The Presence Of Endogenous Factors Leading To The Failure Of Small Businesses In The Presevo Valley

Abstract

The business success today, in a very dynamic market with rapid changes, under the pressure of various environmental forces, is more difficult for small businesses. This is due to intense competition, the large population of small businesses, but also due to the specific characteristics of small businesses, both structurally and managerially, which make them fragile and non-resistant to the influence of various environmental factors. Some of these factors lead to failure and even to the closure of small businesses. This is evidenced by the closure of many small businesses every year in the Republic of Serbia, especially in the Presevo Valley, as one of the most undeveloped regions. The failure of small businesses is caused by many factors, both endogenous and exogenous. Although managers cannot influence exogenous factors, they can identify and manage endogenous factors in their enterprises to avoid the failure of their small business.
The purpose of this study is to investigate the presence of endogenous factors leading to the failure of active small businesses in the Presevo Valley. Through empirical research of owners/managers of active small businesses in the Presevo Valley, the aim is to identify the organizational structure of small businesses and the managerial practices they implement. Furthermore, to determine if the research results correspond to the endogenous factors leading to the failure of the small business. The research results help owners/managers focus on changing and improving these factors (in case of their presence) and better manage to avoid failure, maintaining stability of their small business.