MINI RESEARCH

CREATIVE ENTREPRENEURSHIP
“Analysis Of The Factors Causing The Failure Of The Food
Stall Business"

Arranged by:

Juniarti Simbolon
Therecia E. Sihotang
Nur Ainun Lubis
•
• INTRODUCTION
• The Background of The Study
• Fail business sure can be assumed when the actions of the business environment c
ause small business operations to cease and/or the business closes down without a
chieving its goals. Yeo argues (2002:241), failure factors are obstructive issues that
may arise from the business internal and external environment and that have a nega
tive impact on the performance of a business. This paper aims to determine the fact
ors that cause the failure of food stall.

• The Problems of The Study

• What are the factors that cause food stall businesses to fail?
• Why don't food stall Entrepreneurs start over their business?

• The Objectives of The Study

• To find out the factors that cause the failure of food stall businesses.
The Scope of The Study
The study is focused on the former food and coffee stall entrepreneurs, totaling ten people
and the factors that cause the stall's business to fail.

The Significances of The Study

The findings of the study are expected to be useful of the readers both of in theoretically and
practically as follows:
1. Theoretically, The finding is useful for applying theory or information on the causes of the
failure of a stall business to be applied to the phenomenon of failure to establish a
business.
2. Practically, The findings will be used as information for people who want to start or are
running a business so that this information can be studied for future improvement of
entrepreneurship.
 
• METHODOLOGY
• Subject of the Research
• The subjects of the study were former food stall entrepreneurs, totaling ten people. The
focus in this study is the factors that cause the food stall's business to fail.

• Data Collection Technique

• The technique of collecting data is by conducting interviews with 10 former entrepreneu
rs of the food stalls. The data collection technique was the researcher asking directly to
the informants about the factors that caused the failure of their business.

• Data Analysis Technique

• The data analysis technique used in this study is the qualitative analysis. Researchers r
educe data or summarize, choose the main things, focus on the things that are importa
nt. The main form of data presentation is a narrative that describes the results and disc
ussion of the research.

• Research Instruments
• In this study, the main instrument used is notes and is supported by a recording device.
• RESULTS AND DISCUSSION
• Results
• The following are the results of research through interviews with former food stall entrepreneurs:

• Informant 1: Limited Funds and No more buyers or consumers

• Informant 2: No consumers/buyers
• Informant 3: Lack of understanding of business and Weak financial control
• Informant 4: Lack of understanding of business
• Informant 5: Customer disloyalty / buying to another stall / no more buyers
• Informant 6: Poor inventory control
• Informant 7: Weak financial control and Limited funds
• Informant 8: Limited funds
• Informant 9: Lack of Understanding in Procurement and Maintenance of Raw Materials
• Informant 10: Limited funds

• From the research we have analyzed, there are several reasons why food stalls Entrepreneurs don't start over their business.
1. Inadequate work planning
2. Afraid to take the risks they will accept if they fail
3. Fear of failure on the steps they took
4. Unconfident to make changes and challenges in trading
• Discussion
• There are 6 factors from all the answers that make their food stall business fail.
• 1. Limited Funds
• This was experienced by five informants.  From the results of the interviews, it was co
ncluded that they failed to calculate how much money was needed to turn the wheels
of the business as long as they were not in production.  
• 2. No more buyers or consumers
• From the results of the interview, the absence of buyers happened to 3 informants. T
his is due to the emergence of new competitors whose products are much more num
erous and varied.  This makes buyers more interested because there are many choic
es.  
• 3. Lack of understanding of business
• The lack of understanding of business was experienced by two informants.  They sai
d that they opened their business without any knowledge of what products would attr
act customers and so on.  They simply open a business only because of coercion fro
m the people around them.  
• 4. Lack of Understanding in Procurement and Maintenance of Raw Materials
• An informant said that he failed to maintain his food stall business because of the hig
h costs of buying materials to produce.  This is due to the purchase of too many raw
materials (which are not actually needed) and not understanding how these raw mate
rials can be maintained, as well as the lack of understanding about the frequency of t
he community's daily and weekly needs for materials to be produced.

• 5. Weak financial control

• From the interview results, two informants experienced weak financial control. The ca
sh flow picture for their business is not clear. They fail to understand how much cash f
low is generated by day-to-day operating activities.

• 6. Poor inventory control

• From the results of the interview, the end of the business of one of the informants wa
s caused by his weak control over production inventory.  Insufficient inventory levels e
ventually result in shortages and out of stock which causes customers to feel disappo
inted and turn to other places.
•  
• Conclusion
• In this research, there are 6 factors from all the answers that
make their food stall businesses fail. The most mentioned fac
tors are "Limited Funds", the next is "No Consumers/Buyers"
, then “Lack of understanding of business”, "Weak financial c
ontrol”, “Lack of Understanding in Procurement and Mainten
ance of Raw Materials ” and “Poor inventory control.”
•
SUGGESTION

Based on the discussion and conclusions that have been stated previously, if th
ey want to develop their businesses actually they are not only required to have hi
gh education, but also have a networking or work networks, innovate, and chang
e mindsets or ways of doing things. Prospectively, they have a spirit to move for
ward and efforts to develop business the it can also be carried out by referring to
the findings of Kuncoro (2010), he argues that business development can be star
ted by increasing production equipment, efficiency, and productivity through a wo
rk system aimed at improving the production process.
THANK YOU...