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
July 23, 2019
Since small and medium-sized enterprises contribute a significant number in the economy, it is vital ...More
By Jaspreet Kaur
July 18, 2019
 Being an entrepreneur, one wants to have a fool-proof social media strategy, which can generate ins ...More
By Jaspreet Kaur
July 10, 2019
SVIC has mainly targeted Indian companies in technology and IoT niches namely, speech-tech firm, Gn ...More
By Jaspreet Kaur
July 04, 2019
As an entrepreneur starts thriving in the market, he gradually begins earning more than his usual r ...More
By Jaspreet Kaur
July 03, 2019
As India surpasses other countries in terms of Facebook’s usage, the social media giant has brought ...More
By Jaspreet Kaur
July 02, 2019
Presently, Ola electric has obtained $250 million from Japan-based conglomerate company, Softbank to ...More
By Jaspreet Kaur
July 01, 2019
According to data tracker, Venture Intelligence’s reports: in the current year, there are 292 deals ...More
By Jaspreet Kaur
June 24, 2019
The surfaced data, which SIDBI currently accessed, shows that the government-led programme has grant ...More
By Jaspreet Kaur
June 17, 2019
In the interim budget, which was held in February 2019, startup companies were inclusive of governme ...More
By Jaspreet Kaur
June 14, 2019
Seeing the growth of social commerce, Facebook has made its first-ever investment, besides acquisiti ...More
By Jaspreet Kaur
June 13, 2019
In the process, it is of prime importance for the company to play smartly and compute valuation accu ...More
By Jaspreet Kaur
June 11, 2019
Even after employing different investment approaches, investors don’t primarily follow investment le ...More
By Jaspreet Kaur