Failure Causes and Entrepreneurial Success
As previously noted, the success or failure depends on the ability of entrepreneurial private entrepreneurs. several factors that caused entrepreneurs fail to execute its new business.
A. In managerial incompetence. Not competent or do not have the ability and knowledge to manage the business is a major factor that makes the company less successful.
2. Less well versed in the technical ability, the ability to visualize the business, the ability coordinasi, human resource management skills, and ability to integrate the company’s operations.
3. Lack of financial control. So the company can succeed with either the most important factor is maintaining the financial cash flow. Manage the expenditure and receipts carefully. Errors in maintaining cash flow would hinder the company’s operations and result in the company is not smooth.
4. Failed in the planning. Planning is the starting point of an activity, once the plan fails then it will have difficulty in implementation.
5. Location as insufficient. Strategic business location is a factor that determines the success of the business. Strategic location that is not a factor in the success of the business. Location can lead to companies not strategis difficult to operate due to less efficient.
6. Lack of surveillance equipment. Supervision is closely related to the efficiency and effectiveness. Less supervision can lead to the use of inefficient and ineffective.
7. Attitudes that are less serious in the attempt. Attitude toward the business half the work done will lead to instability and failure. With a half-hearted attitude, likely to be a big failure.
8. Inability to perform intermediate / transition entrepreneurship. Entrepreneurs who are less prepared to deal with and make changes, it will not be a successful entrepreneur. Success in entrepreneurship can only be obtained when the courage to make changes and be able to make the transition all the time.
In addition to the factors that make entrepreneurship failure, some of the potential that makes a person withdraw from the entrepreneurship, namely:
A. Income is uncertain. Either at an early stage and growth stage, the business is no guarantee to obtain a sustainable income. In entrepreneurship, at times can be lost and at times can also be profitable. Uncertainty can make a person withdraw from entrepreneurial activities.
2. Losses due to loss of investment capital. The failure rate for new businesses is very high. the mortality rate / failure of small businesses in Indonesia reached 78 percent. Backed by investment losses resulting from the activities of self-employed person. For an entrepreneur, failure should be viewed as a valuable lesson.
3. Need to work hard and long. Self-employed entrepreneurs usually start from the purchase, processing, sales, and bookkeeping. A long time and must work hard in entrepreneurship resulted in people wanting to be entrepreneurs into retreat. He is less accustomed to the challenge. Successful entrepreneurs usually make the challenge as an opportunity that must be faced and occupied.
4. Low quality of life despite its steady. Quality of life that does not immediately increase in business, will lead a person back from entrepreneurial activities. For example, traders who do not increase the quality of life, it will retreat from its trading business and into other businesses.