An exploration of community business failure
In: Policy & politics: advancing knowledge in public and social policy, Band 21, Heft 3, S. 219-230
ISSN: 0305-5736
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In: Policy & politics: advancing knowledge in public and social policy, Band 21, Heft 3, S. 219-230
ISSN: 0305-5736
In: Contemporary economic policy: a journal of Western Economic Association International, Band 9, Heft 4, S. 93-105
ISSN: 1465-7287
The rate of business failures is widely quoted but is little understood. This study reviews the availability and usefulness of data on business failures and discusses the major determinants of fluctuations in the business failure rate. It shows that the age distribution of the population of firms is the largest determinant of failures and that the rate of failure has only a small countercyclical fluctuation. The study documents a substantial decline in the rate of failures between 1962 and 1979 and a smaller increase after 1980. The evidence presented suggests that the long decline is caused by the fall in failure rates in certain states and that part of the increase during the 1980s is due to changes in Dun & Bradstreet's data collection procedures.
In: Business history, Band 27, Heft 1, S. 75-99
ISSN: 1743-7938
In: Australian journal of social issues: AJSI, Band 29, Heft 3, S. 195-218
ISSN: 1839-4655
The paper contrasts the characteristics of bankrupt proprietors with those of debtors using Part X of the Bankruptcy Act. The findings, which are based partly on a survey of official files on bankrupts and Part X debtors, reveal class‐related differences between the two groups, with bankrupts coming from relatively underprivileged backgrounds. This finding is moderated by factors such as ethnicity, partnership arrangements and time in business. The data are interpreted sociologically, with special reference to ethnomethodological concepts like deviance and stigma which emphasise the denouncement and symbolic expulsion of debtors; and structuralist explanations which associate differential use of the Bankruptcy Act with social inequality.
In: Policy & politics, Band 21, Heft 3, S. 219-230
ISSN: 1470-8442
Community businesses are enterprises which are owned and controlled by local residents and which aim to create jobs for local and unemployed people. Although they received generous support from both local and central government during the 1980s, growing concern is being expressed about their performance and contribution. This paper deals with a failed community business which, for a short period, appeared to be a successful example of what could be achieved in a disadvantaged community. The study highlights problems which can emerge where inexperienced volunteers are responsible for overseeing an increasingly complex commercial organisation with a weak management structure. It underlines the need for support agencies to ensure that up to date financial records are kept, for business growth to be tied to organisational capacity, and for local people to have access to specialist training and external support.
In: Academia Revista Latinoamericana de Administración, Band 27, Heft 1, S. 75-91
Purpose
The purpose of this paper is to analyze the potential impact of stakeholders' behavior on business failure, through its influence on the generation and distribution of value added.
Design/methodology/approach
Using a sample of 2,277 Spanish SMEs – half of which were businesses that failed during the years 2006‐2009 – the authors conducted an empirical study on a number of variables representing the participation of stakeholders in the generation and distribution of value added. This was undertaken in order to discern differential behavior between the variables and prove their usefulness in predicting business failure. For this purpose, a mean difference analysis between failed and non‐failed businesses and a multivariate logistic regression model were applied.
Findings
The results obtained show that the stakeholders' behavior in relation to their participation in the generation and distribution of value added, affects the likelihood of business failure.
Originality/value
This paper provides empirical evidence of the influence of stakeholders' behavior on the likelihood of business failure, through their participation in the generation and distribution of value added. The results are useful for creating management strategies because they offer advice on the implementation of business management models based on the stakeholder approach, and on the appropriate involvement of all those who make up the conglomerate in the generation and distribution of value added. They also emphasize the value of recording information related to the Value‐Added Statement in order to explain a firm's level of dependence on its stakeholders and assess the firm's risk of insolvency.
In: Enterprise & society: the international journal of business history, Band 5, Heft 4, S. 562-582
ISSN: 1467-2235
Is it really useful to focus the interest of business historians on major companies that failed in recent years, like Parmalat in Italy or Enron in the United States? What can we learn from studying cases like that of the French company Schneider, a first mover in metallurgy, armaments, and nuclear energy, which for almost 150 years dominated the company town Le Creusot, where the Business History Conference held its fiftieth anniversary meeting in 2004, but which has now disappeared?
In: Bulletin of economic research, Band 61, Heft 1, S. 47-72
ISSN: 1467-8586
ABSTRACTWe examine the interactions between business failures and macroeconomic aggregates, and specifically the accounts of policy‐induced changes in the macroeconomy for the observed fluctuations of UK business failures in the period 1966–2003 using the vector error‐correction model (VECM). The results demonstrate that macroeconomic aggregates, i.e., interest rate, credit, profits, inflation and business births, exert differential impacts on business failures both in the short run and in the long run. The study reveals that structural changes in the financial and real sectors during the examined period have made an impact on the way in which the macroeconomy affects business failures. In particular, business failures are increasingly reacting to monetary policy changes in the post‐1980 period. Furthermore, the shocks to business failures can generate large fluctuations in macroeconomic aggregates, suggesting the importance of corporate balance sheets in financial stability and economic growth. The paper's findings carry policy implications that are related to the survival of firms in distress and finance‐driven business cycles.
In: Journal of political economy, Band 95, Heft 6, S. 1196-1216
ISSN: 1537-534X
In: Strategic Change, Band 4, Heft 4, S. 185-200
ISSN: 1099-1697
AbstractThe majority of existing studies of small business failure tend to focus upon either the symptoms arising from problems within the firm or upon the reasons cited for failure. Comparatively little analysis of the root cause has been undertaken.Failure and success are usually defined in rational terms which ignore stakeholder aspirations.Many owner‐managers pursue personal objectives which inhibit the probability of success if measured using these rational criteria.The root cause of small business failure is almost invariably a lack of management attention to strategic issues.Notwithstanding the fact that common skills and abilities are required, the management process in small firms is unique and cannot be considered to be the same as professional management in larger firms practised on a reduced scale.The multiplicity of roles expected of the owner‐manager often causes dissonance which enhances the probability of poor decision making and inappropriate action.Successful small firms practise strategic management either consciously and visibily or unconsciously and invisibly.
In: Review of Pacific Basin Financial Markets and Policies, Band 9, Heft 3, S. 491-508
ISSN: 1793-6705
Case-based reasoning (CBR) is a problem-solving paradigm that uses past experiences to solve new problems. Nearest neighbor is a common CBR algorithm for retrieving similar cases, whose similarity function is sensitive to irrelevant attributes. Taking the relevancy of the attributes into account can reduce this sensitivity, leading to a more effective retrieval of similar cases. In this paper, statistical evaluation is used for assigning relative importance of the attributes. This approach is applied to predict business failures in Australia using financial data. The results in this study indicate it is an effective and competitive alternative to predict business failures in a comprehensible manner. This study also investigates the usefulness of non-financial data derived from auditor's and directors' reports for business failure prediction. The results suggest that the particular non-financial attributes identified are not as effective as the financial attributes in explaining business failures.
In: Business history, Band 25, Heft 1, S. 3-10
ISSN: 1743-7938
In: U.S. news & world report, S. 40-43
ISSN: 0041-5537