Why Many Businesses Are Likely To Fail Case Study

Issue 1: I do believe that corporations have a responsibility to society as a whole, not only to maximize their own profits and benefit the economy but also to respect the community that they reside in. They achieve this by not only providing employment, but also upholding an image. It is up to

Although so many businesses large and small are started every year, over 90% of businesses fail. Why is that?

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:

Economic responsibility in the United States strongly focuses on the profitability of companies. Also, it concerns the responsibility of the company by producing goods and services to sell so they can be able make a profit. The key to providing a successful corporation is to create jobs and being able to provide products and services to society.

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

businesses fail in their first year, and 44% have called it a day by the end of the business' third year, according to research published by Statistics Brain. Lack of sufficient funding and/or business are primary reasons.

In the free market system all the businesses operate to attract the customer as it is customer’s choice where to shop and who’s product to buy. As soon as business and its products do not appeal to the customer, the business may come to the end of its existence. There are other reasons for financial problems for big and small businesses alike. The financial downturn; it affects consumers and businesses. Perhaps the business could sustain the competition or could not appeal to the consumer, the natural business process should take place and the strongest companies will survive. Government should

Unlike many other recent business failures, such as Tyco International Ltd., WorldCom, or Enron, the failure of the Borders bookstore is a sad tale of a well-meaning enterprise that slowly began to fall behind the times, and was eventually overtaken by its more astute competitors Amazon and Barnes & Noble. Borders began as a small, independent Michigan-based bookstore that eventually evolved into a chain store with a national reputation. But its failure to keep abreast of technology proved to be its undoing. Rather than attempting to sell its books online under its own label, unlike its major competitor Barnes & Noble, Borders outsourced its online sales to Amazon.com, thus diluting its brand name (Sandburn 2011). Borders had already been a slow mover into the business of selling reading material online, allowing its competitors to establish inroads into the market.

If one is looking specifically at the market, there are a lot of factors to consider to determine whether the business will be successful or not. One of these factors is competition which is important because it will impact the amount of customers and could also pose a barrier to entry. For instance, if there is an established pho restaurant in Charlottesville one has to consider their market power and ability to outprice your restaurant or if they’ve been in the market for a while they may possess a competitive advantage over your future restaurant. Slightly related to competition is demand for pho which determines the price and number of customers willing to purchase pho at that price. One has to ask in relation to demand how many people in Charlottesville are willing to purchase pho at $4, is that price optimal? Demand also has sub-factors which must be considered such as are there substitutes for pho and what is the demand for those products (i.e. ramen restaurants). Furthermore, in the context of markets, it is important to consider supply costs. Are the supply markets for inputs volatile? Would I be able to handle a sharp increase in input prices and for how long?

During the last four quarters, Sennott Set-Top Suppliers collaborated to make sound business decisions in order to support its previously defined identity: a firm known for its functional and affordable products and high quality customer service. We believe this position continues to strengthen through our strategy to be conservatively aggressive; specifically, attacking our competition when appropriate, being cost-oriented, and improving our operations.

a. The 3 main causes of businesses fail are management shortcomings, lack of training, and government regulations. Many times people are unprepared for the demands of running a small business.  It takes all of your time, money and energy to keep a small business alive.  .  In the beginning it's all about you and you have to be honest with yourself about just how capable of a manager you are.  If you make rash, fearful decisions or if you are not great at managing people, you will have a hard time making your business work. This also has to do with if the individuals that start the businesses have very little training. It’s hard to train others when you, yourself have no idea

Over fifty percent of all new business fail within the first five years and only one third of new startups will make it to year 10 (Kamo, n.d.). There are numerous reasons for failure such as lack of a sound, comprehensive business model, poor leadership and team dynamics, thinking too small, poor quality and lack of financing or poor money management (Kamo, n.d.). To clarify, growth too fast is cause of failure, but not having a strong revenue benchmark is also a detriment. There are several ways to counteract the pitfalls and lend Poptails Plus on the road to success. A strong team with a sound business plan will be prepared managing the pitfalls and proactively solving issues revealed.

Market Failure in Economics Market failures have become a common phenomenon and now that the world has opened up things are much faster paced and things happen much quickly then how they used to happen in the past. It is the over dependency of the nations on one another that have brought these economic crisis on one another and the last century was full of such instances. There was no winner or loser in such a case and in the end it was the common man who lost a lot. These are the happenings, which suggested that it was about time checks and balances were put in place and in the end it was necessary that such things could be avoided for good for the betterment of the people. The crash of 1929 started a recession that lasted for almost a decade and it engulfed the entire world in the problem. Had the people been able to predict it, it would have been avoided but that was not the case and the crisis was so massive that prices shot up like anything and the jobs were slashed. At the end of the day it was very costly and the entire world economy collapsed. It showed how vulnerable can the free market economy be. It also showed how dreadful it can be if the market failure and the collapse of an economy is not cushioned in the nick of time to reduce the potential damage that can be caused. The crash on Monday 22nd October 1929 in New York Stock Exchange was probably the biggest dilemma of economic nature faced by the world. It was a problem that engulfed the entire world causing

Why do markets fail to generate socially desirable outcomes? Markets are not infallible. They can fail to organise economic activity in a socially desirable fashion. Markets failure are due to social inefficiency and inequity. In the real world, the market rarely leads to social efficiency: the marginal social benefits of most goods and services do not equal the marginal social cost. Part of the problem is the existence of 'externalities', part is a lack of competition, and part is the fact that markets may take a long time to adjust to any disequilibrium, given the often considerable short-run immobility of factors of production. Let's analyse the types of market failure.

Business and Entrepreneurship, today face difficult, complex tasks, and challenging projects which require companies to rely on Teamwork, this is the only way to get the job done, which requires a course to having large size, diverse, and highly educated specialists’ teams. An inverse relationship between the teams’ size and the ability of collaborative. The study by Lynda Gratton and Tamara J. Erickson in Harvard Business School shows a result of 2,420 surveys including members of 55 teams, just 1,543 people replied, which refers to a response rate of 64%. This research represents eight ways are fall into four general categories, in order to build collaborative teams, listed below: