Entrepreneurship Failure Essay
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 …show more content…
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