The blame game: The real reasons why SMEs fail

Abstract

Purpose

Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Why do firms fail? The reasons behind given for corporate failure vary widely. During the financial crisis, firms failed because of the financial crisis, or during the Coronavirus pandemic firms failed due to the Coronavirus pandemic. When there are global market problems, those problems tend to get the blame for most things, including firms going under. But other reasons are sometimes given as well – that a firm is carrying too much debt to be sustainable, or a hypercompetitive market, or there are unsurmountable problems in the supply chain. Very often, these reasons are not scrutinized very closely as everyone moves on to invest in another company or try and find work elsewhere.

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

Original/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Citation

(2020), "The blame game: The real reasons why SMEs fail", Strategic Direction, Vol. 36 No. 7, pp. 11-13. https://doi.org/10.1108/SD-04-2020-0076