Several factors contribute to the prevalence of short termism in business: - Pressure from Shareholders: Shareholders often expect quick returns on their investments, pushing companies to deliver immediate results. - Executive Incentives: Many executive compensation packages are tied to short-term performance metrics, such as stock prices or quarterly earnings. - Market Expectations: Analysts and the market frequently focus on short-term financial results, leading companies to align their strategies accordingly. - Competitive Pressure: In highly competitive industries, firms may adopt short-term tactics to outperform rivals and gain market share quickly.