Austin, Aiden, and Zara wanted to open A2Z Sports Bar that serves a unique offering of beer, weekend entertainment, and a limited menu of appetizers. In one of the preliminary meetings, Zara presented a list of reasons that small businesses fail. Although many of the ideas on this list were applicable to many types of business, one challenge pertained specifically to the restaurant and bar business. The challenge he referred to was

some of the easiest businesses to start have the least growth prospects and greatest failure rates. T/F

Question

Business

Lili

21 April, 15:04

Austin, Aiden, and Zara wanted to open A2Z Sports Bar that serves a unique offering of beer, weekend entertainment, and a limited menu of appetizers. In one of the preliminary meetings, Zara presented a list of reasons that small businesses fail. Although many of the ideas on this list were applicable to many types of business, one challenge pertained specifically to the restaurant and bar business. The challenge he referred to was

some of the easiest businesses to start have the least growth prospects and greatest failure rates. T/F

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Gabriella Lawson · Answer 1

true

Explanation:

A large percent of small businesses fails during its first years of operation, 20% fail by the end of the first year and 50% fail by the end of the fifth year. It is also true that common or easy to set up businesses also have low growth prospects, and face much more competition.

Every new business starts with an idea, and common ideas are "common" because many people have them. A bar is a relatively common type of business in the US, there are over 62,000 open. The total number of bars have been decreasing since there is so much competition, and unless a business is able to differentiate from the rest, they are simply one more.

Unique ideas that result in innovative businesses generally have a better chance of not only staying open, but also growing at much higher rates.