Entrepreneurship Failure Essay

1476 Words Dec 16th, 2012 6 Pages
Entrepreneurship Failure

Background of Petite Palate Company
Business enterprises are established to exploit existing and emerging market opportunities. Competition in these markets is expected to stiffen as more entrants come in, raising the number of competing enterprises in the market. Creativity and innovativeness of an entrepreneur pushes the business to the next level. These are the scenarios that Petite Palate Company had to deal in the with U.S baby food industry when it established its operations in the year 2006. The company was set up in Long Island City, New York.
Petite Palate specialized in producing baby food, and targeted Northeast and Midwest markets of the United States. At the time the company started its
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This followed the belief that such food was healthier for children, compared to other types of baby foods that were not frozen; like food contained in jars and pouches (Smith, 2007). This business vision lasted for four years, since the company started its operations in the year 2006, only to close four years later in October 2010. In the four-year period that the company operated, it remained within its belief of frozen baby food as opposed to shelf-stable formulations that its rival firms provided in the markets.
Reasons for Failure
Business enterprises fail due to myriad reasons, all of which revolve around their plans, business strategies, and overall operations. The most contributing factors to business failure are financial, market, or economic-based. Mismanagement of resources has also seen many businesses collapse on the verge of their success. Poor planning, overestimation of business potential, and poor implementation of business strategies are also contributing to business failure (Platt, 2009).
In the context of Petite Palate Company, the setting of its operations could have foretold that failure was looming. The company set up its operations in a substantially competitive market, but then limited its production to baby food that could be frozen. As earlier mentioned, the company regarded frozen food as healthier that shelf-stable formulations. This was the belief of the company’s founders; Lisa Beels and Christine Naylor. This belief plunged the

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