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| "Bad Leadership causes FAILED" |
When one considers going into business, what comes to the mind is usually a Small or Medium Enterprises (SME). this is highly preferred because of the lower capitalization requirement and the facility in the registration of the business. SMEs are prone to failure. They are as follows:
- Poor Selection of Location
- Failure to diversity
- Mismanagement of the cash flow
- Going to business on a bandwagon
- Overdrive in the effort to succeed
- Excessive extension credit
- Employee Dishonesty
- 111-Health or Family Tragedy
- Failure to take insurance
- Poor human relations
- Renewal of the locality
- Loss of key personnel
- Entry of big business into the business
- Intramural quarrels among partners
- Dumping of cheap foreign goods into the local market
- Passage of unfavorable legislation
- Dying patronage of the product
- Prohibitive business rentals
- Failure to adopt quality assurance and total quality management
- Incompetence of management
- Failure to avail of cost-cutting measures
- Failure to adopt a marketing and advertising strategy
- Failure to take the option of merger
- Mixing personal matters with business operations
