Reasons for small business success and failure: Reflections of a literature review
Summary :
Table of Contents
- Introduction
- A review of the academic literature
- Reasons for business failure
- Reasons for greater chances of success
- Conclusion
- Works cited
Abstract
Within all major economies, the role of the small business is significant; as such it is important to understand the factors associated with why some small businesses fail and why others are successful. for the purposes of this paper we will assume that a small business is a for-profit enterprise which is owned independently and does not hold a dominant position in the broader industry. There is widespread agreement that a nation's prosperity is linked with the performance of its small businesses, as entrepreneurship creates jobs, develops innovation and creates wealth. Unfortunately though being a small business owner is not easy as there is a statistic in the United States which that more than 50% of small businesses fail in its first year of operation and 95% fail within the first five years of operation. (Dun & Bradstreet 2004). This is a loose statistic, but it speaks to the greater issue of most small businesses failing within a short period of time after inception.
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