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««.

Poor execution No viable market Too much leverage Undercapitalizing the business Lack of competitive advantage 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 1. 2. 3. 4. 5. 6.

Reasons for Entrepreneurial Failure
1. Management related problems Inexperience Inefficient Lack of support 2. Individual problem Arrogance Lack of faith Behavioral problem 3. Production problems Insufficient technological know-how Power and water problem Product related problem Machinery related problem Worker related problem 4. Financial problem Capital problem Working capital problem 5. Tax problem

Remedial Measures
Training On job experience

Behavioral therapy Behavioral training for modification

Hiring professional plant engineers and industrial engineers Hiring professional management Hiring consultants

Seeking supports of financial institutions

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 youµ . ‡ 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."

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