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Some of the big reasons that businesses fail include:
IN CONTEXT
An example of small business failure is a website called Wesabe. Wesabe opened in 2006 and closed in July 2010. During this time, it was considered a leader in online personal finance. However, 10 months after Wesabe's introduction, a competitor, Mint, appeared. Mint had a better name, better design, and was easier to use so people stopped using Wesabe and started using Mint. This lead to Wesabe having to close its website in 2010.
Another example of small business failure is Iparents, which was a website for parents and families that opened in 2008 and closed in 2010. Although Iparents was a popular social network for parents and families, too much time and money was spent on things such as text alerts for appointments and the ability to turn family photos into magnets. This was not something its customers wanted, which lead to business failure for Iparents.
Many small businesses experience failure, however, a lot of small business experience incredible success.
Small business success can come from:
IN CONTEXT
An excellent example of small business success is Oak Street Bootmakers, which is owned by George Vlagos. He realized that in Chicago it was really difficult to find a pair of quality shoes. So he opened his small business, Oak Street Bookmakers, and now there is a six-week waitlist to get a pair! He was able to meet the demand for custom made shoes.
Another great example of small business success is Bamboletta Dolls based in Vancouver. Bamboletta Dolls is about community and using all-natural materials to create hand-crafted, one-of-a-kind dolls for children of all ages. The owner, Christina Platt, was able to meet the demand for all-natural dolls that felt real to children, while also focusing on community.
Source: ADAPTED FROM SOPHIA INSTRUCTOR JAMES HOWARD