EXPLORATION OF ENDOGENOUS CONSTRAINTS LEADING TO FAILURE OF MICRO SMALL AND MEDIUM ENTERPRISES (MSMEs) IN DEVELOPING COUNTRIES (A CASE STUDY OF MALLAM, GREATER ACCRA REGION OF GHANA)

Abstract

Micro Small and Medium Enterprises (MSMEs) are considered the most enterprises that create jobs in the country when running consistently and very well leading to the achievement of high Gross Domestic Product (GDP) reflecting in the macro economy. However, this inheritance and dreams of MSMEs are not realized due to some endogenous (internal) metrics or factors. The study seeks to investigate the underlying internal factors leading to failure of selected MSMEs in Mallam in Greater Accra Region of Ghana. However, the entire population targeted for this research was 85 while 70 respondents were randomly drawn out of the total population. The 70 selected respondents assisted in proper flow of information required for the success of the research. The research has employed descriptive research design since it portrays accurate responses from owners that are targeted, MSMEs' managers in the targeted population. Structured questionnaires were used to collect primary data through direct interview of entrepreneurs. Both qualitative and quantitative methods of data collection were applied in this study. The collected data was analyzed using Statistical Package for Social Sciences (SPSS). The findings unraveled two set of endogenous constraints such as entrepreneurial constraints and business or enterprise constraints that lead selected MSMEs to fail in their businesses. Some of the entrepreneurial constraints are poor skills in management, gender and age of entrepreneur, lack of education, and lack of experience. On the other hand, the business challenges are lack of capital, lack of recording accounting data, poor business plan, age and size of company. The study would assist industry players to apply the various constraints identified in their decision-making process. In addition, the research would contribute to existing literature. � 2021 IEEE