Business Failures Factors of Micro and Small Companies in Services Sector in the City of Naviraí-MS

Abstract

This study aimed to understand the business failure factors of companies micro and small companies in the services sector in the city of Naviraí-MS. Specifically, we sought to identify which aspects lead companies to failure and describe the difficulties faced by entrepreneurs in the sector. For this, we conducted a descriptive qualitative research using semi-structured interviews with six entrepreneurs who were owners of seven companies that closed their doors. The main results show that the business failure factors are related to the manager's initiative, management problems, and external situations. We concluded that market studies, pre-opening planning, and understanding local legislation are necessary for companies to continue operating for longer and avoid failure. In addition, there is a need for public policies to support and train small entrepreneurs, in addition to restructuring bureaucratic processes for opening new businesses