business losss

Do you have any idea about why a small business fails in India? There are many reasons but who will lose the money is probably the simplest question. Many factors contribute to business failure. Starting from political pressure to banks not giving loans to small businesses everything has its role.

Why This Article?

Read news about Reliance Salary Cut on economic times and the brain moved little backward and forward thinking about series on incidents. When Asia’s most valued companies like Reliance cannot afford to pay even two month salary to their employees how the government is expecting MSME sector to survive.

Doing business is never easy. The data says more than 95% business fail and out of those 5% also many struggle for existence.

Disasters like demonetization and pandemic come and go. But they leave behind losses, financial instability and worry for the uncertain future.

What happens when a big company walks through tough time?

Employees work not only to earn their bread and butter from the job but also contribute to the overall growth of the company.

In most cases they are run but public money. If a public limited company faces the situation, it is not the director / owner who get hit at first. Form him it is just about numbers.

It is the shareholder who loses money, it the bank who approved loans and there are employees who are afraid of job losses or a salary cut.

Government work for corporates, banks work for them and policies are made for them. The escape plan is always ready.

There are examples where companies failed but owners are still having all the fun because it was not their money.

What Happens when a Small Business fails?

When someone decides to start a business, there are dreams with clear or un-clear visions. Everyone is not a visionary to see very long term. But for sure very few start business to close after a time and run away. Small business owners, they work day and night to make it a success. Also they try to explore and un-turn every stone possible to keep business running. But what happens when a small business fails.

In case of Small businesses they do not get enough support from government, banks avoid giving loans and on the verge of disaster it is the small business owner looses all his money and hard earned savings. Still There are unpaid accounts and road ahead is tough. Employees also face the heat but they have someone to point out the finger. But sooner or later employees who left the organization will get a job somewhere. Banks are safe as they did not invest in a small business.

World will move on and things will change.

At the end nobody will remember the owner of a failed business. May be, he was not big enough to be remembered.

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