In summary, analysis of the businesses observed in this study reveals that certain conditions are more likely to have fatal effects on a business venture than others. Undercapitalization, managerial in-competence, and personality defects appear to be insurmountable liabilities which cannot be mitigated by the presence of the other assets. Although adequate capital and managerial competence are indispensable for survival, they are rarely sufficient in themselves to insure it. They must be supplemented by other factors, such as motivation, hard work, persistence, and flexibility.
Kurt B. Mayer and Sidney Goldstein,
Small Business Growth and Survival During the First Two Years,
18 Vanderbilt Law Review
Available at: https://scholarship.law.vanderbilt.edu/vlr/vol18/iss4/6