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David Alonso González

David Alonso González

How to avoid failure in private business

Since the easing up on the regulations for self-employment at the end of 2010 in Cuba, the number of self-employed workers registered a sharp increase: from just over 150,000 to nearly 400,000, according information made available in November 2012. However an analysis of the statistics shows a slowdown in the growth trend in recent months. According to figures for the first half of 2012, about 30 percent of nationwide licenses were returned. Four out of five small businesses fail in the world before turning five years old, according to international organizations. Without a doubt, building a business effectively is not a matter “piece of cake” To begin with, people might say is all about knowing how to produce something or provide a service. It is also necessary to turn such activity into a profit generating process. It's that simple for some, and tough for others. Generally, small business owners blame their failure on external factors, such as the little official support, high taxes and difficulties in accessing credit. However, many analysts say its unpreparedness to address specific issues of sales, operations, control, planning or management resulting fatally in the high "infant mortality rate" of micro, small and medium enterprises. Do...