Investigating In To The Causes Of Small Medium Enterprises Failure In Garowe - Puntland Somalia

Author(s)

Abdihakiim Faarah Mohamed(Garaase) , Abdirizak Mohamed Abdillahi (Siyaad) , Mohamed Yuusuf Ali (Shiine) ,

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Volume 14 - September 2025 (09)

Abstract

Small business failure has been a problem in Somalia in general and Garowe -Puntland in particular for years. Therefore, this study was conducted to identify internal and external causes that contribute to small business failure in Garowe, Puntland. This study was survey research in which questionnaires were used to collect data from 120 respondents who were owners of failed small businesses. The data was analyzed using descriptive statistical tools with help of SPSS 21. Moreover, Relative Importance Index (RII) was employed to the Eight most significant internal and external factors that cause small business failure in Garowe, Puntland. With regard to factors caused failure of the small businesses, the study found that the most powerful internal and External causes were: Bad debt payment and Poor business site location, Lack of business plan and al so Lack of business innovation, High operating expenses like wages and rents High taxes, Political instability and High interest rates

Keywords

External courses, internal courses, Small Medium Enterprises, Failure.

References

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