A large proportion of people who get into businesses find they are stuck in an unsustainable cycle of paying premiums and then waiting for a return on their investment, according to a new report by the Insurance Research Council.
The study, entitled “Why do most companies go bankrupt?”, is based on data from over 1,000 companies and their employees.
It suggests that a large proportion are unable to make timely investments in their business.
The report finds that nearly 40 per cent of the companies surveyed said they had experienced “substantial” losses.
Many businesses do not have the resources to hire the staff needed to run a successful business, and are relying on the financial services industry for their financing.
Many of the firms that have experienced financial difficulties also have the lowest employee retention rates in the US.
The research suggests that when people find that their businesses are not viable, they may resort to more risky investment options.
The analysis also reveals that when business owners find themselves in a financial position where they cannot make a profit, they tend to leave.
It found that the majority of employees are forced to take on a variety of risks to stay in the company, including: In addition, more than a third of the workers in these firms said that they have had to give up some of their personal freedom and personal responsibility, including leaving their homes and family for work, and taking on more responsibility in their jobs, like buying groceries and household expenses.
When people do not feel that they can turn their businesses around, the companies that are most likely to fail are also those that have the highest levels of employee turnover.
“This means that the companies with the highest number of employees that leave or retire have the largest amounts of turnover in their portfolio,” said John McWhorter, the research director at the Institute for Research and Policy Studies, which commissioned the report.
For the study, researchers used data from the Internal Revenue Service to look at the financials of more than 100,000 small businesses in the United States.
The research shows that while the financial problems that are experienced by many small business owners may be the result of poor management, the underlying reasons for these financial problems are more complex.
“In the long run, it’s a matter of financial sustainability,” McWhort said.
“In the short term, it may be a matter about the health of the business or the company itself.
But in the long term, you’re going to see the effects on the health and well-being of the company.”
The findings are likely to have a ripple effect on other industries.
“I think it’s important to see what we’re doing here,” said McWhin, who has previously worked for the federal government’s Bureau of Labor Statistics.
“There are lots of things we’re finding that are going to have an impact on the entire economy.
The report suggests that it may not be enough to just have more money in the pockets of people, but to be able to do that, they’re going, they need to do some more work.”
What do you think?
Do you think that the big businesses that are the focus of the report are the ones that can withstand financial problems?
Have you heard of other examples of these firms that are having financial difficulties?
Let us know in the comments below.