The causes of small business failure.

The causes of small business failure.

Besides the failure caused by a disaster or accident and health declining owners, managerial reasons first place. Lack of management skills for more jobs and complex, causing a lack of supervision and responsibility. Sometimes managers are not able to complete planning crazy little regard for market analysis, also did not have a workforce that can be counted on to be educated in order to grow. The elements of this management incompetence can be specified as follows:

1. Capital is not adequate.

2. Less profitable locations.

3. Buy too much.

4. Lack of inventory control.

5. Less favorable economic circumstances.

6. Expenses and liability costs are too great.

7. Do not take full credit calculation.

8. Not a good bookkeeping.

9. Conducting expansion too extravagant.

10. The responsibilities of the fixed cost is too great.