Why Entrepreneurs Fail?

Legislation and the legal environment are an important element in supporting entrepreneurs, in addition to the policies of countries that promote entrepreneurial projects, as an important component in creating and sustaining a leadership environment among young people, especially if there are government and civil support programs for entrepreneurs; Both physical and moral, to overcome the fear of failure, capacity-building programs and the expertise needed to promote leadership

But entrepreneurs face a high risk when starting a new venture. The potential for failure of an emerging company is very large. Just as there are reasons and factors for successful entrepreneurship, there are also reasons for failure. Many studies have addressed the causes of entrepreneurial failure, The entrepreneur’s success for his project, studies have shown that there are several internal and external factors, leading to the failure of the project, such as factors related to competition, poor management capacity, negligence, lack of sufficient liquidity.

Entrepreneurship requires more skills to create and develop economic activity by blending risk, creativity and innovation, with good governance, within a new or existing organization. Accordingly, entrepreneurial skills include creativity, initiative, perseverance, teamwork, risk understanding, and responsibility.

The most important reasons that can contribute to the exposure of pilot projects to failure are:

Weak experience

The success of entrepreneurship is not easy and no one can take responsibility for it. It is an area that needs special features and criteria in the person who decides to operate them. Therefore, the poor management ability of the project owner, its incompetence and efficiency in facing problems, the lack of project management experience in it, or In a more precise sense, a lack of sufficient technical expertise; it is more likely to fail than any other reason.

Knowledge does not always prevent the owner from failure, but the lack of knowledge, and the lack of guidance and guidance necessary for the owner of the project in which to do, expose him to the weakness of the product or service provided, and thus failed to lead the business as a whole.

Do not study the project well

Pilot projects often fail due to lack of good study before implementation begins, or lack of feasibility study, which makes the project owner unable to afford any obstacles; because he did not consider that he would face that problem, but it would be different if the pilot the project is well planned and prepared. It has done a good study of the project and its objectives. It has identified all the aspects, challenges and problems that can be faced in its project in the near or long term. Therefore, it is very important to address the problems and develop solutions to solve them before starting the implementation of the project on the ground.

Weak entrepreneurial culture

The general culture of some societies leads to entrepreneurship failure. Some governments do not encourage private investment and place many restrictions on it. This makes the public atmosphere not conducive to the launching or success of any new projects, in addition to the sterile curricula in some countries. It kills creative thought in children, and does not instill the spirit of adventure and risk from childhood.

Unlike other communities that promote entrepreneurship and are well aware of its impact on building communities, they create the right environment for any new project and provide material and moral support to entrepreneurs, which is one of the most important factors influencing the success of entrepreneurship.


Negligence is one of the main causes of entrepreneurial failure, and failure of enterprises and companies. Neglect in forecasting and planning work policies in the project, and neglecting to maintain systematic records of the project, lead to increased entrepreneurial failure.

Entrepreneurship requires follow-up and attention, continuous development, careful learning of new skills, study of new ways to develop a project, and the effort, fatigue and continuous movement to study new market opportunities and business development. , Successful experiences require patience and commitment to work hard, and try again and again; neglect will only result in failure.

Underestimating the competitors

The ignorance of the market and the competitors in it earns false trust that leads to the abyss. The entrepreneur is ignorant of the market in which his product or service is put up, his ignorance of his competitors’ position makes his chances of success negligible, and any successful entrepreneur must study the market in which he works well. , To identify the plans and strategies that work to achieve the desired success of the institution.


Entrepreneurship is largely related to creativity and innovation. Any successful company is associated with producing new products, offering services in a different way, or adding a new feature to something that existed before, but ultimately the company has achieved innovation.

If the project reinvents old ideas and imitates start-ups in other countries, this is the beginning of failure; because, as we have already said, entrepreneurship is the origin of creativity, but imitation causes the project to fail.

Poverty of the educational system

The current educational and educational system in developing countries does not prepare graduates well for entrepreneurship; these graduates lack leadership competencies, the reason for the cumbersome curriculum, the emphasis on the theoretical dimension, and the traditional methods of teaching.

Finally, reducing the failure rates of microenterprises and entrepreneurial work is done by increasing the level of management education as a first step by developing a special program to improve the economic climate, prepare young people for the market, and train them on small-scale, low-cost pilot projects; Larger areas and larger projects are the first major pilot projects in their lives and in their home countries.

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