Question

the united states small business association has identified at least 50% of new small businesses fall within their first five years of operation. identify three factors that most likely are the reason for these failures.
□ entrepreneurs have a lack of business experience.
□ there is not enough competition in the market.
□ entrepreneurs have a lack of capital to keep the business going.
□ trade barriers prevent sizable profits.
□ the business fails to innovate.

Explanation:

These are well-documented top reasons for small business failure: lack of experience leads to poor decision-making; insufficient capital causes cash flow collapse; failure to innovate leaves businesses unable to adapt to market changes. Low competition would not cause failure, and trade barriers are less common as a top failure cause for most new small businesses.

Answer:

A. Entrepreneurs have a lack of business experience.
C. Entrepreneurs have a lack of capital to keep the business going.
E. The business fails to innovate.