What would be the main reason for the failure of the entrepreneurs though they have innovative business ideas?
The opportunity to do something substantial in the field of entrepreneurship always involves taking a risk.
The risk taken is based on the total education & experience of the entrepreneur coupled with the intellectual resolve and financial strength they can muster within the period of entrepreneurship.
- Experience (Industry Knowledge, Professional Network, Idea of Pitfalls)
- Intelligence (Emotional, Analytical, Temperament)
- Finances (Borrowed on good will, Bootstrapped, Seed Fund)
in my opinion A shortage in any of the four factors above is a red flag for any entrepreneur to start a business.
Coupled with the fact that entrepreneurship is an intensely competitive environment and the ability to form trustworthy partnerships is very difficult as you get older.Its easier to make friends when you are young and full of enthusiasm than when you turn a bit older and the practical issues of life start to weigh on you.
Hence even if you cross the first 4 hurdles you have to deal with 5 & 6.
The only way out in my opinion for the average entrepreneur is to be Ambitious from your first job, Bolster your finances, keep your family well informed about your decision to become an entrepreneur , be very very patient with people , coz its not easy to build trust and practice humility with those who are critical or down right antagonistic about your business ideas.
The longer it takes to be successful, obviously the interest and motivation of the entrepreneur will reduce, and thats why Ambition matters in the long run, keeping you psychologically head and shoulders above the rest , even if you are starting from scratch all the time.
This graphic from a previous post is an overview of the entrepreneurial journey .
Of course there are all just my opinions based on my perspective & experience. I am sure there are many successful entrepreneur’s out there who have much more to share, based on their successes / failures and experiences in this field.
Entrepreneurs fail for several reasons such as:
. Lack of proper planning
. Lack of funds required
. Avoiding of feasibility study are few to mention while there are so many …