Assessing Business Failures in Ghana; Case Study of Selected Businesses

Abstract

Unemployment rate in Sub-Saharan Africa is on the ascendancy and the surest way to resolve this problem is by ensuring the sustenance of businesses. The success of businesses is, therefore, of paramount importance to a nation like Ghana; where many businesses fail by their fifth anniversary. Hence, it is of utmost importance to research into the failure of businesses in Ghana in order to safeguard jobs. The writer has, therefore, decided to conduct research into the causes of business failures in Ghana by interacting with some entrepreneurs whose businesses had collapsed, also by obtaining data on some businesses that suffered such fate. In this work, the researcher obtained primary and secondary data from selected businesses that collapsed in Ghana and analysed the causes of the collapse of these businesses. The research showed that the major reasons for the collapse of the selected businesses were; liquidity problems, lack of marketing strategies and lack of market research. Other important factors were diversion of funds and use of short term funds to finance long term (non-current) assets. He has also sought to suggest some remedies to that effect. Nonetheless, he has observed that few businesses that have applied best business practices have been outstanding in performance. The researcher, therefore, has commented on the performance of one of such businesses and advised others to emulate its way of doing business in order to be successful.