ENTREPRENEURIAL

FAILURE
 An entrepreneur is a person who
tries to create something new,
organizes production and
undertakes risks and handles
economic uncertainty involved in
an enterprise.
10 REASONS FOR FAILURE…….
1. Poor execution
2. No viable market
3. Too much leverage
4. Undercapitalizing the business
5. Lack of competitive advantage
6. Competing head-to-head with industry
leaders
7. Picking a Niche that is too small
8. Breakup of the founding team
9. Poor pricing strategy
10. Growing too fast
Reasons for Entrepreneurial Failure Remedial Measures
1. Training
Management related problems
Inexperience On job experience
Inefficient
Lack of support

2.
Individual problem Behavioral therapy
Arrogance
Behavioral training for modification
Lack of faith
Behavioral problem
3.
Production problems Hiring professional plant engineers and
Insufficient technological know-how industrial engineers
Power and water problem Hiring professional management
Product related problem Hiring consultants
Machinery related problem
Worker related problem

4.
Financial problem Seeking supports of financial institutions
Capital problem
Working capital problem

5.
Tax problem Hiring tax consultants
6.
Marketing problem Hiring good sales force

7.
Indulgence in fraud and cheating Non-indulgence in these activities

8.
Natural calamities Insurance and precautions

9.
Negligence of entrepreneur Precaution and partnership

10.
Government policies Devising alternatives

11.
Market competition Devising market research and planning.
• Wrong motivation

• Poor management

• No mentorship and lack of experience

• Failure to change with the times

• Inadequate goal-setting
 Successful Failures

• Walt Disney-
“You may not realize it when it happens, but a kick
in the teeth may be the best thing in the world for
you” .
• Henry Ford-
"Life is a series of experience, each of which
makes us stronger even though it is hard to
realize this. For the world was built to develop
character, and we must learn that the setbacks
and griefs which we endure help us in our
marching onward."