Inadequate Financing
Let me talk about this point as I don't accept such as one reason why a small scale business should fail, we can consider what we often referred to as business growth as a process whereby an enterprise proceed from one developmental stage to another and just as we know that many businesses started from being small to expand to something big in the later future and we've got some good examples of some businesses that has little start up capital and remain committed to it and they eventually got advanced and the business turn big while some have started with huge amount of capital but ended in bankruptcy within the shortest period, so it's a responsibility of funds utilization in business expansion and its management, start small and grow big is better than starting big and ending up closed down.
In this case it may be a target that we need to consider. Because in business, especially for small businesses, it is clear that we do not have to set high targets to fit our budget.
Actually, in this case insufficient capital can occur for several reasons and indeed for a small business, it will be more or less affected by capital, even though what you say is starting from small to big, but in this case, adequate money management is needed so that things like capital do not happen which is not adequate.
I got your point here, business line has several requirements for each stages and level a business want to operate in, this is a determination of the business idea itself, then we can come to say that some business just need an adequate start up capital bade on the nature of the venture while some can manage to start small and grow big to develop into the standard required one, the vision mandate of every business enterprise is different and so is their financial capacity required, the least a business may require can be the highest another may needed to operate with, therefore understanding the particular nature of a business can help direct it requires funding capital adequately for effective utilization.