IDEAS home Printed from https://ideas.repec.org/a/bba/j00001/v2y2023i2p70-77d38.html
   My bibliography  Save this article

Five Common Finance and Accounting Problems of Start-Up Companies

Author

Listed:
  • Derrald Stice

    (HKU Business School, University of Hong Kong, Hong Kong, China)

  • Earl K. Stice

    (Marriott School of Business, Brigham Young University, Provo, USA)

  • James D. Stice

    (Marriott School of Business, Brigham Young University, Provo, USA)

Abstract

You have a product or service for which the world has been waiting. You've scraped together enough cash to get your idea off the ground. You are confident that your business will succeed. And yet, it is often the case that a short time later you are out of business. Numbers from the U.S. Bureau of Labor Statistics indicate that about half of new businesses fail within the first five years. And with those business failures go the life savings and the dreams of the person who started the business. This article describes five finance and accounting pitfalls that should be avoided in order to increase the likelihood that a small business will succeed. Of course, the most common reason for a small business to fail is that customers don't want the product or service. But small businesses are also often killed because of predictable and preventable finance and accounting mistakes: insufficient capital, poor cash management, poor record keeping and controls, improper product pricing, and uncontrolled growth.

Suggested Citation

  • Derrald Stice & Earl K. Stice & James D. Stice, 2023. "Five Common Finance and Accounting Problems of Start-Up Companies," Journal of Economic Analysis, Anser Press, vol. 2(2), pages 70-77, April.
    • Handle: RePEc:bba:j00001:v:2:y:2023:i:2:p:70-77:d:38
    as

    Download full text from publisher

    File URL: https://www.anserpress.org/journal/jea/2/2/26/pdf
    Download Restriction: no
    File URL: https://www.anserpress.org/journal/jea/2/2/26
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Derrald Stice & Earl K. Stice & James D. Stice, 2017. "Cash Flow Problems Can Kill Profitable Companies," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 8(6), pages 46-54, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hao, Xiaoli & Wen, Shufang & Li, Ke & Wu, Junwei & Wu, Haitao & Hao, Yu, 2023. "Environmental governance, executive incentive, and enterprise performance: Evidence from Chinese mineral enterprises," Resources Policy, Elsevier, vol. 85(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bba:j00001:v:2:y:2023:i:2:p:70-77:d:38. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ramona Wang (email available below). General contact details of provider: https://www.anserpress.org .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.