Several factors can contribute to the risk of default in entrepreneurship. These include:
Insufficient cash flow: Without adequate cash flow, businesses may struggle to meet their financial obligations. Poor financial planning: Inadequate budgeting and forecasting can lead to financial shortfalls. High debt levels: Excessive borrowing can increase the debt burden and make repayment more challenging. Market fluctuations: Changes in market conditions can impact sales and revenue, increasing the risk of default. Operational inefficiencies: Inefficient operations can drain resources and reduce profitability.