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What are the major reasons for small business failure?

In his book Small Business Management (published by West Publishing Co.), Michael Ames gives us the following reasons for small business failure:

  • Lack of experience
  • Insufficient capital (money)
  • Poor location
  • Poor inventory management
  • Over-investment in fixed assets
  • Poor credit arrangement management
  • Personal use of business funds
  • Unexpected growth

Gustav Berle in The Do It Yourself Business Book (published by Wiley Co.) adds two more reasons to Michael Ames' list:

  • Competition
  • Low Sales
     

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