WHY DO ENTREPRENEURS FAILS?

N-Axis Software Technologies Pvt.Ltd

CONTENT

• Introduction • Reasons for failure • Administrative problems • Financial problems • Marketing problems• Production problems• Pitfalls by Peter Drucker • Conclusion

Desire to be one’s boss

Desire to succeed financially

Desire for job security

Desire for an improved quality of life

Why people become entrepreneurs

REASONS FOR FAILURE

1. Lack of a proper business idea 2. Lack of preparation 3. Flaws in the business plan 4. Changes in the environment5. Competition

(CONTD)…

6. Changes in government laws

7. Failure to predict the end of the product life cycle

8. Lack of finance9. Labour unrest10.Rapid expansion

ADMINISTRATIVE PROBLEMS

• Lack of proper planning

• Poor project implementation

• Poor management• Labour problems• Inadequate of

technical skill

(CONTD)…

• Low level of technical skill• Lack of strategies• Problem of inadequate

infrastructure• Lack of scientific &

industrial research• Bureaucratic red tape &

regulations

FINANCIAL PROBLEMS

• Access to & usage of long-term capital

• Access to working capital

• Recovery of debts

• Taxation

• Cash flow

MARKETING PROMBLEMS

• Lack of knowledge about market situations & composition

• Heavy competition from larger players

• Inadequate/improper branding

(CONTD)…

• Poor after sales service

• Problems in distribution

• Poor advertising/inadequate advertising

• Improper sales promotion activities

PRODUCTION PROBLEMS

• Raw material shortages

• Lack of proper capacity utilization

• Lack of proper quality control

(CONTD)…

• Lack of utility services or poor utility services

• Outdated technology

• Non standardized products & processes

INFORMATION TECHNOLOGY

• Helps entrepreneurs work quickly and efficiently, provide attentive customer service, increase sales, and project professional images.

• Entrepreneurs also produce and market products that apply new information technology.

• Internet also presents a challenge because customers can check prices and buy online from large or small companies anywhere in the world.

PITFALLS BY PETER DRUCKER

The better a man is, the more mistakes he will make, for the more new things he will try. I would never promote to a top-level job a man who was not making mistakes . . . otherwise he is sure to be mediocre.

CONCLUSIONFailure is an opportunity for learning.Failure is an opportunity for learning.Business Success is dependent upon Business Success is dependent upon

reactions of business failuresreactions of business failuresKnowing what can go wrong is essential to Knowing what can go wrong is essential to

avoid business failureavoid business failureSuccess and Failure exist in relation to Success and Failure exist in relation to

expectationsexpectationsMost causes of failure are under the Most causes of failure are under the

control of the entrepreneur.control of the entrepreneur.Entrepreneurs can avoid venture failures Entrepreneurs can avoid venture failures

by managing known causes of failures by managing known causes of failures which are under their control.which are under their control.

THANK YOU

N-Axis Software Technologies Pvt.Ltd