July 2007
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Day July 8, 2007

Top Reasons of Business Failure

While 44% are able to complete their fourth anniversary.A survey by Murphy Associates, Your Marketing Department, states that there are several reasons why small businesses fail and the most common being the lack of cash flow and the inability of manage funds in an effective manner.... 60% of small businesses that have closed down state that it is because they have not been able to follow their business plan in a practical manner.Some of the other reasons include ineffective use of time and money, insufficient work experience, poor management skills and inability to manage human, material and financial resources.

Theft in Small Businesses

It is crucial for all businesses, big or small, to verify the credentials of their employees.In its 2006 report the Association of Certified Fraud Examiners revealed that businesses that had less than 100 employees incurred an average of $190,000 in fraud losses.Every business is vulnerable to fraud and business owners cannot take the risk of not setting up safeguards and checks to dissuade tampering of financial documents and stealing money. Trust has to exist in any relationship, especially a professional one, but that does not mean that small businesses leave scope for employees to take advantage of the firm.Some of the safeguards the Association of Certified Fraud Examiners recommends include doing a background check and regularly reviewing the company’s financial data.The report revealed that 29% of frauds were related to tampering of company checks while in 10% cases credit card abuse who discovered. Small business owners need to notice and be aware of the checks they are signing and the financial powers they are giving to their employees.Creating a fraud hotline is a great way to keep a track of any suspicious activities in the company that may lead to fraud.

Red Tape Hampering SME Growth

A 2004 BBC survey report indicated that red tape cost the British business over £30 billion that year. Red tape or bureaucratic and regulatory hassles is one of the main reasons why small and middle size enterprises hesitate from taking on growth plans. In fact these firms would think twice even before considering employing new…

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