If you are passionate about something but cannot monetize it, and yet you venture into it, then you are more of a charity organization that provides a service for no or minimal reward. Passion is a key to success in business but it cannot guarantee profitability. A well-organized and structured business in South Africa, Nigeria, or Kenya for example can be very profitable and more successful than a poorly organized business in the USA, UK, Canada, or even China.Īlso, no matter how passionate you are about an idea or a particular type of business you must research the business to ascertain if such type of business will be profitable in your chosen location.Īs it is, there is no business that is not profitable, but if your business is not located at a place that the product/service is required, it will not fly or be profitable. Your new startup can fail irrespective of your country’s ease of doing business. Some of the main reasons why businesses fail include, Financing Hurdles, Inadequate Management, Ineffective Business Planning, and Marketing Mishaps.”Ĭertain factors can cause business failure and lack of proper research for a profitable market before venturing is one of the main causes of business failure. There are many reasons why businesses fail and it all comes down to a combination of preparation, strategies, and knowledge. As for the remaining 4%, they don’t really succeed, they just survive. However, business failure is very common, about 25% of small new businesses fail in their first year, and a staggering 96% of businesses will fail over 5 to 10 years. Many entrepreneurs wonder how many businesses fail in the short or long run. We spoke to Adam C from Ignite SEO Consulting company, he has a lot of knowledge on the topic at hand and works with various small and big companies, he said, “Starting a business is not an easy task. Running a business is also not a child’s play. Owning a business can be rewarding and at the same time very stressful and risky. I will be putting you through the major causes of business failures and how you can avoid them.Īny entrepreneur starting a new business venture has PROFIT in the back of their mind. Well, you are about to find out what might have caused your new small business to fail. Have you started any business in time past but failed due to reasons not clear to you till now? Do you want to start a business but afraid of business failure?