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The Reasons and Symptoms of Failure in SME

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  • Jaroslaw Ropega

Abstract

In analyzing the sources and processes of failure, one can see a certain pattern. Namely, management does not notice the critical situation in time, which due to delayed or incompetently carried out repair actions, ends in company collapse. Development thresholds are occurring in the process of the growth and development of the company. They are often tied with crisis in the company. Their occurrence is preceded with symptoms of future crises in many cases. The analysis and understanding of these symptoms by entrepreneurs may help reduce the number of crises in companies of the SME sector and unintentional economic failure. Copyright International Atlantic Economic Society 2011

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  • Jaroslaw Ropega, 2011. "The Reasons and Symptoms of Failure in SME," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(4), pages 476-483, November.
    • Handle: RePEc:kap:iaecre:v:17:y:2011:i:4:p:476-483:10.1007/s11294-011-9316-1
    DOI: 10.1007/s11294-011-9316-1
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    1. H. Ooghe & S. De Prijcker, 2006. "Failure process and causes of company bankruptcy: a typology," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/388, Ghent University, Faculty of Economics and Business Administration.
    2. Stewart Thornhill & Raphael Amit, 2003. "Learning About Failure: Bankruptcy, Firm Age, and the Resource-Based View," Organization Science, INFORMS, vol. 14(5), pages 497-509, October.
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    Cited by:

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    4. Pankaj C. Patel & Mike G. Tsionas & Maria João Guedes, 2022. "Benford's law, small business financial reporting, and survival," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3301-3315, December.
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    6. Nathan Mwenda Mutwiri, 2021. "Covid-19 financial distancing for MSMEs in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(3), pages 357-362, April.
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    9. Darshana Mudalige & Noor Azizi Ismail & Marlin Abdul Malek, 2019. "Exploring the Role of Individual Level and Firm Level Dynamic Capabilities in SMEs’ Internationalization," Journal of International Entrepreneurship, Springer, vol. 17(1), pages 41-74, March.
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    12. Nikolić Nenad & Jovanović Ivan & Nikolić Đorđe & Mihajlović Ivan & Schulte Peter, 2019. "Investigation of the Factors Influencing SME Failure as a Function of Its Prevention and Fast Recovery after Failure," Entrepreneurship Research Journal, De Gruyter, vol. 9(3), pages 1-21, July.
    13. Amitai Etzioni, 2014. "Humble Decision-Making Theory," Public Management Review, Taylor & Francis Journals, vol. 16(5), pages 611-619, June.
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    More about this item

    Keywords

    SMEs; Business failure; Reasons of failure; Symptoms of failure; D22; G33; L26;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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