success or failure of small businesses is a captivating area for many researchers (Davidson & Kolfsten, 2003). A study on why small businesses in Mississippi have a higher failure rate than small businesses in New York. Stakeholders in Mississippi, particularly the small business owners, aspiring entrepreneurs, business consultants, lending corporation, investors, and customers would want to know the determining factors causing

Long Term Investments: from Balance Sheet, no long-term investing also shows a business in the declining stage of the life cycle.

An increasingly unfavorable operating efficiency could be a potential drain on SSB 's business if SSB does nothing to monitor and stabilize the operating expenses and increase the operating revenues.

What’s more, the business might see a decline in production with an increase of financial problems, therefore leading to Brian’s business in receivership.

According to the textbook, there are 12 common reasons for the failure of new small businesses. This is not an inclusive nor industry specific listing.

There are a significant number of reasons that lead to business failure. Most of the

According to the University of Tennessee, 70 – 80 % of all businesses fail in the first year and only half of the remaining businesses will survive longer than five years. This is a scary statistic, but on close examination as to why these businesses have not been successful, we see that they failed to plan

Businesses are a make-it or break-it conception. They are delicate and could crumble in the blink of an eye or could thrive and make it very far. Businesses are all about maintaining a relationship with customers and knowing how and when to network sufficiently. If a company doesn’t apply these techniques strongly to their business, they could end up with nothing very fast. Another idea is a deprecating rumor about a company that can lead to its downfall. A company is like building a house. If you don’t build the house on a solid foundation, then it will not last.