International Journal of Business and Risk Management
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International Journal of Business and Risk Management. 2019, 2(1), 19-26
DOI: 10.12691/ijbrm-2-1-4
Open AccessArticle

Modeling and Analysis of Business Failures: Application to Moroccan SMEs

Lamia Jamel1, 2, , Meriem Jouirou3, Monia Ben Ltaifa4 and Raied Al Harbi5

1Department of Economic, College of Business Administration, Taibah University, Medinah, Saudi Arabia

2Department of Economic, Faculty of Economic Sciences and Management of Sousse, Sousse University, Sousse, Tunisia

3Department Finance, Higher Institute of Informatics and Management of Kairouan, Kairouan University, Kairouan, Tunisia

4Department of Economic, Faculty of Economic Sciences and Management of Sfax, Sfax University, Sfax, Tunisia

5Department of Finance, Community College, Taibah University, Medinah, Saudi Arabia

Pub. Date: October 05, 2019

Cite this paper:
Lamia Jamel, Meriem Jouirou, Monia Ben Ltaifa and Raied Al Harbi. Modeling and Analysis of Business Failures: Application to Moroccan SMEs. International Journal of Business and Risk Management. 2019; 2(1):19-26. doi: 10.12691/ijbrm-2-1-4

Abstract

Business failure is undoubtedly one of the most raised issues in the field of business management. Small and medium-sized enterprises (SMEs) play an important economic role in many countries, especially in developing countries. In Morocco, for example, they make up more than 90% of Moroccan companies and contribute around 50% to job creation and considerably to value-added. But despite this, most of them are at risk of default and there is very little research and empirical research on this topic in Morocco, as in many developing countries. This work aims to contribute to the understanding of the determinants of business failure using the chi-square independence test. The goal is to explain but also to explain a methodology that can be applied to explain business failures by determining their internal factors. Our empirical results seem to support the claim that the main cause of such failures lies in the absence of a strategic vision and managerial knowledge and culture among SME managers.

Keywords:
SME failure chi-square test Gharb Chrarda Beni Hssen Kenitra province

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