EPQ:Unveiling the Veil of Failure:

Exploring the Reasons Why Most

Small Businesses Fail
TABLE OF CONTENTS
01 02 03
My Methodology
Importance of SME Reason why SME fail

04 05
Experience with EPQ Conclusion
Importance of small
businesses
‘Small businesses are the engine of the UK
economy and at the heart of their local
communities. 10,000 Small Businesses equips
them with the tools to grow sustainability and
unlock their full potential.’ - Goldman Sachs
 SMEs are generally thought to
The be the backbone of any

importance
healthy economy; they drive
growth, provide employment
of SME opportunities and open new
markets. SMEs already
(small and contribute more than 50%
towards GDP, they also supply
medium and anchor big retail

business)
businesses with products, UK SME Turnover
services and even markets.
UK SME business turnover by employee number band
(UK GOV):

One to nine employees: £592,131,000,000

10 to 49 employees: £669,553,000,00050 to 249

employees: £762,947,000SMEs in the UK have a

combined turnover of £2 trillion This accounts for 52% of

the UK’s private sector £4.47 trillion total turnover (UK

GOV)
Published by D. Clark, Nov 30, 2023 (Number of
SMEs in the UK 2023, by sector)

“In 2023, there were approximately 882,770 small

and medium-sized enterprises (SMEs) in the
construction sector in the United Kingdom, the most
of any sector in that year. The sector with the
second-highest number of SMEs was the
professional, scientific, and technical activities
sector, at 770,475 SMEs.” - Published by D. Clark,
Nov 30, 2023 (Number of SMEs in the UK 2023, by
sector
Unveiling the Veil of Failure
The Psychology
Good psychology is crucial for
entrepreneurs because it
underpins many aspects of
successful business leadership
and management.
Lack of Marketing
You can have the best
product or service in the
world, but if nobody knows
about it, you won't succeed.
You need to get your name
out there and let people know
about the benefits of your
business. If you cannot reach
your audience, you cannot
find success.
Lack Of Soft Skills
Soft skills are the missing piece
to the success puzzle for many
entrepreneurs. Soft skills are
the sometimes intangible and
non-technical talents
entrepreneurs need to lead
effectively. They include
attitude, communication,
empathy, motivation,
teamwork, networking,
leadership, decision making,
problem-solving and conflict
resolution.
The Psychology of Why Entrepreneurs Fail.

Thomas Thomas Edison once said:

“I have learned fifty thousand ways it cannot be
done, and therefore I am fifty thousand times closer
to the final successful experiment.”

This is a more eloquent way of saying that there’s a

lot to learn from failure.

Vision deficiencies can be detrimental for entrepreneurs because a clear and

compelling vision is often the driving force behind a successful business. It
provides direction, inspires innovation, and helps align team efforts towards
common goals. Without a strong vision, entrepreneurs may struggle to
motivate their team, attract investors, and navigate the challenges of the
business world. A lack of vision can lead to a lack of purpose, making it
difficult to make strategic decisions and to persevere through obstacles.
Ultimately, vision deficiencies can result in missed opportunities and the
inability to adapt to market changes, which can lead to business failure
 The Psychology why Entrepreneurs fail
In SMEs, leaders are inseparably intermingled with their companies and thus perform a crucial
role. For example, we know that entrepreneurs influence their companies’ culture (Schein, 1983). In
addition, their characteristics and motivations have been proven to influence the growth of their
companies (Baum et al., 2001).

Lack of Marketing
Digitalization has
transformed the
value-creation logic of firms
and made some resources
such as digital technology,
innovation management,
and employee skills even
more important than before
(Eller et al., 2020; Estensoro
et al., 2021). This also
necessitates increasing the
human capital within the
firm.
O’Cass and Sok (2014) argue that to achieve growth in
competitive markets, an SME must be able to market its
products and services According to O’Cass and Sok (2014), firms
must possess marketing capabilities to leverage resources. SMEs
have natural constraints to the capabilities and resources available
to them. There is widespread acceptance of the notion that small
firms have inherent weaknesses regarding marketing awareness
and practice (Möller and Anttila, 1987; Murdoch et al., 2001; Marcati
et al., 2008; Walsh and Lipinski, 2009). Marketing in SMEs is often
characterized by a lack of resources, coherence and expertise .
Reason why Marketing is important for SME
Small businesses marketing is important because it has the potential to
share your message with customers who may not be familiar with your
business. Capturing new interests and leads through marketing not only
grow your sales but it also helps establish a presence and sense of
authority around your brand.
By creating and sharing valuable content across different channels, small
businesses are able to reach new audiences, engage with them in real
time, offer helpful information and gain insight into what future
strategies will prove to be the most successful.
Lack of Soft Skills
What is soft skills ?
Soft skills are general traits
not specific to any job,
helping employees excel in
any workplace. They include
communication, teamwork,
and adaptability, often
termed as transferable or
interpersonal skills. They’re
essential for professional
success.
Importance of Soft Skills
Soft skills are essential for the success
of Small and Medium Enterprises
(SMEs) as they facilitate effective
communication, collaboration, and
leadership within the organization.
These skills encompass traits such as
communication, teamwork, adaptability,
and problem-solving, which are crucial
for building strong relationships with
customers, suppliers, and employees.
In SMEs, where resources may be
limited, possessing strong soft skills
enables efficient management, fosters
innovation, and enhances overall
productivity.
Lack of soft skills ?
A lack of soft skills within a Small and
Medium Enterprise (SME) can have a
variety of negative consequences. Poor
communication may lead to
misunderstandings with customers,
suppliers, and employees, resulting in
lower satisfaction and productivity.
Ineffective teamwork and conflict
resolution may stymie collaboration and
innovation, slowing growth and
competitiveness. Without adaptability
and problem-solving abilities, the SME
may struggle to navigate challenges
and capitalise on opportunities,
jeopardising its long-term viability and
success.
 Experience with EPQ
I started my EPQ project in the
winter of 2023, and I can confidently
say that it was a very positive
experience overall. I really enjoyed
working on my EPQ, thanks to the
support I received from Mr. Hobbs
and my fellow students. The other
students who were also
participating in the EPQ were very
helpful and encouraging.
One of the most enjoyable
aspects of my Extended Project
Qualification (EPQ) was the
freedom to choose any topic that I
was passionate about for my
essay. I decided to write about the
reasons behind the failure of most
small and medium-sized
enterprises (SMEs). This topic
intrigued me because there is no
single answer - there are many
different reasons why SMEs fail. I
had full creative freedom to
explore this topic and write a
five-thousand word essay on the
subject.
Challenges i faced during
my time doing EPQ
During my EPQ, I encountered various challenges, and the most
significant among them was time management. I admit that most of the
issues were caused by me. I had a bad habit of procrastinating and
wasting time, which was very harmful to my project's progress. My
tendency to waste time caused me to fall behind schedule, and I had to
work extra hard to catch up, which led to unnecessary stress that could
have been avoided with better time management.