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The reasons for failure fall into three broad categories: managerial inadequacy, finance, and environmental. They, in turn, have some consistently mentioned factors see Table 1. 5 "Reasons for Small Business Failure". These factors should be viewed as warning signsdanger areas that need to be avoided if you wish to survive. Although small business owners cannot directly affect environmental conditions, they can recognize the potential problems that they might bring. This text will provide guidance on how the small business owner can minimize these threats through proactive leadership. Ultimately, business failure will be a company specific combination of factors. Monitor101, a company that developed an Internet information monitoring product for institutional investors in 2005, failed badly. One of the cofounders identified the following seven mistakes that were made, most of which can be linked to managerial inadequacy:Roger Ehrenberg, Monitor 110: A Post MortemTurning Failure into Learning, Making It!, August 27, 2009, accessed June 1, 2012, mall Business Entrepreneur Story Failure. htm. Small businesses come in all shapes and sizes.

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