Causes of failure and bankruptcy within small to medium enterprises

Abstract

This thesis investigates the major factors that lead to failure and bankruptcy in small to medium sized enterprises (SMEs). A qualitative multi case study approach was used to identify internal and external causes of decline internal causes including high risk strategic decisions, financial mismanagement and leadership failure. External pressure including global and local competition, environmental shifts, and market shifts further amplified these internal weaknesses. The results of the study indicated that SME failure was gradual process shaped by the interaction of these factors. This study contributes to the understanding of SME resilience and offers crucial insight into improving strategic planning and financial stability in SMEs.