Factors Contributory to Why Some Business fail

Abstract

Knowing how one’s business may fail is significant to managing a new venture. It is important for a small enterprise to ensure success and continuous operation. Tantamount to learning how to make your business succeed, it is also of great interest to be aware of how their ventures might go wrong. Other than SMEs/SMBs, multinational companies are also prone to failure. These institutions must look deeply into financial and other relevant factors that are detrimental to their sustainable success. While established, already seasoned enterprises are no exemption. Unfavorable circumstances could have been prevented if facet of causal events is evaluated and discovered prior to its commencement. Review of existing researches about various business failures are done to be able to learn deleterious, factors that may be contributory to such, which must be considered at an early stage to prevent bankruptcy or loss of customers. Different quadrant of business may show an aspect to focus development or improvement, it may not be visible, but must be addressed immediately so as to prevent possible plunge in the pit. Financial management could be factors that could lead to such catastrophe, were evaluated that are relevant to improve corporate governance of an enterprise.