Assessing Business Failures in Ghana; Case Study of Selected Businesses

Dickson Akoto

doi:doi:10.11648/j.ijafrm.20220701.13

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Assessing Business Failures in Ghana; Case Study of Selected Businesses

Dickson Akoto

Published in International Journal of Accounting, Finance and Risk Management (Volume 7, Issue 1)

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.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 7, Issue 1)
DOI	10.11648/j.ijafrm.20220701.13
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

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[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.
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[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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TY  - JOUR
T1  - Assessing Business Failures in Ghana; Case Study of Selected Businesses
AU  - Dickson Akoto
Y1  - 2022/03/09
PY  - 2022
N1  - https://doi.org/10.11648/j.ijafrm.20220701.13
DO  - 10.11648/j.ijafrm.20220701.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 20
EP  - 26
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20220701.13
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.
VL  - 7
IS  - 1
ER  -

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Author Information

Dickson Akoto

Radford Business School, Radford University College, Accra, Ghana

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Plain Text BibTeX RIS

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

Copy | Download

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}
}

Copy | Download

TY  - JOUR
T1  - Assessing Business Failures in Ghana; Case Study of Selected Businesses
AU  - Dickson Akoto
Y1  - 2022/03/09
PY  - 2022
N1  - https://doi.org/10.11648/j.ijafrm.20220701.13
DO  - 10.11648/j.ijafrm.20220701.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 20
EP  - 26
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20220701.13
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.
VL  - 7
IS  - 1
ER  -

Copy | Download