As a result of the 50 conducted interviews with the owners of small businesses and high representatives, I identified specific recurring themes and notions. Most of the interviews were productive and helped to uncover valuable information for the study.
Unlike it was expected, most of the owners whose businesses failed, spoke of it willingly and openly. The information about the reasons why businesses failed were coded into three categories: financial issues, clientele/marketing problems, and internal/organizational matters. One of the patterns identified in the course of the study was that participants tended to mention money issues as their key source of failure. For instance, participant 3 stated, “I experienced a cash gap. I was not getting enough money to cover the costs in time.” Thus, the interview results suggest that financial issues were the most often specified reason for small businesses to shut down. The number of such failures reached 23%, which is less than anticipated initially. Similar percentages were achieved by Snider (2015), who claims that about 20% of start-ups fail in the first year.
The results of the conducted interviews identified three most common issues that resulted in businesses failing. The maintenance costs of all necessary equipment and other financial issues became the most popular problems of small enterprises. The study allowed identifying that less than 50% of the start-ups fail in the first year, 23% in particular. The findings are consistent with the data other researchers uncovered. In light of the findings of the current research, there is a clear need for further studies that could focus on exploring financial reasons for startups to fail. It could be argued that financial matters are the most crucial aspect of starting a new business. However, further data is required to prove this theory.
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