In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

1:Lack of experience

2:Insufficient capital (money)

3:Poor location

4:Poor inventory management

5:Over-investment in fixed assets

6:Poor credit arrangements

7:Personal use of business funds

8:Unexpected growth

Gustav Berle adds two more reasons in The Do It Yourself Business Book:

9:Competition

10:Low sales What is the common thread