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The top 10 reasons of why most small businesses fail

Precious Mvulane

By Precious Mvulane

Why do small businesses fail? Business failure isn’t something you want to think about when you start a business. But  if you want your business to succeed, you need to know, and avoid, these  top 10 common reasons why businesses fail.

  1. inadequate business planning
  2. insufficient capital
  3. lack of management experience
  4. poor positioning
  5. poor inventory and cash flow management
  6. over-investment on fixed assets
  7. poor credit arrangements
  8. personal use of business funds
  9. competition or lack of market knowledge
  10. low sales or not pricing properly.
The top 10 reasons of why most small businesses fail

Sources : Small Capital with Microsoft, Mweb, Standard Bank

Including SAICA reports

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