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WHY DO ENTREPRENEURSFAILS?

N-Axis Software Technologies Pvt.Ltd

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CONTENT

Introduction

Reasons for failure

Administrative problems

Financial problems Marketing problems

Production problems

Pitfalls by Peter Drucker Conclusion

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Desire tobe ones

boss

Desire tosucceed

financially

Desire for

job security

Desire for an

improvedquality oflife

Why people become entrepreneurs

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REASONS FOR FAILURE

1. Lack of a proper business idea

2. Lack of preparation

3. Flaws in the business plan4. Changes in the environment

5. Competition

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(CONTD)

6. Changes in governmentlaws

7. Failure to predict the

end of the product lifecycle8. Lack of finance9. Labour unrest

10.Rapid expansion

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ADMINISTRATIVE PROBLEMS

Lack of proper planning

Poor projectimplementation

Poor management

Labour problems

Inadequate of technicalskill

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(CONTD)

Low level of technical skill

Lack of strategies

Problem of inadequateinfrastructure

Lack of scientific & industrialresearch

Bureaucratic red tape &regulations

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FINANCIAL PROBLEMS

Access to & usage of long-term capital

Access to working capital

Recovery of debts

Taxation

Cash flow

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MARKETING PROMBLEMS

Lack of knowledge aboutmarket situations & composition

Heavy competition from largerplayers

Inadequate/improper branding

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(CONTD)

Poor after sales service

Problems in distribution

Poor advertising/inadequate advertising

Improper sales promotion activities

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PRODUCTION PROBLEMS

Raw material shortages

Lack of proper capacityutilization

Lack of proper qualitycontrol

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(CONTD)

Lack of utility services or poor utility services

Outdated technology

Non standardized products & processes

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INFORMATION TECHNOLOGY

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

Entrepreneurs also produce and marketproducts that apply new informationtechnology.

Internet also presents a challenge because

customers can check prices and buy onlinefrom large or small companies anywhere in theworld.

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PITFALLS BY PETER DRUCKER

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

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CONCLUSION

Failure is an opportunity for learning.

Business Success is dependent upon reactions ofbusiness failures

Knowing what can go wrong is essential toavoid business failure

Success and Failure exist in relation toexpectations

Most causes of failure are under the control ofthe entrepreneur.

Entrepreneurs can avoid venture failures bymanaging known causes of failures which areunder their control.

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THANK YOU

N-Axis Software Technologies Pvt.Ltd