1.1.2

Question 1

What happens when a business fails to plan

Answer 1

If business fails to plan for the future it may risk losing out to competitors

Question 2

What must a business have to survive

Answer 2

business must have a clear strategy and plan if it is to survive in a today’s dynamic business world

Question 3

What is the percentage of failure in a new start-up

Answer 3

• 20% of small businesses fail in their first year
• 30% of small business fail in their second year
• 50% of small businesses fail after five years in business
• 70% of small business owners fail in their 10th year in business.

Question 4

Financial risks

Answer 4

Starting a business can be a financial risk for the owner

Question 5

Lack of security

Answer 5

If an entrepreneur has a regular job, and they decide to leave that job to open their own business this is a huge risk
*They may have a mortgage, a car and other bills to pay
*Also there may be insecurity of sales with falling consumer incomes