Why Do Small Businesses Fail And How To Minimize Risk Finance Essay

Why Do Small Businesses Fail And How To Minimize Risk Finance Essay Abstract It has been suggested that the impact of potential causes of small enterprise failure might be reduced if business owners got appropriate advice. This paper reports the results of a national study of small retail and service firms to determine the failure reasons of starting a business. Much of the literature indicates that success and failure of small businesses has a lot to do with preparation of the business owner. People who establish a plan for success are usually the people that have better chances of success with their small businesses.The primary audience for this paper are people who are considering starting their own business. A review of the literature was conducted to determine reasons for business failure. The paper concludes with suggestions of how might build on these efforts. Table of Contents Introduction P.4 2.0 Hypothesis Development P.5 3.0 What is business failure? P.5 4.0 Literature review 5.0 Method 5.1 Research Design 6.0 Statement of Results 7.0 Analysis and Discussion 8.0 Conclusion 9.0. Recommendations 10.0 References P. Introduction More and more people are considering starting their own business. By opening a business there could be large profit to be made. However, there are losses may occur as well. Some peoples argued that starting a business in a field that they know well would not fail. Knowing if starting a business at all is what most small businesses fails to consider. According to an SBA Study done in 2005, About 1/3 of Small Businesses fail in the first 2 years, and just over half fail within 4 years. (as citied in Shawn, 2009). These statistics are depressing for people looking to start up a new venture. Richard (2000) claimed SMEs in successful business networks can generate up to 50% more in gross revenues than firms that work in solitude. (p.12). However, Richard (2000) concluded that the most significant reason for this high failure rate is the inability of SMEs to make adequate use of essential business and management practices. (p.12). Abdelsamad and Kindling (1978) stated that although failure s cannot be completely avoided in a free enterprise system, the failure rate could be reduced if some of its causes are recognized and preventive action is taken. (p.24). It is important that small business owners evaluate if they are compatible with entrepreneurship in order to prevent from being part of the failure statistics. Most of the studies on business failure have been elaborated into a predictive perspective. Those business failure prediction literatures mainly analyses statistical models that tend to determine. Moreover, the predictive literature has strong limitations and it provides few clues as to why and how business failure takes place. In fact, predictive studies propose a classification of firms in a default and credit risk management perspective without giving any concrete information about the potential causes of their failure. With tough economic conditions, knowing the reasons business fail and how to avoid failure can increase your chances of success. The results of this study will benefit entrepreneurs to understand the factors of failure involved in new venture startup, to help entrepreneurs to balance between expectation and reality in the process of starting the businesses. The aim is to let business owners know more about preventive measures to avoid such failure and improve chances of success with good preparation and planning and insight. A brief literature review is presented in the next section, followed by the description of the sample and methodology, results and implications, and finally the summary and conclusions. Hypothesis Development People keen on starting a small business sometimes forget about the managerial and entrepreneurial skills necessary to run a business. According to Steiner and Solem (1988), key success factors in small manufacturing businesses would include an owner/manager with experience in the business or prior experience; adequate financial resources; a competitive advantage based upon customer and product specialization; and strategic planning.(p.5). (as citied in Linda Shonesy Robert D. Gulbro ,1998).When going to start a successful small business, you are required to have expertise in business planning, financial management, marketing, human resources management etc. Business knowledge should be on the top of any requirements for small business success. If you dont know anything about the products, how can you sell the products to customer? You can acquire this knowledge through trial and error when starting a small business, but you will probably have to declare bankruptcy before you learn them all. My theory is that lack of entrepreneurial skill is the main reasons of small business fail. Many people think the business would not be failed if resources provided, such as capital and manpower. Of course, financial management and business planning are also absolute necessities for being a successful entrepreneur. Certainly, you are unable to satisfy customers without these skills. In brief, the question is, however: is entrepreneurial skill the most important factor to prevent business failure? What do we mean by Small Business? Every country has own definition of small business. Some of them defined for different business sectors or industries, while some determined by number of employees. Typically, definitions are based on the number of people employed. For example the traditional definition in Germany had a limit of 500 employees, while in Belgium for 100. In the United States, small business is defined by the number of people employed and it refers to less than 100 employees. There are lots of different definitions of small and medium sized firms. In the recent literature, there is nevertheless a large tendency to differentiate between micro, small and medium size firms. Medium sized firms have a structure and an organization that tend to be closer to the ones of large firms and as the impact of human and psychological factors is less important in these firms than in smaller one. This research is based on the definition of small businesses adopted by the European Commissions definition (2003). Table 1 summarizes the criteria which delineate small business. Enterprise category Headcount Turnover or Balance sheet total medium-sized à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 50 million à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 43 million small à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 10 million à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 10 million micro à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 2 million à ¢Ã¢â‚¬ °Ã‚ ¤ à ¢Ã¢â‚¬Å¡Ã‚ ¬ 2 million Table 1: Definition of Small and Medium sized Enterprises (European Commission, 2003) Definition of Business failure We have to consider the meaning of the business failure concept during the research. Some researchers defined their meaning of failure as bankruptcy, while some researchers defined as discontinuance of a business for any reason. The concept of business failure has been differently defined according to the context and the characteristics of the sample of firms. Business entity does not follow the rules and achieves the goals set forth in their business firm, as a result, earning an adequate return and may caused discontinue existence. Business firm stops working due to retirement or businesses are sold for a profit without leaving any liabilities are not classified as a failure. According to Bruno Leidecker (2001), no two experts agree on a definition of business failure. Some conclude that failure only occurs when a firm files for some form of bankruptcy. Others contend that there are numerous forms of organizational death, including bankruptcy, merger, or acquisition. Still others argue that failure occurs if the firm fails to meet its responsibilities to the stakeholders of the organization, including employees, suppliers, the community as a whole, and customers, as well as the owners. (p.51-52).In this paper, business failure is considered as incapability of business firm to maintain due to loss of capital. Literature review There are many studies to better understand business failure. However, according to Gaskill, Van Auken and Manning (1993), there are many questions still to be resolved and warrant additional explorationprevious studies do not provide a comprehensive or unified explanation for small firm failure.(p.10) (as citied in Robert, 1996). Why some businesses fail and why some succeed is a matter of debate, although there are some common mistakes that can sink a business in no time. One key area that small business owners often overlook is the importance of planning. Dennis (2001) found that management skills could ensure that small and medium sized enterprises are better prepared to compete in domestic and international (p.52). It is required to know what kinds of planning you should do before starting the small business. It includes unplanned financial management and unplanned marketing research. The results of failure are many; however, no one is concerned on it. Therefore, the researchs p urpose is to discuss the significant reason of why small business failure. Poor Business Planning Small businesses often face variety of problems according to their size. Research indicates that poor planning is responsible for most business failures. Doug  Ã‚  Derek (2006) found that the single largest barrier to succession can be identified as those who do not have a succession plan.(p.308). People work hard to turn small businesses into successful enterprises. However, they have no plan for what will be happened to their business. Cause of bankruptcy often a result of poor planning rather than economic conditions.Most of the business owners who do not have succession plan indicated that it is too early to plan. However, Doug  Ã‚  Derek  (2006) found that professional advisers indicated it is never too early to start planning. (p.308). In contrast, it is a barrier to overcome if succession occurs over a short period of time. It is inadequate time for the business owner to plan and execute. Another reason why small businesses fail is poor planning of both finances and future growth. According to the Small Business Administration and the US Department of Commerces statistic, businesses that fail because their principals cannot, or do not, use financial information appropriately. (as citied in Brian, 2003).Some business owners often lack of the necessary start up funds and cannot come up with adequate financing. Business owners have to arrange adequate money on hand to cover all your financial needs of the business before starting their small business. Also, it is required to calculate how much money needs to carry out daily living expenses and how much money is required to run your business. Furthermore, some of them have no cash and expect either a bank to provide financing. They wrongly assume the banks will provide them with financing based only on their good ideas. But in most instances, the banks would not take into consideration as it reflects poorly the persons ability to manage finances if has no cash. And also, owners cannot ignore the demands of new ven ture. Many business owners do not know what they need to know and lack of the capital to hire experienced business advisors. Poor Financial Management Small business financial management is a vital aspect of growing a company. According to Mark H. Friedman, founder of Real Time Strategy, Small-business owners live and die for cash flow. (as citied in Nancy , 2006). The most important thing is the monitoring of working capital. This includes accounts receivables, accounts payable and especially cash on hand. Once lack of adequate working capital would affects the particular business. When business is going really well with cash coming in, small business owners tend not to prepare for the next round of business. And cash flow problem occur. Cash flow is a basic measure of a firms ability to maintain sufficient funding to pay off its current liabilities. The owner should know companys bottom line and make good decisions. They should take control of finances by coming up with a budget before purchasing or investing. In order to avoid overspending and hence invest effectively, small business owner should stabilize their cash flow. With this approach can ease a cash crunch, it also can increase the value of the business. Most business owners raise capital from banks. However, Daniel   Richard (2005) found that early stage capital is often the most difficult to raise. (p.64). In fact, it is difficult to raise the capital required in order to properly launch and sustain a business. It will be high cost even if the capital is available. It is crucial for a new business to maintain sufficient resources especially the capital because without proper financing, a new enterprise may find it difficult to compete with competition. The owners have to know how banks approves loan before submitting an application. Financial advisors can help in this situation. gd Lack of Entrepreneurial Skills Most of the peoples think that all it takes to run a business is money. That is not true. You could be an excellent salesperson but lack the skills to handle the seemingly mundane day-to-day skills needed to keep a business running. Entrepreneurs wont make money if cant sell products. Mostly during the startup phase of a new business, lack of entrepreneurial skills in an owner can cause a business to fail. This may not be true during the later growth and maturity periods of business where more administrative and management skills are required. A small firms performance outcome is a function of many variables, including individual owner characteristics, owner behaviors, and environmental influences. Entrepreneurs generally have a high need for achievement and social awareness, and they are high risk takers. Consequently, the personal and personality characteristics of an owner can be a cause of business failure. 5.0 Methodology Subjects 5.1 Research Design Data and Sample Instruments Procedure Data Collection 6.0 Statement of Results 7.0 Analysis and Discussion 8.0 Conclusion 9.0. Recommendations

Rheumatoid Arthritis Essay

Rheumatoid arthritis (RA) belongs to a class of autoimmune disorders that cause chronic joint inflammation as well as inflammation of the tissues surrounding the joints (Goronzy & Weyand, 2001, p. 55). Other organs in the body are also affected when the cells fail to differentiate self from non-self. The failure of the immune cells to differentiate the body’s own cells from the foreign or intruding cells leads to autoimmunity where the immune cells attack the body’s own cells. Usually, the immune system is organized in a way that it seeks and destroys the body’s invaders particular the pathogens. The antibodies in patients with autoimmune diseases always target the body’s own tissues and cause inflammation. The effects resulting from the self-attack spreads to multiple body organs and this condition is commonly referred to as rheumatic arthritis (Arthritis Foundation, 2010). Epidemiology Rheumatoid arthritis is perhaps the commonest of all rheumatoid diseases and it affects about 1. 3 million people in the U. S alone (Arthritis Foundation, 2010). Women are three times as riskier than men to be afflicted by the disease although the disease is common among all races in equal magnitude (Clair, Pisetsky, & Haynes, 2001, p. 1). The numbers of women suffering from rheumatoid arthritis are currently on the increase despite the recorded decline in numbers a few decades ago. The use of contraceptive pills containing insufficient estrogen as birth control measures has been blamed for the reduced immunity among women thus the increased cases of RA (Clair, Pisetsky, & Haynes, 2001, p. 5). Environmental factors such as cigarette smoking are also to blame for the increase in disease cases among women. Although the general smoking rates have declined in the United States, the rates of women smokers, separately considered, have not declined though. While genetic factors such as the role of human leukocyte antigen (HLA) DRB1 alleles have for long been suspected to cause aberrations in proteins in immune cells, this has not been proved yet (Clair, Pisetsky, & Haynes, 2001, p. 5). The risk among women has also been linked to the deficiency of vitamin D. Rheumatoid arthritis usually afflicts individuals of a wide range of ages although it is commonly begins after one has attained the age of 40 although it is rare beyond the age of 60 (Silman & Pearson, 2002, p. 267). It has also been shown that rheumatoid arthritis can occur in multiple members of the same family. This observation suggests the propensity that the disease is inheritable (Goronzy & Weyand, 2001, p. 55). A specific gene is suspected to be the underlying reason for the strange behavior of the immune cells attacking the body’s own cells. Pathophysiology and Pathogenesis Arthritis refers to some form of inflammation that occurs at the joints. Joints are points where two bones join each other and are critical for locomotion process. Rheumatoid arthritis results to the inflammation of the joint which is accompanied with severe pain, swelling, redness and stiffness in the joints. Rheumatoid arthritis can also lead to severe inflammation in tissues surrounding the joints such as ligaments, tendons and muscles. Chronic inflammation in some patients with rheumatoid arthritis can result into complete destruction of the bones, cartilage and ligaments thus leading to serious joint deformities. Usually, destruction of the joints can occur in early stages if development but gets worse as one advances in age (Arthritis Foundation, 2010). The main cause of RA is not well known although bacteria, viruses and fungi have for long been in the suspect list without any of the biological agents been proved. As for this reason, intensive research efforts are being invested in the identification of the causal agents for RA. Genetic causes and environmental infectious agents have been associated with the deranged immune system which goes out of control and attacks the body’s own cells (Goronzy & Weyand, 2001, p. 55). The deranged immune system results into massive joint and organ inflammation which leads to rheumatoid arthritis. The common organs affected include the eyes and the lungs. Specifically, the activation of lymphocytes marks the start of the process of inflammation. In the inflamed cells, a number of chemical messengers are expressed including the interleukin-1 (IL-1), interleukin-6 (IL-6) and tumor necrosis factor (TNF) (Gupta & Fomberstein, 2002, p. 3). Symptoms of Rheumatoid Arthritis Patients suffering from rheumatoid arthritis experience episodic inflammatory symptoms depending on the extent of individual tissue inflammation. The disease is overly active following extensive tissue inflammation and becomes inactive after inflammation has subsided. The condition undergoes remission following treatment or spontaneously and this can last for several days to years. In remission stage, patients feel well again until the conditions flares (return of symptoms and course of the disease). Active symptoms of RA include energy loss, lack of appetite, fatigue, joint and muscle pain, stiffness and low-grade fever. The reddening and swelling of the joints at the point of inflammation is indicative of RA. The joints also become tender and overly painful and the synovium, which is the tissue lining the joints, gets inflamed leading to overproduction of joint fluids or synovial fluid (Clair, Pisetsky, & Haynes, 2001, p. 26). The inflammation of the synovium (synovitis) results mainly from its thickening. A number of organs and other body parts are affected in rheumatoid arthritis because the disease is a systemic condition. Specifically, the disease affects several body joints which are inflamed in a symmetrical manner mainly involving the small joints of the wrist and the hands (Clair, Pisetsky, & Haynes, 2001, p. 12). The wrists and the hands are affected and the patients afflicted by the disease get it difficult to even open jars and turn door knobs. RA also affects a number of small joints of the feet. However, when a single joint is affected, the arthritis presents as joint infection or gout. Damage to tissues, bones and cartilages results from chromic inflammation and this can eventually lead to a complete cartilage loss and bone and muscle weaknesses and erosion. Joints will become deformed, destroyed or may completely lose function. The vocal cords can be affected to a level of influencing the voice tone. The effect to the cricoarytenoid joint has been suggested to influence the voice tone and cause voice hoarseness of the afflicted individuals. Inflammation of the glands located in the mouth and eyes often cause dryness, a condition known as Sjogren’s syndrome. Chest pain associated with shortness of breath, deep breathing or coughing results from pleuritis or the inflammation of the linings of the lungs (Clair, Pisetsky, & Haynes, 2001, p. 18). Lungs tissues may become scarred, inflamed or rheumatoid nodules may form in the lungs. The pericardium or the tissues that surround the heart may become inflamed (pericarditis) and lead to massive chest pain especially when afflicted individuals lean forward or lie down (Clair, Pisetsky, & Haynes, 2001, p. 19). The total erythrocytes and leucocytes count immensely reduces and a reduction in red blood cells leads to anemia while a decrease in leucocytes results to the enlargement of the spleen, a condition known as the Felty’s syndrome (Clair, Pisetsky, & Haynes, 2001, p. 17). The region around the fingers and elbows may experience firm lumps known as the rheumatoid nodules (Clair, Pisetsky, & Haynes, 2001, p. 16). While rheumatoid nodules do not lead to any significant symptoms, they can be infected occasionally. In RA patients, the nerves may become pinched around the wrist area and result to carpal tunnel syndrome. While it is rare for patients to suffer from vasculitis, the condition is one of the serious complications associated with RA and can totally impair the supply of blood to the tissues and lead to necrosis or tissue death. In vasculitis, tiny black spots around the beds of nails or ulcerations of the legs are commonly visible. Treatments To date, there is no specific known treatment for rheumatoid arthritis. However, modern interventions have been directed towards reducing pain and inflammation of the joints and maximizing the functioning of the joints. With proper management such as X-ray monitoring, the damage to joints and improvement of joint functions can be achieved. A combination of medication, sufficient rest, joint protection, patient education and exercise to strengthen the joints has been proved effective (Clair, Pisetsky, & Haynes, 2001, p. 146). The treatment plan is not uniform among all patients but depends on the disease activity, general health of the patient, the age and occupation of the patient and the type of joints affected by RA. In all the treatment plans, there should be total cooperation between the patient, doctor and the family members. There are two main classes of drugs used in the management of RA: the first-line drugs or the fast-acting drugs and the second-line or the slow acting drugs. Among the first-line drugs include aspirin and corticosteroids such as cortisone which are used in the management of joint inflation and pain. Second-line or slow acting medications, also known as disease-modifying antirheumatic drugs (DMARDs) include agents such as methotrexate, hydroxycholoroquine and gold (Arthritis Foundation, 2010). These agents increase the chances for disease remission and prevent any progressive destruction of the joints but do not act as anti-inflammatory agents (Arthritis Foundation, 2010). Since the level of destructiveness from RA varies with individuals, treatment options also differ among individuals. For instance, patients with less destructive forms of RA can be advised to have sufficient rest or given analgesic or anti-inflammatory drugs to manage the condition. Second-line medications can be administered in a timely manner to improve the function and minimize joint destruction and disability within a short period following disease diagnosis. However, a great percentage of individuals suffering from aggressive form of RA require second-line drugs like methotrexate as well as the anti-inflammatory drugs. Different second-line drugs can also be given in combination regiment. In severe deformities of the joints, surgical procedure may be recommended to correct the deformities (Arthritis Foundation, 2010).

Pegomastax - Facts and Figures

Name: Pegomastax (Greek for thick jaw); pronounced PEG-oh-MAST-ax Habitat: Woodlands of southern Africa Historical Period: Early Jurassic (200 million years ago) Size and Weight: About two feet long and five pounds Diet: Plants Distinguishing Characteristics: Prominent fangs; short bristles on body About Pegomastax Some of the most notable dinosaur discoveries dont involve going out into the field with a shovel and pickax, but examining long-forgotten fossil specimens that have been filed away in dank museum basements. Thats the case with Pegomastax, which was recently named by Paul Sereno after he examined a neglected collection of fossils from southern Africa, which had been discovered in the early 1960s and stashed in Harvard Universitys extensive archives. Pegomastax was certainly an odd-looking dinosaur, at least by the standards of the early Mesozoic Era. About two feet long from head to tail, this close relative of Heterodontosaurus was equipped with a parrot-like beak studded by two prominent canines. The porcupine-like bristles that covered its body are reminiscent of the short, stiff, feathery protrusions of another herbivorous dinosaur, the late Jurassic Tianyulong, which was also an early ornithopod of the heterodontosaur family. Given its presumed plant-eating diet, why did Pegomastax have such sizable canines? Sereno speculates that this feature evolved not because Pegoamastax snacked occasionally on insects or rotting carcasses, but because it needed to a) defend itself against larger theropod dinosaurs and b) compete for the right to mate. If longer-toothed males were more likely to survive predation, and also more likely to attract females, you can see why natural selection would have favored Pegomastaxs fangs.

How Linguistic Ethnographers Blommaert And. Borba...

In the present essay, we have seen how linguistic ethnographers Blommaert and Borba conceptualize ethnographic research in their two works, what function language had in the observed, situated interactions and how it was approached to further investigate larger frameworks. Besides the more technical aspects, we have seen that in both accounts, language plays a crucial role in the reproduction of inequality and some sociologic and ethnographic concepts, when applied to observation of linguistic forms, can help to grasp the larger structures regimenting institutional practices. 2 Source : http://www.Colorado.EDU/English/ENGL2012Klages/1997foucault.html Student number: 1568114 14 Overall, the two accounts are not incompatible, even if they†¦show more content†¦Student number: 1568114 15 REFERENCES Androutsopoulos, J. (2014) Mediatization and Sociolinguistic Change. Berlin-Boston: Walter de Gruyter GmbH Bauman, R. Briggs, C. (1990) Poetics and performance as critical perspectives on language and social life. Annual Review of Anthropology (19) 59-88 Blommaert, J. (2015) Pierre Bourdieu and language in society. Tilburg Papers in Culture Studies #126. At www.tilburguniversity.edu Blommaert, J. (2005) Bourdieu the Ethnographer – The ethnographic Grounding of Habitus and Voice. The Translator # 11 (2) 219-236. At www.academia.edu Borba, R. (2015) How an individual becomes a subject. Discourse, interaction subjectification at a Brazilian gender identity clinic. Working Papers in Urban Language Literacies #163. At www.kcl.ac.uk/ldc Bourdieu, P. (1972) Esquisse d’une thà ©orie de la pratique prà ©cedà © de Trois à ©tudes d’à ©thnologie kabile. Paris: Seuil Bourdieu, P. (1984) Distinction: A Social Critique of the Judgment of Taste. Massachussets: Harvard University Press. Bourdieu, P. (1990a) The Logic of Practice. Cambridge: Polity Press Bourdieu, P. (2000) Making the Economic Habitus: Algerian Workers Revisited.