Why Small and Medium Businesses Fail at the start up?

It has been noticed in Denmark and across the Europe that a lot of companies getting registered everyday but there is another hard fact as that a lot of companies apply to get dissolved. There are so many factors that lead businesses to an end apart of from lack of finances and management issues.

1. There is not so much room for new businesses in that particular area for new companies that lead to dissolution. Most people do  not work properly prior to their business start and the scope is limited for newcomers either due to large number of companies already operated or the idea is abandoned.
2. In some cases the growth is very high that the owners couldn't manage it due to incompetence or lack of vision. But most it is due unnecessary opening of new outlets or unnecessary investments that leads to failures.
3. Some people do not have enough finances to work for their growth and the introductory stage ends in frustration.
4. It is also noticed that some people really unable to meet the needs and expectations of the customers either the product or service quality or delivery.
5. In some cases, the owners are self centered and by this they miss most of the important activities that are required to address.
6. Lack of business experience and the right approach required 
7. inappropriate allocation of funds to assets required

There are some others that will be discussed from time to time in this blog.