Prior assessment : What do you

think ?
Business Failure
By: Ms. Himani Kapoor
 Learning outcomes

• To understand the reasons why businesses fail

• To identify why new businesses are at greater risk

of failing
 Why 8 out 10 business fails?

• Lack of management skills

This is common cause of new business failure. It
includes:
a) Lack of experience
b) Bad decisions by management
c) Poor location decisions by managers
d) Recruit unskilled workers
VIDEO INCLUSION
 Contd..

• Changes in business environment

It includes risks and uncertainties in business market
such as :
a) New technology
b) Powerful new competitors
c) Economic recession
d) Change in government tax and regulations
 cont.

• Poor Cash and financial management

It includes shortage of cash in the business such as :
a) More expenses of business such as high rent
b) Failure of business plan
c) Low profit margins
d) Over expanding of business
 Contd.

• lack of
adequate
marketing and
publicity
are the other
issues that drag
down small
businesses
WRITING TASK