Abstract:
Small and Medium enterprises are back bone of developed and developing economies
around the world. However, the sector has not provided desired level of contribution
and suffers from high failure rate worldwide. The main purpose of this study is to
critically evaluate the causes of failure of SMEs based on literature. The methodology
used this study to review literature systematically using sample of 95 articles published
from 1968-2016. The SME businesses failed due to the lack of availability and optimal
combinations of resources and opportunities, limited access to finance, size, age, poor
market conditions, unbeatable competition, isolation, inadequate skilled labor, wrong
pricing, lack of institutional support, innovation and necessary skills of entrepreneurs.
Improving entrepreneur skills, transform to advanced technology, enhancing staff
skills help to reduce business failure. The findings of the study useful in identifying
practices to be avoided and in aiding educators, consultants, and SME business
support agencies in meeting the needs of the business community.
