Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Why Do ENTREPRENEURS Fail?

8,907 views

Published on

Please go though the PPT why do entrepreneurs fail?

Why Do ENTREPRENEURS Fail?

  1. 1. WHY DO ENTREPRENEURS FAILS? N-Axis Software Technologies Pvt.Ltd
  2. 2. CONTENT <ul><li>Introduction </li></ul><ul><li>Reasons for failure </li></ul><ul><li>Administrative problems </li></ul><ul><li>Financial problems </li></ul><ul><li>Marketing problems </li></ul><ul><li>Production problems </li></ul><ul><li>Pitfalls by Peter Drucker </li></ul><ul><li>Conclusion </li></ul>
  3. 3. Desire to be one’s boss Desire to succeed financially Desire for job security Desire for an improved quality of life Why people become entrepreneurs
  4. 4. REASONS FOR FAILURE <ul><li>Lack of a proper business idea </li></ul><ul><li>Lack of preparation </li></ul><ul><li>Flaws in the business plan </li></ul><ul><li>Changes in the environment </li></ul><ul><li>Competition </li></ul>
  5. 5. (CONTD)… <ul><li>6. Changes in government laws </li></ul><ul><li>7. Failure to predict the end of the product life cycle </li></ul><ul><li>8. Lack of finance </li></ul><ul><li>9. Labour unrest </li></ul><ul><li>10.Rapid expansion </li></ul>
  6. 6. ADMINISTRATIVE PROBLEMS <ul><li>Lack of proper planning </li></ul><ul><li>Poor project implementation </li></ul><ul><li>Poor management </li></ul><ul><li>Labour problems </li></ul><ul><li>Inadequate of technical skill </li></ul>
  7. 7. (CONTD)… <ul><li>Low level of technical skill </li></ul><ul><li>Lack of strategies </li></ul><ul><li>Problem of inadequate infrastructure </li></ul><ul><li>Lack of scientific & industrial research </li></ul><ul><li>Bureaucratic red tape & regulations </li></ul>
  8. 8. FINANCIAL PROBLEMS <ul><li>Access to & usage of long-term capital </li></ul><ul><li>Access to working capital </li></ul><ul><li>Recovery of debts </li></ul><ul><li>Taxation </li></ul><ul><li>Cash flow </li></ul>
  9. 9. MARKETING PROMBLEMS <ul><li>Lack of knowledge about market situations & composition </li></ul><ul><li>Heavy competition from larger players </li></ul><ul><li>Inadequate/improper branding </li></ul>
  10. 10. (CONTD)… <ul><li>Poor after sales service </li></ul><ul><li>Problems in distribution </li></ul><ul><li>Poor advertising/inadequate advertising </li></ul><ul><li>Improper sales promotion activities </li></ul>
  11. 11. PRODUCTION PROBLEMS <ul><li>Raw material shortages </li></ul><ul><li>Lack of proper capacity utilization </li></ul><ul><li>Lack of proper quality control </li></ul>
  12. 12. (CONTD)… <ul><li>Lack of utility services or poor utility services </li></ul><ul><li>Outdated technology </li></ul><ul><li>Non standardized products & processes </li></ul>
  13. 13. INFORMATION TECHNOLOGY <ul><li>•  Helps entrepreneurs work quickly and efficiently, provide attentive customer service, increase sales, and project professional images. </li></ul><ul><li>•  Entrepreneurs also produce and market products that apply new information technology. </li></ul><ul><li>•  Internet also presents a challenge because customers can check prices and buy online from large or small companies anywhere in the world. </li></ul>
  14. 14. PITFALLS BY PETER DRUCKER <ul><li>The better a man is, the more mistakes he will make, for the more new things he will try. I would never promote to a top-level job a man who was not making mistakes . . . otherwise he is sure to be mediocre. </li></ul>
  15. 15. CONCLUSION <ul><li>Failure is an opportunity for learning. </li></ul><ul><li>Business Success is dependent upon reactions of business failures </li></ul><ul><li>Knowing what can go wrong is essential to avoid business failure </li></ul><ul><li>Success and Failure exist in relation to expectations </li></ul><ul><li>Most causes of failure are under the control of the entrepreneur. </li></ul><ul><li>Entrepreneurs can avoid venture failures by managing known causes of failures which are under their control. </li></ul>
  16. 16. THANK YOU N-Axis Software Technologies Pvt.Ltd

×