The document summarizes common reasons why entrepreneurs fail, including lack of proper planning, inadequate financial or marketing strategies, production problems, and failure to adapt to changes. It also discusses administrative issues like poor management, labor problems, and lack of technical skills. The conclusion emphasizes that failure provides learning opportunities and success depends on applying lessons from past failures to avoid common pitfalls within an entrepreneur's control.

1. WHY DO ENTREPRENEURS FAILS? N-Axis Software Technologies Pvt.Ltd

2. CONTENT Introduction Reasons for failure Administrative problems Financial problems Marketing problems Production problems Pitfalls by Peter Drucker Conclusion

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. REASONS FOR FAILURE Lack of a proper business idea Lack of preparation Flaws in the business plan Changes in the environment Competition

5. (CONTD)… 6. Changes in government laws 7. Failure to predict the end of the product life cycle 8. Lack of finance 9. Labour unrest 10.Rapid expansion

6. ADMINISTRATIVE PROBLEMS Lack of proper planning Poor project implementation Poor management Labour problems Inadequate of technical skill

7. (CONTD)… Low level of technical skill Lack of strategies Problem of inadequate infrastructure Lack of scientific & industrial research Bureaucratic red tape & regulations

8. FINANCIAL PROBLEMS Access to & usage of long-term capital Access to working capital Recovery of debts Taxation Cash flow

9. MARKETING PROMBLEMS Lack of knowledge about market situations & composition Heavy competition from larger players Inadequate/improper branding

10. (CONTD)… Poor after sales service Problems in distribution Poor advertising/inadequate advertising Improper sales promotion activities

11. PRODUCTION PROBLEMS Raw material shortages Lack of proper capacity utilization Lack of proper quality control

12. (CONTD)… Lack of utility services or poor utility services Outdated technology Non standardized products & processes

13. INFORMATION TECHNOLOGY • Helps entrepreneurs work quickly and efficiently, provide attentive customer service, increase sales, and project professional images. • Entrepreneurs also produce and market products that apply new information technology. • Internet also presents a challenge because customers can check prices and buy online from large or small companies anywhere in the world.

14. PITFALLS BY PETER DRUCKER 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.

15. CONCLUSION Failure is an opportunity for learning. Business Success is dependent upon reactions of business failures Knowing what can go wrong is essential to avoid business failure Success and Failure exist in relation to expectations Most causes of failure are under the control of the entrepreneur. Entrepreneurs can avoid venture failures by managing known causes of failures which are under their control.

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