International Journal of Accounting, Finance and Risk Management

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Assessing Business Failures in Ghana; Case Study of Selected Businesses

Received: 6 February 2022    Accepted: 2 March 2022    Published: 9 March 2022
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Abstract

Unemployment rate in Sub-Saharan Africa is on the ascendancy and the surest way to resolve this problem is by ensuring the sustenance of businesses. The success of businesses is, therefore, of paramount importance to a nation like Ghana; where many businesses fail by their fifth anniversary. Hence, it is of utmost importance to research into the failure of businesses in Ghana in order to safeguard jobs. The writer has, therefore, decided to conduct research into the causes of business failures in Ghana by interacting with some entrepreneurs whose businesses had collapsed, also by obtaining data on some businesses that suffered such fate. In this work, the researcher obtained primary and secondary data from selected businesses that collapsed in Ghana and analysed the causes of the collapse of these businesses. The research showed that the major reasons for the collapse of the selected businesses were; liquidity problems, lack of marketing strategies and lack of market research. Other important factors were diversion of funds and use of short term funds to finance long term (non-current) assets. He has also sought to suggest some remedies to that effect. Nonetheless, he has observed that few businesses that have applied best business practices have been outstanding in performance. The researcher, therefore, has commented on the performance of one of such businesses and advised others to emulate its way of doing business in order to be successful.

DOI 10.11648/j.ijafrm.20220701.13
Published in International Journal of Accounting, Finance and Risk Management (Volume 7, Issue 1, March 2022)
Page(s) 20-26
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Business Failure, Marketing Strategies, Management, Entrepreneurs

References
[1] Dias A and Teixeira A. A. C (2017), the anatomy of business failure: A qualitative account of its implications for future business success. European Journal of Business and Economics, vol. 26, issue 1. pp 2-20.
[2] Walsh G. S and Cunningham J. A (2016), business Failure and Entrepreneurship: Emergence, Evolution and Future Research, Vol. 12, No. 3 (2016) 163–285.
[3] Amankwah-Amoah J and Wang X, Journal of Business Research, Volume 98, May 2019, Pages 367-369.
[4] http://www.moyak.com/papers/small-business-failure.html; =11.05.2017.
[5] https://onstrategyhq.com/resources/ten-common-causes-of-business-failure/ 11.05.2017.
[6] Ames. M. D (1983) Small business management, West Group.
[7] Berle G (1989) The do-it yourself business book, 1st edition, Wiley.
[8] Mason M. K (2017), small-business-failure.htm.
[9] Covey S [1989]. The 7 Habits of Highly Effective People. Simon and Schuster.
[10] Rue L. W, Byars L, Rue L, Byars L. L (2010) Human Resource Management | 10th Edition McGraw-Hill Education.
[11] Kontus E and Mihanovic D (2018) Management of liquidity and liquid assets in small and medium-sized enterprises Economic Research-Ekonomska Istraživanja Volume 32, 2019 - Issue 1.
[12] Kotler P and Armsrtong G (2001) Principles of Marketing, ninth edition Prentice Hall.
[13] Varadarajan R (2010) Strategic Marketing and Marketing Strategy: Domain, Definition, Fundamental Issues and Foundational Premises, Journal of the Academy of Marketing Science 38 (2): 119-140.
[14] ACCA [2017] Business Analysis, BPP Publishing.
[15] Thompson Jnr, A, A and Strickland III A. J (2003) Strategic Management, Mc Graw Hill Higher Education.
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  • APA Style

    Dickson Akoto. (2022). Assessing Business Failures in Ghana; Case Study of Selected Businesses. International Journal of Accounting, Finance and Risk Management, 7(1), 20-26. https://doi.org/10.11648/j.ijafrm.20220701.13

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    ACS Style

    Dickson Akoto. Assessing Business Failures in Ghana; Case Study of Selected Businesses. Int. J. Account. Finance Risk Manag. 2022, 7(1), 20-26. doi: 10.11648/j.ijafrm.20220701.13

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    AMA Style

    Dickson Akoto. Assessing Business Failures in Ghana; Case Study of Selected Businesses. Int J Account Finance Risk Manag. 2022;7(1):20-26. doi: 10.11648/j.ijafrm.20220701.13

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  • @article{10.11648/j.ijafrm.20220701.13,
      author = {Dickson Akoto},
      title = {Assessing Business Failures in Ghana; Case Study of Selected Businesses},
      journal = {International Journal of Accounting, Finance and Risk Management},
      volume = {7},
      number = {1},
      pages = {20-26},
      doi = {10.11648/j.ijafrm.20220701.13},
      url = {https://doi.org/10.11648/j.ijafrm.20220701.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20220701.13},
      abstract = {Unemployment rate in Sub-Saharan Africa is on the ascendancy and the surest way to resolve this problem is by ensuring the sustenance of businesses. The success of businesses is, therefore, of paramount importance to a nation like Ghana; where many businesses fail by their fifth anniversary. Hence, it is of utmost importance to research into the failure of businesses in Ghana in order to safeguard jobs. The writer has, therefore, decided to conduct research into the causes of business failures in Ghana by interacting with some entrepreneurs whose businesses had collapsed, also by obtaining data on some businesses that suffered such fate. In this work, the researcher obtained primary and secondary data from selected businesses that collapsed in Ghana and analysed the causes of the collapse of these businesses. The research showed that the major reasons for the collapse of the selected businesses were; liquidity problems, lack of marketing strategies and lack of market research. Other important factors were diversion of funds and use of short term funds to finance long term (non-current) assets. He has also sought to suggest some remedies to that effect. Nonetheless, he has observed that few businesses that have applied best business practices have been outstanding in performance. The researcher, therefore, has commented on the performance of one of such businesses and advised others to emulate its way of doing business in order to be successful.},
     year = {2022}
    }
    

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    JF  - International Journal of Accounting, Finance and Risk Management
    JO  - International Journal of Accounting, Finance and Risk Management
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    AB  - Unemployment rate in Sub-Saharan Africa is on the ascendancy and the surest way to resolve this problem is by ensuring the sustenance of businesses. The success of businesses is, therefore, of paramount importance to a nation like Ghana; where many businesses fail by their fifth anniversary. Hence, it is of utmost importance to research into the failure of businesses in Ghana in order to safeguard jobs. The writer has, therefore, decided to conduct research into the causes of business failures in Ghana by interacting with some entrepreneurs whose businesses had collapsed, also by obtaining data on some businesses that suffered such fate. In this work, the researcher obtained primary and secondary data from selected businesses that collapsed in Ghana and analysed the causes of the collapse of these businesses. The research showed that the major reasons for the collapse of the selected businesses were; liquidity problems, lack of marketing strategies and lack of market research. Other important factors were diversion of funds and use of short term funds to finance long term (non-current) assets. He has also sought to suggest some remedies to that effect. Nonetheless, he has observed that few businesses that have applied best business practices have been outstanding in performance. The researcher, therefore, has commented on the performance of one of such businesses and advised others to emulate its way of doing business in order to be successful.
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Author Information
  • Radford Business School, Radford University College, Accra, Ghana

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