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Reason For Failure and Visible Problem

Lacking feedback and communication between parties, insufficient internal control over the business, and poor team building can hinder entrepreneurship for a new business. Starting a new business also poses career risks for entrepreneurs if the business fails, as they may lose employment opportunities. Both external factors beyond an entrepreneur's control, like unfavorable government changes or industrial strikes, and internal factors they can address, such as a lack of experience, poor planning, or insufficient capital, can cause problems for new businesses.

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Aditya
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427 views

Reason For Failure and Visible Problem

Lacking feedback and communication between parties, insufficient internal control over the business, and poor team building can hinder entrepreneurship for a new business. Starting a new business also poses career risks for entrepreneurs if the business fails, as they may lose employment opportunities. Both external factors beyond an entrepreneur's control, like unfavorable government changes or industrial strikes, and internal factors they can address, such as a lack of experience, poor planning, or insufficient capital, can cause problems for new businesses.

Uploaded by

Aditya
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Lacking Feedback:–

In new business when feed back or


communication is not existing between
the various parties of a unit than there
will be a hurdle in entrepreneurship.
Absence of Internal control: –
Control over the business comes from
the internal side of the business
specially for a new entrepreneur. So
less internal control always be a
problem.
Team Building:–
A new business depends on the
coordination and team efforts
.lacking with team building always
be a problem for entrepreneur.
Career risk:—
loss of employment security can be
a problem for starting a new
business because if entrepreneur
don’t get success than he also
loosing an employment opportunity
for himself.
The external causes are beyond the
control of the industry & usually effect
the industry group as a whole.
Non-availability of raw-material

Unfavorable change in govt.


Industrial strikes, etc.

Irregular supply of vital inputs such


as power, water, etc

Fiscal irregularities
The internal causes are within the
control of the industry.
Shortage of working capital
Lack of Industry Experience
Poor Business Planning
Lack of Entrepreneurial Skill
Extending too much credit and poor
credit control
Lack of control on key areas like
management, finance, inventory,
etc.

An improper demand forecast for the


products to be sold.

Wrong choice of technology, wrong


location etc.

Poor pricing strategies


Inability to reach decisions and act on
them

Poor personnel relations

Poor relations with suppliers

Lack of quality processes


Poor customer relations

Failure to anticipate market trends

Failure to promote and maintain a


favorable public image

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