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SMEs internal reasons for business failure

Written by: Dr. Rob Smorfitt

Article Overview: What causes most SME's to fail as businesses?

SMEs internal reasons for business failure

Do you read? What do you read? Do you read broadly? Do you read for opportunities?

Reading is critical to SME owners. While many South African, if not most South African SME owners, do not use formal planning structures and methods, what they do not realise is that they still do these things informally. This feeds their gut feel!

Reading is the food for gut feel. Most SME's that fail, fail because they are not in touch with their market and the changing environment. The key to all business success is the PESTEL environmental analysis. The PESTEL analysis alerts us to all the opportunities and threats in our environment. So if we do not read, how will we be able to notice these opportunities and threats.

The Internet today offers many opportunities for those who claim they have no time to read. Products such as Google Alerts help SME's to stay in touch with key issues without having to buy magazines and newspapers.

I have found that most South African employees and SME owners seldom read more than two or three different magazines and newspapers per month, leading to a very narrow perspective of things. we need to build reading into a habit from early childhood, in order to create a habit that will help sustain a business later on in life.

Why not read something today - it could be the difference between success and failure!!!

Rob Smorfitt

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Article Tags: entrepreneur, entrepreneurship, environmental analysis, PEST, PEST analysis, PESTEL, PESTEL analysis, PESTLE, PESTLE analysis, SME, SME failure, SMME, Smorfitt



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