What are the major causes of small-business failure? Do these causes also apply to larger businesses?

Question

Business

Tyrell Medina

14 February, 05:33

What are the major causes of small-business failure? Do these causes also apply to larger businesses?

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Answers (1)

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Piper Castro · Answer 1

Lack of funds and management.

Explanation:

We are asked to determine the the major causes of small-business failure.

We know that lack of funds or money is main cause of small business failure. In the startup phase small companies face challenges in obtaining funds to bring a new product to market.

The second cause is the lack of management. A strong management team is must for a successful business.

It is possible that these causes will apply to larger businesses, but not always a must. Since large businesses have more money to support them, so these causes are less applied to larger businesses.