Why Do Business Fail2007-2009

Why Do Business Fail2007-2009

  • Submitted By: hannahqiang
  • Date Submitted: 04/12/2010 3:59 PM
  • Category: Business
  • Words: 1094
  • Page: 5
  • Views: 927

Why do businesses fail?

Is business failure just a cycle or is it caused by some mistakes that people can avoid? The whole world was shocked by the business failure caused by the United States housing bubble of 2007-2009. It has been called the most serious financial crisis since the great depression in the 1930s.This assignment attempts to understand this question. Undoubtedly there are a wide variety of definitions of fail since each person has their own way of deciding what leads failure and of measuring it. According to the Oxford Advanced Learner's English-Chinese Dictionary, “fail” means “not succeed”, “not do something”, or “not pass attest or an exam”. (Wehmeier, 2005, p 613) Scientists and economists have both been concerned with studies into this issue and it is widely held that business failure is a situation in which a business has to close because it is not successful. It therefore occurs when businesses reach a level where they can no longer continue trading without encountering further problems. Because of this, it is essential for people to realize the reasons why business fail early and try to save their businesses or close them. Businesses fail for many reasons. This essay sums them up briefly as both external and internal problems, such as luck of research, failure of marketing and management problems.

As mentioned above, the path towards the success of business is blocked by many obstacles and challenges and how these are overcome has a strong bearing on whether or not the aim is achieved as well as to what extent. Firstly, one of the most common factors of the failure of business is against governmental policies. When people start a business, that is not to say they only contact with suppliers or customers. In fact, they are controlled by many policies of government all the time. Those policies can be a good guide but once people are against any of them, their business has to fail. For example, there are some industries of many...

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