your password has been reset successfully, Please login again.

Why do small businesses fail to grow?

It is essential that entrepreneurs understand their mistakes and improve them so that their businesses could grow. Here are some reasons why small businesses fail to grow.
BY Akshay Arora
Feature Writer, BusinessEx
Mar 05,2018

In India, the numbers of small businesses operating are much more than the startups and the big companies. These businesses are operating for a long time but still, they were unable to grow. It is high time that entrepreneur realises what they did wrong and learn from it so that they can grow as they are supposed to be.

10 reasons why small businesses fail to grow are:

  1. Wrong reasons to start a business

    It is seen that entrepreneurs who start their business with passion and a proper market research often finds the success. But if a person starts to be his own boss, to earn money, etc are generally ends in failure. Most people start for the wrong reasons but also understand the market so they put their hard work and achieve their goals. So dont give up as there is still time to get back up and grow.

  1. Poor management

    Some entrepreneurs are unable to manage their team and functions in a different situation which puts the business in the weak spot. For example, an entrepreneur is delegating work to 10 employees but after some time he/she hire 10 more employees then he/she finds it difficult to manage them which will affect the business operations.

  1. Planning and Execution

    Making a plan is a difficult task as not anyone can do it because it needs proper research and idea which will help to bring the plan into action. Having a plan does not solve the problem as the actual problem is whether the execution is right or not. It is necessary that targets meet on time so that the business could grow.

  1. Employees

    Employees are the people behind business success; if you find the right employee for the right job then you will also find business development. But if you hire employees and give them the work in which they dont have any expertise then the business will suffer.

  1. Lack of networking

    Networking is the most crucial part as it helps the business grow so if you dont have a business network then you cant do everything on your own. If you want to create your business network then register on BusinessEx now.

  1. Work culture

    The working environment is also one of the biggest factors behind the business failure. If you make it harsh for employees to do their job then they will take casual leaves or wont be able to complete their work on time which will affect business growth. So it is necessary that working culture is friendly and there is no biasness.

  1. Location

    Business grows only when there is a need for the product and if you work in a location where there is demand then you will succeed otherwise visa versa. It is essential that you also check the competition in the location as it will affect both of your businesses.

  1. Technology

    In current times, technology has become the major source of growth. If your business has the old technology then it is obvious that others will do better. Having latest technology always helps a business grow but make sure you use it the right way.

  1. Insufficient funds

    Insufficient funding is the most common reason why a small business is unable to grow. But you can always secure funding from investors. There are a lot of investors available on BusinessEx platforms seeking to invest in small businesses like yours.

  1. Lack of knowledge

    Sometimes entrepreneurs dont have the skills to make the right decision as they lack knowledge of the market and business operations which leads to failure. The best way to avoid this is by getting a mentor on board. You can find mentors through online networking platforms like BusinessEx.

Please add your Comment
SIMILAR Articles
June 29, 2018
Failure is a part of being an entrepreneur but the ability to back up and try again makes a successf ...More
By Sanjana Surbhi
June 28, 2018
There are many such inspiring and motivational stories that will boost you to keep going. To get mot ...More
By Sanjana Surbhi
June 27, 2018
The more you know about where your time goes, the more you’ll be able to hold yourself accountable ...More
By Sanjana Surbhi
June 22, 2018
The key to any successful business is the ability to make right decisions ...More
By Sanjana Surbhi
June 20, 2018
Textile market place covers a wide range of cloth product and accessories such as fibre, yarn, text ...More
By Sanjana Surbhi
June 18, 2018
With changing technology, it is now possible to start almost all kind of business from home sooner t ...More
By Sanjana Surbhi
June 15, 2018
One of the many reasons for failure is that the entrepreneur themselves are unaware of the mistakes ...More
By Sanjana Surbhi
June 14, 2018
To manage an effective team, you must encourage your team and help them out with proper solutions ...More
By Sanjana Surbhi
June 14, 2018
Employees are the wheels of all the companies. You need to keep them motivated and for that you have ...More
By Sanjana Surbhi
June 13, 2018
Social media, a source of entertainment and an idea of time pass is now becoming an important tool o ...More
By Sanjana Surbhi
June 12, 2018
India is the third largest startup economy in the world but only 9 percent of the startup founders a ...More
By Sanjana Surbhi
June 12, 2018
Does work-life balance help people to be more productive. Work is definitely your priority but don’t ...More
By Sanjana Surbhi