AN EMPIRICAL INVESTIGATION OF CAUSES OF FAILURE IN SMALL BUSINESS AND STRATEGIES TO REDUCE IT

Abstract

This empirical research is an attempt to identify a set of variables that are associated with small-business failure. Eighty-five small firms operating in Montreal and Toronto responded to a lengthy questionnaire. Results of the statistical analysis suggest that managerial incompetence and lack of entrepreneurial skills are two major causes of failure in small business. Several strategies were proposed to reduce the high failure rate.

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