Factors contributing to business failure and eventual exit among selected tutorial services
Business failure has a very broad definition yet it is very important to understand this business concept perceived to be an undesired phenomenon for any business regardless of size such as tutorial centers. This study explored the internal and external factors and the relevance of business registra...
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2013
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| Online Access: | https://animorepository.dlsu.edu.ph/etd_masteral/4638 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | Business failure has a very broad definition yet it is very important to understand this business concept perceived to be an undesired phenomenon for any business regardless of size such as tutorial centers. This study explored the internal and external factors and the relevance of business registration with government agencies in business failure and eventual exit among selected private-owned tutorial centers in the Philippines. The selected private-owned tutorial centers were categorized into two: non-registered and registered. Employing a case study methodology, it was determined that internal factors, particularly owner/founder/manager orientations, are the main causes of business failure, while external factors are only secondary for selected tutorial centers. The owner/founder/manager orientations include: motivation, characteristics/behavior, skill managerial deficiencies, capabilities and financial knowledge shortcomings. Registered tutorial centers believed that all are vital for business failure, while non-registered tutorial centers only believed that skill/managerial deficiencies and capabilities are vital for business failure. Non-compliance with government policies and regulations are more likely lead to business failure among registered tutorial centers than non-registered tutorial centers. To prevent business failure, all the respondents believed that structural or firm issues should be changed. The registered and non-registered also believed that financial conditions and owner/founder orientations, respectively, should be changed to prevent business failure. All four tutorial centers studied chose business exit so as a consequence of business failure. Retraining and development, increase in production and supply, and marketing and advertisement are the strategies to cope with business failure by all the respondents. The registered tutorial centers added lessening of expenses as another strategy to cope with business failure. |
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