Business Failure
Why business fails
The desire of almost every Nigerian is to start up a business that they can control and call their own, no matter how small. Nigerians have always had a knack for entrepreneurship and regard themselves as great entrepreneurs, whether or not that is true is another issue. But we have seen some businesses start with some great enthusiasm and drive and before you know it, Kaboom... many great products have disappeared from shelves and warehouses because the companies that produce them went under.
Business failure is a global phenomenon and cannot be associated with Nigerians alone. It cannot also be analyzed from one focal point because, just like businesses fail for one reason or another, so do governments, social systems, economic systems and so on. The uprising in the Arab Nations that spread like wild fires and led to the sacking of various governments, the introduction of Boko-Haram and senseless bombings in Nigeria, the plunge in global capital market indices, debt situation of the biggest economy in the world and the ripple effects, the Nationalization of three commercial banks in Nigeria, the riots and looting in London, e.t.c are all testimonies of failed systems.
Business Failure can be examined from the perspective of Size, geography, economy, industry e.t.c. But fundamentally speaking, the reasons are not far-fetched and can be easily recognized. The problem is that most business owners see the problems, either don't understand them, or some are even pointed out by consultants, staff, or customers and the owners fail to act until the spiral continues and it is too late. Some of the reasons like lack of planning, no succession plan, poor record keeping and accounting system, cash flow problems, lack of knowledge about the business, greed, partnering with people of unlike minds, attrition, growing too fast out of control, etc
On this forum, I would like you to join me in looking at some of the common reasons why businesses fail,
The desire of almost every Nigerian is to start up a business that they can control and call their own, no matter how small. Nigerians have always had a knack for entrepreneurship and regard themselves as great entrepreneurs, whether or not that is true is another issue. But we have seen some businesses start with some great enthusiasm and drive and before you know it, Kaboom... many great products have disappeared from shelves and warehouses because the companies that produce them went under.
Business failure is a global phenomenon and cannot be associated with Nigerians alone. It cannot also be analyzed from one focal point because, just like businesses fail for one reason or another, so do governments, social systems, economic systems and so on. The uprising in the Arab Nations that spread like wild fires and led to the sacking of various governments, the introduction of Boko-Haram and senseless bombings in Nigeria, the plunge in global capital market indices, debt situation of the biggest economy in the world and the ripple effects, the Nationalization of three commercial banks in Nigeria, the riots and looting in London, e.t.c are all testimonies of failed systems.
Business Failure can be examined from the perspective of Size, geography, economy, industry e.t.c. But fundamentally speaking, the reasons are not far-fetched and can be easily recognized. The problem is that most business owners see the problems, either don't understand them, or some are even pointed out by consultants, staff, or customers and the owners fail to act until the spiral continues and it is too late. Some of the reasons like lack of planning, no succession plan, poor record keeping and accounting system, cash flow problems, lack of knowledge about the business, greed, partnering with people of unlike minds, attrition, growing too fast out of control, etc
On this forum, I would like you to join me in looking at some of the common reasons why businesses fail,