"Common Finance Problems that Can Kill Small Businesses"

2017-06-07 17:38:24

A series of five articles will tell how to prevent the collapse of a young company due to ignorance of trivial things.

Earl K. Stice, Ernst & Young Professor of Accounting and Finance at Nazarbayev University Graduate School of Business, Yerken Arystan, Research Associate at Nazarbayev University Graduate School of Business, Derrald Stice, School of Business and Management at Hong Kong University of Science and Technology, and James D. Stice, W. Steve Albrecht Professor of Accounting at Marriott School of Management Brigham Young University, published an article “Common Finance Problems that Can Kill Small Businesses” in National Business journal.

In this paper five small business finance and accounting problems that can cause these businesses to be more likely to fail are described. These five problems are (1) insufficient capital, (2) poor cash management, (3) poor record keeping and controls, (4) improper product pricing, and (5) uncontrolled growth. Good finance and accounting practices don’t create successful small businesses; those successes are created by innovative and useful product and service ideas. But bad finance and accounting practices can kill an otherwise good small business before it ever has a chance to get established.

Full article you can read here.