External Environmental Factors and Failure of Small and Medium Enterprises in Kano Metropolis

Abubakar, Salihu Abdullahi; Junaidu, Abubakar Sambo

doi:10.20448/journal.501.2019.62.180.185

Cited by 4 publications

(7 citation statements)

References 8 publications

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“…The Cronbach’s alpha for this component was 0.83 greater than 0.7, indicating that the reliability of the items of this component was confirmed. These findings concur with those of Stoeberl et al (1998), Nangoli et al (2013), Bushe (2019), Milosevic et al , 2019; Abubakar and Junaidu (2019).…”

Section: Resultssupporting

confidence: 91%

“…These include fierce competition (0.847), high rent charges (0.733), multiple and high taxes (0.720), high interest rate (0.444) and lack of financing for growth (0.428). The Cronbach's alpha for this component was 0.83 greater Milosevic et al, 2019;Abubakar and Junaidu (2019).…”

Section: Principal Component Analysismentioning

confidence: 91%

“…A study by Abubakar and Junaidu (2019) investigated the relationship between environmental factors and the failure of SMEs in the Kano metropolis. A survey instrument was used to collect data from a sample of failed SMEs and analysed using multiple regression and descriptive techniques.…”

Section: Empirical Studiesmentioning

confidence: 99%

“…Therefore, the failure of the SME often depends on the management’s inability to deal with them anticipatively and sufficiently (Stoeberl et al , 1998). They include inadequate economic environment, market competition, inadequate funding system to SMEs needs, high tax, poor infrastructure, insufficient government policies and globalisation (Stoeberl et al , 1998; Nangoli et al , 2013; Bushe, 2019; Abubakar and Junaidu, 2019). For instance, according to Carter (2019), the failure of many SMEs is a result of inadequate financing; most owners of SMEs use their own savings or family and relatives’ resources to start the business.…”

Section: Literature Reviewmentioning

confidence: 99%

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Key failure factors of start-up women owned SMEs in service sector in Kigali: a principal component analysis approach

Kasema

2021

XJM

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Purpose This study aims to develop and test a framework for studying the failure of new women entrepreneurs in the small- and medium-sized enterprises (SMEs) sector. Design/methodology/approach Using a sample of 114 unsuccessful entrepreneurs in Kigali, Rwanda, this study aimed to identify key failure factors of women-owned SMEs. This study used mixed methods where quantitative data were analysed using the principal component approach with Varimax rotation to reduce the variables to only three clusters. Findings The study findings revealed that the failure of women-owned SMEs results from the entrepreneur’s inability followed by the enterprise incompetence, which are both internally controllable factors and the inauspicious business environment. These findings contribute to the validity of the dynamic capability theory by explaining how well internal and external factors must stay glued together to avoid failure among women-owned SMEs, something that was not yet previously well documented so far. Originality/value New SMEs are considered a noteworthy constituent of Rwandan development. Unfortunately, most new SMEs, in general, do not grow; their failure rate is high (70%), which raised many worries for both researchers and policymakers as to why this occurs at this stage of business growth. Therefore, to the best of the authors’ knowledge this paper is the first to analyse the reasons for the failure of Rwandan women-owned SMEs in the service sector. These findings are important because they suggest that policies designed to reduce the incidence of SMEs’ failure should take account of the two main factors influencing failure among women entrepreneurs.

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Section: Resultssupporting

confidence: 91%

Section: Principal Component Analysismentioning

confidence: 91%

Section: Empirical Studiesmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Key failure factors of start-up women owned SMEs in service sector in Kigali: a principal component analysis approach

Kasema

2021

XJM

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“…In developing countries, small and micro enterprises are a driving force for economic development, job creation, and poverty reduction. Besides, small companies have been identified as a feeder operation for large-scale industries [25]. Because of this, Ethiopia's Micro and Small Enterprise Growth Program has received sufficient government attention since 2004/2005.…”

Section: Small and Micro-enterprise Definition In Ethiopiamentioning

confidence: 99%

Driving Model of Determinant Factors Affecting the Performance of Small and Micro Enterprises: Empirical Evidence from Amhara Region, Ethiopia

Yutang¹,

Ae²

2021

Preprint

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The purpose of this study is to examine the driving model of determinant factors that affects the performance of small and micro enterprises empirical evidence from Amhara Region, Ethiopia. The study used primary and secondary data from manufacturing, construction, urban agriculture, trade, and service entrepreneurs found in Bahirdar, Dessie & Gonder Cities using a purposive sampling technique. It also used the descriptive research design with a self-administered survey questionnaire. The Statistical analysis tools, SPSS and Stata tool, software were applied to analyze the data. Multiple regression model results revealed that access to credit, initial capital, working premises (location), industry category, market linkage, ICT adoption have a positive relationship and a major impact on the Amhara region's enterprise performance determinant. Hence, the outcome variable, enterprise performance, is highly affected by all predicted variables. As the study finding shows, a lack of access to credit, inflation, market linkage, working premises (location), Initial capital, Information communication Technology problems are critical challenges of SMEs. The Regional Government, including Technique and Vocational Enterprise Development Bureau, Micro Finance Institutions, Entrepreneurs, should take corrective action to provide sufficient credit and long-term loans to protect inflation. Government facilitates enterprise integration training about financial management and record-keeping. Moreover, this study proposed a sustainable cluster management approach that solves their challenges in an integrated way. Furthermore, other research should be conducted in this area.

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The Mediating Impact of the Small and Medium Enterprises Development Agency of Nigeria on the Relationship Between the Critical Success Factors and SMEs' Success

Gumel

2024

SSRN Journal

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External Environmental Factors and Failure of Small and Medium Enterprises in Kano Metropolis

Cited by 4 publications

References 8 publications

Key failure factors of start-up women owned SMEs in service sector in Kigali: a principal component analysis approach

Key failure factors of start-up women owned SMEs in service sector in Kigali: a principal component analysis approach

Driving Model of Determinant Factors Affecting the Performance of Small and Micro Enterprises: Empirical Evidence from Amhara Region, Ethiopia

The Mediating Impact of the Small and Medium Enterprises Development Agency of Nigeria on the Relationship Between the Critical Success Factors and SMEs' Success

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