10 Causes of Technology Business Failure

byeno3

60 followers

6 years ago

10 Causes of Technology Business Failure

In business management, internal factors are responsible for 89% of causes of business failure. Between 75%-90% of all categories of business startups fail each year; 42% of firms lacked customer-product-market fit, 29% failed because of inadequate funding, and 23% lacked experienced founder/founding team members. No single issue is responsible for failure of new entrant entrepreneurs. Some issues work in tandem with lack of funding/experience leading to failed startups. Unaware of these common causes of failure, new entrant entrepreneurs may fail to work actively to identify and avoid them. Both existing and emerging business owners can learn of these causes and obviate business failure.

1. Capital constraint

2. Lack of customers

3. Lack of customer/product/market fit

4. Product rejection/ Poor marketing

5. Lack of appetite for business risks/passion/purpose

6. Excessive capital

7. Lack of resourcefulness

8. Immediate execution of business plan

9. Premature scaling

10. Lack of Innovation