What are the internal causes of business failure?

Most of the business houses failed and closed down their operation because of a number of external and inter factors. Most of the business undertakings fail due to internal factors. These internal factors are:

  • The quality of leadership in the organisation is poor.

    Mrs. Miceli's Business Courses 14-15

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  • Inefficient management increases the cost of operation and as such business houses failed.
  • Corrupt practice or fraud and cheating on part of the owner and employees.
  • Diversification of business funds in some other operation.
  • The choice of location of the business is not proper.
  • Escalation of cost due to delay in launching the project.
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