Photo AI
A large number of small businesses fail within the first two years - Edexcel - GCSE Business - Question 16 - 2016 - Paper 1
Question 16
A large number of small businesses fail within the first two years. Identify one reason why so many small businesses fail in the first two years. Select one answer... show full transcript
Worked Solution & Example Answer:A large number of small businesses fail within the first two years - Edexcel - GCSE Business - Question 16 - 2016 - Paper 1
Step 1
Identify one reason why so many small businesses fail in the first two years.
Answer
Many small businesses fail during the initial two years primarily because they are not customer orientated. This lack of focus on customer needs can lead to poor sales and ultimately business failure. Choosing option B, 'Product not customer orientated,' highlights the importance of understanding and meeting customer expectations in order to sustain a successful venture.