Success in business is never automatic. It isn’t strictly based on luck although a little never hurts. It depends primarily on the owner’s foresight and organization. Even then, of course, there are no guarantees.

Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years.

1. Lack of experience
2. Insufficient capital (money)
3. Poor location
4. Poor inventory management
5. Over-investment in fixed assets
6. Poor credit arrangements
7. Personal use of business funds
8. Unexpected growth
9. Competition
10. Low sales

More Reasons Why Small Businesses Fail

These figures aren’t meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.

Do You Have What It Takes?

What does it take to be an entrepreneur? Which personality traits make for success? Let’s see if you have what it takes.

FICTION: To be an entrepreneur you must be born that way.
FACT: Anyone can learn to operate like an entrepreneur.