Despite the significance of SMEs to the economy and national development, Africa has a high rate of business failures and short-lived businesses. In Nigeria SMEs account for 48 percent of the national GDP, 96 percent of businesses, and 84 percent of employment in the country, according to a PricewaterhouseCoopers report. In contrast, due to the country’s dire economic circumstances, at least 1.
Many of the business failure factors are frequently categorized as “poor management or lack of access,” though the failure predictors are in two broad categories: internal factors and external factors .
Leadership tussles and conflicts within management, business owners, and/or power struggles cannot be ignored. Failure to provide value for money can make customers disgruntled and avoid patronage. Poor inventory management, failure to differentiate products and services in a highly competitive environment and the strong bargaining power of buyers can cause business failure.
The reality