Generating factors of success and failure of companies: Empirical research on Turkish companies

Abstract

In the economic field, business development is crucial for the socioeconomic development. On the one hand, the creation of companies can be an effective solution of the unemployment. On the other hand, business development is an essential factor of economic growth. Thus, the development of a country is correlated with its business development. However, business results are not always guaranteed. For this reason, controlling a number of factors related to results is an absolute necessity. Our research aims at studying a set of elements contributing to the results of the success and failure of Turkish companies. For this purpose, we considered a sample of 46 companies, which is subdivided into two sub-samples, the first represents the “Successful companies "; this category represents 74% of the total sample. The second represents the remaining 26% formed the “Failure companies”. Empirical results highlight the importance of factors related to; the Business plan, the innovation, the marketing strategy, and the human resources. However, ignoring these factors lead to the business failure. Therefore, the prediction of success or failure factors will deliver key information to decision-makers on the mistakes to be avoided and the precautions to be taken.