More than half the American public believes they have what it takes to own and lead a business. Yet of the small businesses that actually do open, half of them fail within four years, in part due to a lack of strong leadership.
"Whether it's a new business or an existing one, owners must clearly communicate a chain of command and a plan to employees to succeed," said Amanda Austin, a vice president at the National Federation of Independent Business.
Nearly 56 percent of adults perceived themselves to have "the required skills, knowledge and experience to start a new business," according to a Global Entrepreneurship Monitor report.
Yet 50 percent of small businesses don't last beyond four years, according to a compilation of three studies by smallbusinessplanned.com.
"Oftentimes companies fail because nobody knows who's in charge," said serial entrepreneur and investor Marcus Lemonis of CNBC's "The Profit."
Lemonis examines a chain of four hair salons on Long Island, N.Y., called Unique Salon and Spa to determine if he'll invest in it. He finds the owner, Carolyn DeVito, is a once-savvy businesswoman whose leadership is badly lacking.
She's in a financial mess because of an ugly legal battle with a decades-old partner. Despite the business generating $4.2 million in annual revenue, DeVito can't afford to update the tired-looking salons. She's in debt and her credit is ruined. She seeks Lemonis' investment on the show.