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Summary - Why business fails
l<Tab/>Brief statement of understanding of the topic
It is a common sense in the business world that business fails at an exceedingly high rate. In discussing this topic, all researches give somewhat the same perspective: in the starting years, most business will fail. According to Frank (1988), over one-half of all business failures occur within the first years of a firm's star-up and approximately one-third of the failure occur within three years. Likewise, Nadu (1978) suggested "nearly two-thirds of new enterprises fail in the first five years". Given the high rate of the…
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