Causes of Failures for Entrepreneurs in Iran

Considering the importance of entrepreneurship in the economic and social progress of developed countries, analysis of the entrepreneurship process and causes of its failure and success in the context of economic, social, and cultural conditions of our country will significantly help its advancement, creation of new job opportunities and will decrease dependency of economy on oil. The purpose of this study is to identify the causes of business failure in Iran and determination of their level of importance based on the survey of an acceptable number of unsuccessful entrepreneurs by using questionnaires. The results of this research illustrate that there are three external causes of failure: inadequate economic sphere in the society, public policy and procedures, and inadequate financing by financial institutions and banks and three internal causes of failure: work despondence, unreal evaluation of business plan, and non- participation in entrepreneurial networks.