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A large number of small businesses fail within the first two years - Edexcel - GCSE Business - Question 16 - 2016 - Paper 1
Question 16
A large number of small businesses fail within the first two years. Identify two reasons why so many small businesses fail in the first two years. Select two answer... show full transcript
Worked Solution & Example Answer:A large number of small businesses fail within the first two years - Edexcel - GCSE Business - Question 16 - 2016 - Paper 1
Step 1
Select two answers.
Answer
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B: Product not customer orientated - Many small businesses fail because they do not focus on customer needs and preferences. Without understanding the target market, businesses may develop products that do not resonate with consumers, leading to poor sales and eventual failure.
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E: Rapid growth and over expansion - While growth is an essential goal for any business, expanding too quickly can overwhelm a small business's resources. If a business cannot manage its growth appropriately, it may run into financial difficulties, operational challenges, and ultimately fail.