Many of you may work for small businesses. Some of you may even own your own business. In order to operate a small business, you will need a good understanding of managerial accounting, as well as many other skills. Much information is available to assist people who are interested in starting a business. A great place to start is the website, search engines, you-tube sources and agencies of the government which are set up to help such entrepreneurs.

Your chances of success in small business are increased if you have the following characteristics: You are a self-starter, you get along with many different kinds of people, you are good at making decisions, you have physical and emotional stamina, you are well organized, you have a strong desire to succeed and you will receive family support during the start-up phase.

The top ten reasons why businesses fail, as cited in the books 'Small Business Management' by Michael Ames, and 'The Do it Yourself Business Book' by Gustav Berle are:

i. Lack of experienceii. Insufficient capital (money)iii. Poor locationiv. Poor inventory managementv. Over-investment in fixed assetsvi. Poor credit arrangementsvii. Personal use of business fundsviii. Unexpected growthix. Competitionx. Low sales

Required:

Using evidences from websites, search engines, journals and other reputable sources, elaborate on any six of the above reasons (with citations) why small business may fail.