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The high rate of microbusiness failure has been at least partly attributed to increased poverty levels and worsening economic situation within underdeveloped economies. Based on Fiedlers’s theory of strategic contingency, i explored the perceptions of microbusiness owners’ to identify what causes microbusiness failure within underdeveloped economies. The emerging themes included lack of strategic planning and leadership skills,lack of financing, poor infrastructure and marketing, corruption, harsh environmental conditions, competition, tribalism or negative ethnicity, rural-urban migration, bad business location, among others. The findings could be used as a basis for business management and development that can offer local entrepreneurs sources of information regarding the causes of microbusiness failure and ways to prevent future failures. Implications for social change include implementing strategies that may help to prevent or reduce microbusiness failure.
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Dr.Cosmas Sikahala is a business financial consultant and a lecturer in strategic business management,entrepreneurial, and international finance. He holds an MBA and a Doctorate in finance from Fontbonne and Walden Universities respectively.
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