Why businesses fail

Why do businesses fail? With all the effort people put into starting up businesses, you’d think more would succeed. But thousands of small businesses fail each year.

 A quick drive around the web reveals a lot of reasons why businesses fail:

I think it’s a mistake to say “fail”. Fail does not mean go bankrupt. Many people start up home businesses because they want to stay home with their children, supplement retirement income, generate multiple income streams, earn money on the side, satisfy a desire to moonlight outside their existing job, or indulge an interest in a particular field. When those businesses close up, they don’t necessarily “fail”. It often just means that the owners have moved on to a new stage in life. People become consultants and start home businesses for many reasons. Instead of focusing on how many close up shop, we should ask how many were satisfied with the outcomes.

Why businesses fail

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Chad Kellers says:

I never thought of it that way. Why businesses fail, I mean. Its more like why businesses don’t fail but evolve.