A Qualitative Review and Analysis of the Causes of Small-Scale Business Failures in Nigeria

Abstract

Small businesses play a crucial role in stimulating economic prosperity and nurturing socio-economic advancement in Nigeria. However, despite their potential contributions, many small-scale businesses face significant challenges that hinders their success and sustainability. These challenges lead to their early failure. This research utilizes a qualitative methodology to investigate the factors contributing to the failure of small-scale businesses in Nigeria. It specifically examines the viewpoints of SME entrepreneurs, government officials, and data analysts. Thematic analysis of interview data reveals that SME entrepreneurs identify government policies as major barriers to success, while government officials emphasize the importance of effective entrepreneurial strategies. Data analysts highlight the complex interaction between socio-economic factors and government policies in shaping business outcomes. The study recommends policy reforms towards reducing regulatory burdens, improving access to finance, enhancing entrepreneurship education and training programs, and providing support services relating to mentorship, networking opportunities, and technical assistance.