Being a successful entrepreneur means more than just starting a new business every other day. It means the right attitude towards the trade and the determination, along with the barriers to be faced to achieve success.
To an entrepreneur, failure is a positive experience which is considered as a challenge or opportunity for growth in the form of a prerequisite to success, a profound teacher, a future value-adder, a provider of new direction, an enhanced motivator, a path to achievement and even as a relieving liberator.
Failure and success of an enterprise is dependent on two factors −
● Internal factors
● External factors
Factors that affect the organization internally and contribute to the success of the firm are known as internal factors of success. These factors include efficient management, good quality product, quality goods & services, good reputation, low cost production, effective marketing, proper financing, dedicated manpower, proper technology, and proper time management.
Factors that affect the organization externally and contribute to the success of the firm are known as external factors of success. These factors include availability of appropriate raw material, quality manpower, high demand in the market, government policy, low competition, and new market.
Factors that affect the organization internally and contribute to the failure of the firm are known as internal factors of failure. These factors include ineffective management, old technology, poor financing, ineffective marketing strategies, low quality of raw materials, low human relations, and poor leadership.
Factors that affect the organization externally and are responsible for failure of the firm are known as external factors of failure. These factors include shortage of raw material, shortage of power, shortage of manpower, poor finance, change in technology, high competition, negative government policies, and increase in supply and availability of better substitute.