The predominant factors influencing business failures in Sabah: a comparison on gender and location

Nazarina Jamil, and Raihana Firdaus Seah Abdullah, and Siti Faeizah Mohd Ali, and Samsulbahri Mohd Nasir, (2010) The predominant factors influencing business failures in Sabah: a comparison on gender and location. (Unpublished)

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Abstract

The role of small business is very crucial to the stability and health of a country's economy. However, many small business populations are aware of what appears to be an excessive failure among small business owners. It is estimated that the failure rate of small businesses is between 70% - 80% and millions of ringgit are lost on business ventures because of essentially avoidable mistakes and problems. Problems encountered by small businesses are numerous and can be described amongst others as being environmental, marketing, management and financial in nature. Therefore, it is necessary to analyze the various causes and consequences of business failures to minimize the failure rate. Business failure can be difficult to analyze due to the variety of reasons a small business owner may terminate his or her business. The objective of this study is to compare the business failure rates in Sabah based on gender (male and female) and location (town and outskirt area), to analyze the predominant factors that determine the failure among businesses in town and outskirt area and to analyze the predominant factors that determine the failure among male and female businesses. A convenience sampling using "drop and collect" system was used to solicit the responses of 300 small businesses. However, only 143 responded. Descriptive statistics were established and a factor analysis was performed. Cronbach Alpha coeeficients were calculated to determine the internal reliability of the measuring instruments. T -test was used to test the significant differences between the samples. The following were identified as the most predominant factors that influencing small businesses in Sabah, namely: industry, competition, legal (external factors) and marketing, accounting, management, human resource and personal characteristics (internal factors). Most of the problems categories did not show any significant differences when gender and location were test as the moderating variables. Women and men also have their fair share of contributions towards business failure. Nevertheless, town area businesses are more prone to business failure compared to outskirt area.

Item Type: Research Report
Uncontrolled Keywords: Business failure, gender, location, Sabah
Subjects: H Social Sciences > HG Finance
Depositing User: Noraini
Date Deposited: 20 Aug 2019 01:42
Last Modified: 20 Aug 2019 01:42
URI: http://eprints.ums.edu.my/id/eprint/23352

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