Why entrepreneurs close their businesses

• Falling demand due to external factors such as war, quarantine, and migration.
• Insufficient sales and low profits. If an entrepreneur cannot find buyers for their goods or services, their business cannot be profitable and financially sustainable.
• Excessive rents or lack of flexible pricing policy in crisis situations. The unwillingness of landlords to meet an entrepreneur's needs when he or she is experiencing financial difficulties, and the increase in rent for premises, on the other hand, can create unbearable conditions and lead to business liquidation.
• High concentration of business in large cities. The concentration of capital in the capital and large cities leads to uneven incomes between residents of the center and the provinces. Due to low purchasing power and low demand, entrepreneurs in small towns and rural areas are more severely affected by crises. Therefore, businesses in the provinces may find themselves on the brink of ruin much faster.
• Competition. Smaller stores are being squeezed out by larger retailers. For example, next to a grocery store that has existed in a city for years, a well-known chain opens with a huge turnover and low prices, constant promotions and discounts. As a result, the small store goes into a steady negative and closes.

Another reason for a company's bankruptcy may be insufficient capital. It's one thing to invest in starting a business, but it's another to constantly support its operations. As a business grows, it requires more investment than at the beginning. For example, to launch a new product line, open a new store department, or expand the range of goods. If there is not enough capital, the business may become unprofitable.

The deterioration of trade in the store can be directly related to the incompetence or insufficient efforts of the entrepreneur. 

The entrepreneur does not have enough experience or skills to successfully manage the business. They don't know how to properly promote their store, manage finances effectively, control company processes, or how to hire staff. This leads to an underestimation of risks and a deterioration in the financial condition of the business.

Often, beginning entrepreneurs, having received their first decent income, consider it a profit and forget about expenses.

Large investments in trade facilities, such as renovation of premises, purchase of expensive equipment, etc. can be a mistake. As a result, there is a shortage of working capital: there is not enough money to purchase the next batch of goods.

When it comes to managing business income and expenses, automation will become an indispensable assistant to an entrepreneur.

Starting a business without understanding how the market works and how prices for goods are formed is a guarantee of its rapid decline.

A detailed and well-thought-out business plan is one of the basic and important components of successful entrepreneurship. Its development will allow the owner to predict and take into account all possible factors that will affect the prosperity of the business. The absence of a plan is a "blind game" with a high probability of negative consequences.

Let's give an illustrative example. There are two shops on the market with similar products. The first one always has a queue, but the second one does not, because the first one sells the goods cheaper than the second one buys them. The reason is logistics. Suppliers deliver goods to the second store, and even for sale. And the owner of the first one buys the goods himself at large wholesale bases and brings them himself. It is easy to guess that with such a logistics scheme, the second entrepreneur will quickly find himself on the verge of bankruptcy.

Insufficient business promotion, lack of advertising and marketing strategy, and ignoring modern methods of attracting customers - promotions, discounts, loyalty programs - further create conditions for business closure.

Gaps in human resources management

Instead of a conclusion