Economics and Finance
Economics and Finance
  • Home
  • About
    • Terms
    • Study Abroad
  • Economics
    • Friedman
    • Economics News
    • Videos
  • Finance
    • Finance News
    • Video
  • Contact
  • Publish
  • Under 100
  • Home
  • About
    • Terms
    • Study Abroad
  • Economics
    • Friedman
    • Economics News
    • Videos
  • Finance
    • Finance News
    • Video
  • Contact
  • Publish
  • Under 100

Top 3 economic reasons why private businesses fail in UK

5/15/2016

0 Comments

 
The number of  businesses in private sector is growing every year in United Kingdom, according to fsb.org.uk there were 5.4 businesses registered in UK which grew by about 2.7% from 2014. These are the list of top 3 economic reasons why businesses fail, based on our finding from other resources. 

Competition

Picture
In perfect competition there are a lot of businesses that offers identical products and services. Higher the number of companies register the higher the competition. According to gov.uk the problem in market sector is when market is working well companies compete by offering cheaper and better product to their customers. 

Fail to pay tax 

Picture
According to simplybusiness.co.uk one of the reasons why businesses fail in UK is because they are unable to pay taxes. It is highly likely that most companies are unable to pay their tax on time and according to Simply Business the firms should HMRC immediately when they are having difficulties in paying their tax. 

Budget

Picture
Another economic reason why businesses fail in UK is due to the lack of enough budget. According to the ​intuit.co.uk 29 percent of the small business failure is due to not having enough cash. Based on an article published at ​telegraph.co.uk the businesses fail due to lack of banks lending.  The companies likely to fail with small budget and when there is limitation in borrowing money from banks to finance the operation of their business.  
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Author

    Econ2u and others

    Categories

    All

    Archives

    August 2017
    July 2017
    September 2016
    June 2016
    May 2016
    April 2016
    February 2016
    January 2016

    RSS Feed

Powered by Create your own unique website with customizable templates.