This topic is related to Business, which is Entrepreneurship development. It can refer by any technical & Management students. It is useful for B.Tech and MBA students under BPUT Syllabus 2014

2. Entrepreneurial success and failures
The business is started with the aim of achieving success but success is not always
guaranteed. Because business has to go always in uncertainty. A good entrepreneur should
be able to forecast such a situation and take appropriate steps to remain away from such
uncertainties or to convert uncertainties to certainties. Hence, success or failure in
entrepreneurship largely depends on the strength and weakness of the entrepreneur.
A business survives as long as there are customers for its products and services. It lives
on the faith of the customers. The reputation of a business and its product or services is
the foundation which is the main reason for the success of a business.
Success of an enterprise may be due to many reasons which can be broadly grouped in
two: internal reasons and internal reasons

3. Internal reasons
 Efficient management
 Quality goods and services
 Good reputation of the business and its products
 Good reputation of the entrepreneurs
 Low cost of production
 Effective marketing and selling network
 Proper financial management
 Dedicated manpower
 Appropriate technology
 Timely updating of products and technology
External Reasons
 quality manpower
 Increase in demand
 Availability of appropriate raw materials at affordable price
 Suitable government policies
 Low level of competition
 Opening of new markets
 Natural environment

4. Similarly, failure of a business may be due to many reasons which can be grouped into two
categories; internal reasons and external reasons.
Internal Reasons
 Ineffective management
 Obsolete /Outdated technology
 Poor financial management
 Ineffective sales and marketing
 Poor quality of products and services
 Higher cost of production
 Poor quality of inputs
 Poor industrial relation
 Low equity of human resource
 Improper leadership

5.  Shortage of raw materials
 Shortage of powers
 Shortage of quality manpower
 Shortage of finance
 Change in technology
 Change in taste, fashion, etc.
 High level of competition
 Reduction in demand
 Increase in supply
 Change in government policies
 Availability of better substitutes and alternatives
 Natural causes Strategic causes.
External Reasons