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Perceived Causes of Small Business Failures: A Research Note

Author

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  • Robert A. Peterson
  • George Kozmetsky
  • Nancy M. Ridgway

Abstract

A nationwide survey of approximately 1,000 small business owners and managers was conducted to investigate the perceived causes of small business failure. In addition, survey participants were asked for suggestions for reducing the number of small business failures. The major cause of small business failures—according to the individuals surveyed—is a lack of management expertise. Consequently, the survey participants’ primary suggestion for decreasing small business failures was to improve management education. 1 1 This research was supported in part by a grant from Safeguard Business Systems, Inc.

Suggested Citation

  • Robert A. Peterson & George Kozmetsky & Nancy M. Ridgway, 1983. "Perceived Causes of Small Business Failures: A Research Note," Entrepreneurship Theory and Practice, , vol. 8(1), pages 15-19, July.
    • Handle: RePEc:sae:entthe:v:8:y:1983:i:1:p:15-19
    DOI: 10.1177/104225878300800106
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    Cited by:

    1. James J. Chrisman & John Leslie, 1989. "Strategic, Administrative, and Operating Problems: The Impact of Outsiders on Small Firm Performance," Entrepreneurship Theory and Practice, , vol. 13(3), pages 37-52, April.
    2. Steven J. Torok & Dale J. Menkhaus & Alan Schroeder, 1991. "Management assistance needs of small food and kindred products processors," Agribusiness, John Wiley & Sons, Ltd., vol. 7(5), pages 447-461.
    3. A. B. Ibrahim & J. R. Goodwin, 1986. "Perceived Causes of Success in Small Business," Entrepreneurship Theory and Practice, , vol. 11(2), pages 41-50, October.
    4. Richard B. Carter & Howard E. Van Auken, 1991. "Personal Equity Investment and Small Business Financial Difficulties," Entrepreneurship Theory and Practice, , vol. 15(2), pages 51-60, January.
    5. Jackson André da Silva & Nério Amboni & Anacleto Ângelo Ortigara & Alexandre Marino Costa, 2014. "Business DNA: an Analysis of Micro and Small Companies in the State of Santa Catarina," Brazilian Business Review, Fucape Business School, vol. 11(2), pages 115-134, March.
    6. Wallace N. Davidson III & Dipa Dutia, 1991. "Debt, Liquidity, and Profitability Problems in Small Firms," Entrepreneurship Theory and Practice, , vol. 16(1), pages 53-64, October.
    7. Berning, C. & Potgieter, P. J., 1996. "Red Meat Processing In The Free State: Problems Encountered At Farm Level," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 35(4), December.
    8. Deeds, David L. & Decarolis, Dona & Coombs, Joseph E., 1997. "The impact of firmspecific capabilities on the amount of capital raised in an initial public offering: Evidence from the biotechnology industry," Journal of Business Venturing, Elsevier, vol. 12(1), pages 31-46, January.
    9. Leonard Tabugbo Onwuzuligbo & Ifeoma Chinelo Amakor, 2019. "Corporate Turnaround and Employee Needs: A Study of Selected Firms in Nigerian," Post-Print hal-03130120, HAL.
    10. James J. Chrisman & Alan Bauerschmidt & Charles W. Hofer, 1998. "The Determinants of New Venture Performance: An Extended Model," Entrepreneurship Theory and Practice, , vol. 23(1), pages 5-29, October.
    11. Maria I. Marshall & Holly L. Schrank, 2020. "Sink or Swim? Impacts of Management Strategies on Small Business Survival and Recovery," Sustainability, MDPI, vol. 12(15), pages 1-21, August.
    12. Heikki Heino, 2006. "Use of borrowed start-up capital and micro enterprises in Mexico: existence of liquidity constraints," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 5(1), pages 1-30, May.
    13. Philip D. Olson, 1985. "Entrepreneurship: Process and Abilities," Entrepreneurship Theory and Practice, , vol. 10(1), pages 25-31, July.
    14. Hakan Uslu & Larry Teeter, 2017. "Shutdown Decision of Firms Based on Variable Costs and Demand," The American Economist, Sage Publications, vol. 62(1), pages 43-65, March.
    15. Nico Dewaelheyns & Cynthia Hulle, 2008. "Legal reform and aggregate small and micro business bankruptcy rates: evidence from the 1997 Belgian bankruptcy code," Small Business Economics, Springer, vol. 31(4), pages 409-424, December.
    16. Rayna, Thierry & Striukova, Ludmila, 2021. "Assessing the effect of 3D printing technologies on entrepreneurship: An exploratory study," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    17. Thierry Rayna & Ludmila Striukova, 2021. "Assessing the effect of 3D printing technologies on entrepreneurship [Évaluer l'effet des technologies d'impression 3D sur l'entrepreneuriat]," Post-Print hal-04096075, HAL.
    18. Vincenzo Maggioni & Mario Sorrentino & Mary Williams, 1999. "Mixed Consequences of Government Aid for New Venture Creation: Evidence from Italy," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 3(3), pages 287-305, September.

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