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The paper investigates risk factors of business failure of small-sized manufacturing firms in Sweden. Traditionally, linear models are applied to estimate the influence of risk factors on business failure by using continuous data. By contrast, in this study a count data approach is employed to deduce consistent Poisson, Quasi-Poisson, and Negative-Binomial estimators by using bankruptcy count data of small-sized Swedish manufacturing firms. Findings confirm that interest and exchange rates are significant determinants of business failure. Moreover, we found that openness is a determinant of business success. Our main finding highlights the role of business productivity, which turned out to be the main risk factor of business failure.

This study draws insights from the literatures on entrepreneurial learning from failure and organizational imprinting to develop an evolutionary phase model to explain how prior business failure experience influences successive newly started businesses. Using multiple case studies of entrepreneurs located in an institutionally developing society in Sub-Sahara Africa, we uncover four distinctive phases of postentrepreneurial business failure: grief and despair, transition, formation, and legacy phases. We find that while the grieving and transition phases entailed processes of reflecting and learning lessons from the business failure experiences, the formation and legacy phases involve processes of imprinting entrepreneurs' experiential knowledge on their successive new start-up firms. We conclude by outlining a number of fruitful avenues for future research.

This paper, using a flexible and more robust analytical tool, neural networks models, analyzes the most important factors in determining business failure among small, high-technology firms. Using the resource-based view and organizational ecology as the theoretical lenses through which to view the problem, the paper modeled a number of variables that stood as proxies for resources. The results suggest profit, in the form of retained earnings, is the most significant factor that determines failure among these firms. Other factors of importance are governance structure, location and firm size. Importantly, the issue of governance structure as a resource has received very little attention in existing works on business failure, and as such, this paper makes a contribution to the literature by adding governance as an important resource.

This study aims to uncover the chain of Village Owned Enterprises (BUMDes) business failures in the West Halmahera Regency. BUMDes business is a village government business that is run to achieve the goals of profit and society welfare. Empirical facts show that after the Village formed BUMDes and made a sizeable Equity Participation in BUMDes, what happened was that BUMDes BUMdes businesses experienced suspended animation. As a result, until now, the existence of BUMDes has not been able to contribute to Village Original Revenue and improve the welfare of rural communities as expected by the Village and the Community. The researcher uses a qualitative approach with the Transcendental Phenomenology method to achieve this goal. The research information includes elements of the village government, BUMDes managers, and village communities who have been in contact with BUMDes. The study results provide evidence that the failure of the BUMDes business is caused by the high conflict of interest of the village head and the indifference of the Village Consultative Body (BPD) towards BUMDes. This research contributes both theoretically to the development of regional financial management science and being information material for the West Halmahera Regency Government to make it easier for local governments to break the chain of failure of the BUMDes business.

Two events are currently changing the landscape for business restructurings in the European Union: the 'Restructuring Recommendation' (RR) of the European Commission, issued in 2014, and the 2015 recast of the European Insolvency Regulation (EIR). In this paper, we critically review the RR and put it into the context of the reform of the EIR. We find that the recast EIR and the RR do not dovetail perfectly—a restructuring proceeding as proposed by the RR would not necessarily be within the scope of the recast EIR; we also suggest that, in any case, the EIR is not optimally designed to facilitate restructurings, given its treatment of secured creditors. Regarding the regulatory approach pursued in the RR, the Commission rightly pushes towards harmonisation with respect to Member States' restructuring regimes—regulatory competition is not a sensible regulatory alternative in this area. However, we criticise both the methodology and scope of the harmonisation proposal of the RR: sketchy minimum harmonisation of restructuring rules leaves huge potential for residual diversity in Member States' restructuring laws, and the Commission's narrow focus on restructuring proceedings ignores several aspects of the complicated interaction between the Member States' formal insolvency laws and the restructuring mechanism proposed. Further, we disagree with the substantive recommendations for Member States' restructuring laws suggested by the RR: they wrongly require financial difficulties or a likelihood of insolvency as an entry test for the recommended restructuring proceeding, and the process appears susceptible to abuse by sophisticated financial investors—it does not provide for the mandatory appointment of a supervisor and allows significant curtailments of creditor rights without sufficient safeguards in place. Instead, we propose an efficient debtor-in-possession (DIP) regime as an alternative that could be initiated regardless of a firm's solvency, provided that it is economically viable and that the filing is not ...

In light of growing scholarly works on business failure across the social science domains, it is surprising that past studies have largely overlooked how extreme environmental shocks and 'black swan' events such as those caused by the coronavirus (COVID-19) pandemic and other global crisis, can precipitate business failures. Drawing insights from the current literature on business failure and the unfolding event of COVID-19, we highlight the paradoxes posed by novel exogenous shocks (that is, shocks that transcend past experiences) and the implications for SMEs. The pandemic has accelerated the reconfiguration of the relationship between state and markets, increasing the divide between those with political connections and those without, it may pose new legitimacy challenges for some players even as others seem less concerned by such matters, whilst experiential knowledge resources may be both an advantage and a burden.

Government economic stabilization policies are a major cause of business failure.