What to Do If Your Business Fails
According to the Small Business Administration, new businesses have a 34 percent chance of failing within two years and half are not operating in four years. 60 percent of businesses fail in six years (Scarborough and Zimmerer 12). I know people do not set out to fail this statistics show that it does happen.
What is business failure? John Watson and Jim E. Everett authors of "Do Small Businesses Have High Failure Rates", say that experts tend not to agree what is the clear definition of business failure. Most of society believes that it is when a business files for a form of bankruptcy. However others believe that it can be "bankruptcy, merger, or acquisition. Still others argue that failure occurs when a firm does not meet responsibilities to stakeholders of the organization."
The South Dakota State University Bulletin states students in the Entrepreneurial minor will "have the opportunity to increase their knowledge of skills needed to start, own, and/or operate a business." Part of owning a business is the chance of failure. In the syllabus for Entrepreneurship II one of the course objectives is to learn the challenges and rewards of entrepreneurship (Behrend). The class Entrepreneurship II needs to discuss what to do if a business fails because if a business does fail students need to know how to deal with the failure.
Being prepared for failure is a practical part of starting a business. The statistics stated earlier show that business failure is very possible, and it is hard to see why learning to deal with business failure is not discussed in the Entrepreneurship II class. If the South Dakota State University wants students to be prepared for the real world, learning about business failure would be a big step. Also if we understood business failure students could learn from it and maybe in future be able to deal with it better.
One very important topic in business failure is bankruptcy. Bankruptcy is the the choice that many people make to
What is business failure? John Watson and Jim E. Everett authors of "Do Small Businesses Have High Failure Rates", say that experts tend not to agree what is the clear definition of business failure. Most of society believes that it is when a business files for a form of bankruptcy. However others believe that it can be "bankruptcy, merger, or acquisition. Still others argue that failure occurs when a firm does not meet responsibilities to stakeholders of the organization."
The South Dakota State University Bulletin states students in the Entrepreneurial minor will "have the opportunity to increase their knowledge of skills needed to start, own, and/or operate a business." Part of owning a business is the chance of failure. In the syllabus for Entrepreneurship II one of the course objectives is to learn the challenges and rewards of entrepreneurship (Behrend). The class Entrepreneurship II needs to discuss what to do if a business fails because if a business does fail students need to know how to deal with the failure.
Being prepared for failure is a practical part of starting a business. The statistics stated earlier show that business failure is very possible, and it is hard to see why learning to deal with business failure is not discussed in the Entrepreneurship II class. If the South Dakota State University wants students to be prepared for the real world, learning about business failure would be a big step. Also if we understood business failure students could learn from it and maybe in future be able to deal with it better.
One very important topic in business failure is bankruptcy. Bankruptcy is the the choice that many people make to
Cited: Axelton, Karen. "Bouncing Back." Entrepreneur Magazine. March 1998: 104-110. Behrend, Don. E-mail Interview. 13 Apr. 2005. Behrend, Don. Syllabus Entrepreneurship II. SDSU. Spring 2005. "Is Business failure the end?" Journal of Business Stragety 16.1 (1995): 44. Scarborough, Norman M. and Thomas W. Zimmerer. Effective Small Business Management: An Entrepreneurial Approach. 7th ed. New Jersey: Prentice Hall, 2003. 12, 27, 701-702. Shepheard, Dean A. "Learning from Business Failure: Propositions of Grief Recovery for the Self-employed." Academy of Management Review 28.2 (2003). Singh, Arun Pal. "still Mourning that Business Failure." GuruMarketingArticles.com. 2005 6 April 2005. . "Small Business Failure." Bizhelp24. 2003. 6 April 2005. . South Dakota State University. South Dakota State University Bulletin. SDSU, Brookings, SD. 2004. Watson, John and Jim E. Everett. Journal of Small Business Management. 34.4 (1996): 45-6