Portents of failure within small local businesses : an analysis of the prevalence and applicability of foreign : researched causes of business failure

Abstract

This dissertation deals with the harshest reality in business life: that of business failure. The consequences of business demise stretch beyond the financial embarrassment and economic hardship of the owners. Its aftermath may be devastating to employees, suppliers, customers and society. Since the late 1960s, a serious study of corporate failure began and quickly gathered momentum. There were various attempts to determine what really leads to business collapse, with many authors contributing in drawing up a non-exhaustive list of causes of business failure. The dissertation endeavours to assess the prevalence and applicability of a selected number of foreign-researched causes of business failure within the small local business setting. For such purposes, a survey was carried out among forty-five(45) local, small business owners. From the tested portents of failure; three or more were found to be prevalent amongst the majority of the respondents. Yet, all respondents have been in existence for more than five years, with no current pressing difficulty or intention to close down, and in this respect are proving the literature wrong. Thus, while unearthing any deficiencies within the small local enterprise, the study also points out those factors which are leading to the non-applicability of the researched causes of failure within the small local business setting.