REASONS FOR INEFFECTIVE MANAGEMENT DECISIONS IN SMALL BUSINESSES

Abstract

The high mortality rate of small and medium businesses is often the result of irrational management decisions, supported by a huge number of unjustified risks. However, what is the reason for these risks to be taken? The aim of this work was to find out the reasons for unsuccessful management decisions, the awareness of which would help to avoid similar mistakes in the future. In this article the factors that push entrepreneurs to ineffective actions will be studied, as well as a model of cause-and-effect relationships will be complied, based on the case about international supplies of unrealizable for the company volumes of goods. Investing the already limited resources of small businesses has always been a considerable issue for entrepreneurs. But the analysis of failed practices can provide valuable information for developing recommendations for investment directions, which the essence of this article is based on.