The need for small business equipment management software
The key challenges to small business survival
For every startup business, the first 5 years are the most critical and determine the chances of survival in the long run. Research conducted by the Bureau of Labor Statistics shows that 50% of the business will last 5 years or more. This number reduces to a mere one third after ten years. So, what exactly are the reasons behind business failures? To answer this, National Small Business Association report points out the following difficulties, faced by firms:
- Economic Uncertainty (49%) – Inability to actively cope with unexpected changes in the coming years poses a threat to small businesses. This mostly happens because companies lack the mechanism required to deal with such situations.
- Regulatory Burdens (29%) – With the rules and regulations getting tougher every year, it becomes harder to meet the set legal requirements. Small businesses tend to suffer more as they already operate on a tight budget and cannot spare bear the overhead costs.
- Cost of Technology (9%) – Rising technology prices are likely to slow down the growth of small and medium business firms. One way to deal with this problem is to make smart technology investments with a greater rate of return.
Dealing with business failures – the way forward
While most of the issues faced by firms reflect circumstances at the macro level; the solution to such problems lies at the micro level. What this means is that companies need to start working at the very basic stage to achieve positive outcomes. Majority of the challenges can be addressed through the use of a robust cloud-based management software. Continue reading