The Small Business Administration. (2012) reports that 66% of businesses survive past the first two years of operation while only 50% survive past the first five years of operation. The Small Business Administration. (2012) also reports that these trends have endured over a long time. These findings prompt the question as to why small business are predisposed to fail. The purpose of this paper is to answer this question.
Various reasons have been proposed to explain the failure of small businesses. Bates (2014) attributes the failure of small business to shortages in cash flow. This factor can be either ...