Savanna Combs opened a clothing boutique two years ago. Unfortunately, the boutique failed after 18 months. Savanna attributes the failure of her boutique to the fact that her employees couldn't adjust quickly enough to their new roles and that her boutique lacked a "track record" with outside buyers and sellers, which made it difficult to form partnerships and make sales. Savanna suffered from what research calls the ________.

Question

Quizplus · Accepted Answer

The liability of newness refers to the challenges and disadvantages that new ventures face due to their lack of experience, reputation, and history. Savanna's boutique lacked a track record with outside buyers and sellers, which made it difficult to form partnerships and make sales. The burden of novelty and millstone of innovation are not commonly used terms in research related to new venture failure, and the liability of preparedness is not applicable to Savanna's situation. The burden of newness is similar to the liability of newness but is not a commonly used term in this context.

Savanna Combs Opened a Clothing Boutique Two Years Ago