INTRODUCTION

There are many entrepreneurs all around the world which is started to change faster last 20 years. Some parts of these entrepreneurs consider establishing small size company with a little bit capital, another parts think about new investment for medium size companies to develop and consider using potential that has gain at previous experience. While many of these companies can operate own business plan and reaching own targets successfully, some of these cannot move on next process and going to have a failure about management. The purpose of this working is, analysing and discussion the causes of unsuccessful and failure business that lacks of ability and can not progress.
Failure of small firms will have been discussed in this work but on the other hand, defeat is realty for the large companies same as well. For example, half of the largest US companies has disappeared between 1974-2000 years (Sheppard,2012).
Behind the failure of the firms, there should be many reasons. While the largest companies still continue their business life as developing and getting more profit year after year, why the small enterprises face many problems to reach their target profit and do not find impressive place in a market. Reasons and results for the failure of the small enterprises are going to discuss in this work. Most important reasons were defined that these are lack of experiences of managers and owners, insufficient capital, poor inventory management, poor locations and wrong time for the companies, emotional pricing, not eligible qualification for bank credit and sometimes unexpected growth and personal using of business profit (Jenkins, Wiklund and Brundin, 2014). These problems will have been examined between experienced business which can operate it successfully and inexperienced business which have not capacity and can not handle it in these researching