An Appraisal of the Causes of Small Businesses Failures

Abstract

The important role being played by small scale business in the economic development of any nation cannot be overemphasized. Most of the developed and developing nations reached their present state of economic development through the effective management of small scale businesses. However, the most pathetic situation is that most of these businesses especially in Nigeria died a natural death at their infant stages. The central focus of this paper is to examine the causes of small scale businesses failure at their early stage. So many are starting a business, but only few of such investors survives in the market or business environment whilst the rest fails. However, the reason for business failures differ from one business to another, country to country, and the magnitude of the nature of the business and the general environment. The methods of data collection for the research work are the mixture of  primary data in for an interview with (20)Twenty Small Businesses in Damaturu and Secondary data from text books, journals, magazines and other relevant publications. This research unveils some of the factors responsible for small-scale businesses failure viz; lack of access to modern technology, poor  financial support, poor location etc. in the same vein, possible solutions or remedies to the failure may include; strong financial support from government and financial institutions, access to modern technology, effective training on management and proper record keeping.