The promotion of entrepreneurship is a funda – mental mechanism to promote the creation of new businesses that then lead to job creation, develop – ment, economic growth, and competitive advan – tages, particularly in developing economies such as Colombia.
The challenge is how to complement these processes in order to diminish risk aversion, as well as improve basic conditions to diminish the high rates of ventures perceived as failures. Factors such as investment in innovation, flexible business options, and organizational structures that min – imize uncertainty help create successful business and allow them to overcome many internal and ex – ternal market factors.
The purpose of this study is to identify the primary factors that lead to the failure of ven – tures within the Colombian context responses from 324 Colombian entrepreneurs gathered from an online survey. The survey included six factors (Financial, Organizational, Marketing, External Environment, Operational, and Human Resources) with respective sub-categories, a personality test, and segmentation questions.
These last two sections were included with the goal of defining a profile of Colombian entrepreneurs. The results showed that the principal causes of failure for Colombian entrepreneurs are, in order, financial issues, organizational issues, external environment, and marketing.