Business failure should be of concern in most industralised countries and the importance of accurately evaluating the phenomenon from a management and investment point of view is enormous. Were it possible to predict failure with a certain degree of confidence, steps could be taken to rectify the situation and the benefit would accrue to all of the stakeholders in the macroenvironment. In essence, the profitability of a business is influenced by two sets of variables. In the first instance, it is influenced by a variety of internal (microeconomic) variables which are firm- specific and which management is generally able to control. A further distinction in this regard may be made between the financial and non-financial variables. In the second instance, it is generally accepted that profitability will be influenced by a number of external (macroeconomic) variables which are generally beyond the control of management. In the main, however, the profitability of the firm is generally determined by a combination of both sets of factors. To date, a great deal of research has been undertaken in an attempt to establish a reliable model which may be used to predict failure. This has mainly been confined to the microeconomic variables which can be used to predict failure and attempts have been made to isolate either a single financial ratio or a number of financial and non-financial variables which can be used to model corporate failure. The research has met with a certain degree of success although this appears to be confined to the economic environment to which the models have been applied. The models are less successful when applied to other macroenvironments. Limited research has been undertaken into the macroeconomic variables which contribute to business failure or to a combination of the two types of variables. It is appropriate therefore that further consideration be given to the establishment of a model incorporating ALL the variables which could contribute to corporate failure. The purpose of this research is to undertake an investigation of micro- and macroeconomic variables that are freely available to reserachers and which may be used in a failure prediction model. The intention is to obtain a comprehensive, yet simple model which can be used as an overall predictor of PENDING failure.

O presente trabalho visa conhecer as causas das falências das micro e pequenas empresas – MPEs, no município de Guarapuava-PR., no período de 2006 a 2010. Na pesquisa foi levantado o número de MPEs criadas e encerradas no período em estudo, nos setores comercial, industrial e de serviços; além disso, como amostra, foram entrevistados seis representantes de instituições vinculadas e de fomento às MPEs, entendendo que a identificação dos prováveis fatores causadores da extinção dessas empresas poderá contribuir para o surgimento de novos empreendimentos em condições mais favoráveis à obtenção de sucesso empresarial. A metodologia adotada foi a pesquisa qualitativa, onde foram submetidas aos respondentes uma série de indagações no campo das variáveis econômicas, sociais e ambientais e a performance das empresas extintas nos diferentes quesitos dessas variáveis. Os resultados obtidos evidenciaram uma menor ou ínfima contribuição das variáveis sociais e ambientais e uma participação predominante das variáveis econômicas como causadoras das falências das empresas, dado ao pequeno conhecimento de gestão empresarial, com falhas e omissões em todas as áreas funcionais das mesmas. Concluiu-se, também, que mesmo atravessando dificuldades de toda ordem, ocorreu nas MPEs que fecharam as portas, um grande obstáculo de natureza cultural de não procurar auxílio, orientação ou consultoria junto às instituições especializadas. / The present study aims to know the causes of micro and small enterprises – MPEs bankruptcy in Guarapuava –PR, from 2006 to 2010. In the research, it was raised the number of MPEs that were created and closed during that period in the commercial, industrial and services sectors; besides, six representatives from linked institutions and of promotion for the MPEs, understanding that the identification of the probable causes of the extinction of those enterprises can contribute for the arising of new ventures in better conditions to enterprising success. The methodology approach used was the qualitative research, where the respondents were asked to answer several questions about the economical, social and environmental variables and the performance of the extinct enterprises in the different issues of those variables. The obtained results evidenced a minor or very small contribution of the social and environmental variables and a very big one of the economical variable as causes for the enterprises bankruptcy, due to the little knowledge of business management, with failures and omissions in all their functional areas. It was possible to conclude as well that, even going through problems of all sorts, an obstacle of cultural nature occurred in the MEPs that closed their doors: they did not seek for assistance, orientation or consulting with the specialized institutions.

O presente trabalho visa conhecer as causas das falências das micro e pequenas empresas – MPEs, no município de Guarapuava-PR., no período de 2006 a 2010. Na pesquisa foi levantado o número de MPEs criadas e encerradas no período em estudo, nos setores comercial, industrial e de serviços; além disso, como amostra, foram entrevistados seis representantes de instituições vinculadas e de fomento às MPEs, entendendo que a identificação dos prováveis fatores causadores da extinção dessas empresas poderá contribuir para o surgimento de novos empreendimentos em condições mais favoráveis à obtenção de sucesso empresarial. A metodologia adotada foi a pesquisa qualitativa, onde foram submetidas aos respondentes uma série de indagações no campo das variáveis econômicas, sociais e ambientais e a performance das empresas extintas nos diferentes quesitos dessas variáveis. Os resultados obtidos evidenciaram uma menor ou ínfima contribuição das variáveis sociais e ambientais e uma participação predominante das variáveis econômicas como causadoras das falências das empresas, dado ao pequeno conhecimento de gestão empresarial, com falhas e omissões em todas as áreas funcionais das mesmas. Concluiu-se, também, que mesmo atravessando dificuldades de toda ordem, ocorreu nas MPEs que fecharam as portas, um grande obstáculo de natureza cultural de não procurar auxílio, orientação ou consultoria junto às instituições especializadas. / The present study aims to know the causes of micro and small enterprises – MPEs bankruptcy in Guarapuava –PR, from 2006 to 2010. In the research, it was raised the number of MPEs that were created and closed during that period in the commercial, industrial and services sectors; besides, six representatives from linked institutions and of promotion for the MPEs, understanding that the identification of the probable causes of the extinction of those enterprises can contribute for the arising of new ventures in better conditions to enterprising success. The methodology approach used was the qualitative research, where the respondents were asked to answer several questions about the economical, social and environmental variables and the performance of the extinct enterprises in the different issues of those variables. The obtained results evidenced a minor or very small contribution of the social and environmental variables and a very big one of the economical variable as causes for the enterprises bankruptcy, due to the little knowledge of business management, with failures and omissions in all their functional areas. It was possible to conclude as well that, even going through problems of all sorts, an obstacle of cultural nature occurred in the MEPs that closed their doors: they did not seek for assistance, orientation or consulting with the specialized institutions.

The phenomenon of business failure has attracted research interest in finance literature partly because of its impact on the U.S economy. Whereas an impressive body of knowledge has been accumulated on this subject thus far, the hospitality literature has lacked empirical studies that seek to explain the nature of this phenomenon in the hospitality industry. The restaurant industry has consistently had the most business failures of any single segment within the retail trade sector in the eighties. Therefore, there were three purposes in this study: 1) to develop a model for predicting business failure which can be a useful tool in helping researchers and industry practitioners to identify warning signs of business failure in the restaurant industry, 2) to determine whether the financial variables of a predictive model for business failure in the restaurant industry are the same as in the hotel industry, and 3) to determine whether the financial variables that are associated with reorganization are different from those that are associated with liquidation in the restaurant industry. The sample consisted of 23 failed and 23 non-failed restaurant firms, and 15 failed and 15 non-failed hotel firms within the period of 1982-1993. The predictive business failure models were developed through logistic regression analysis employing 8 financial variables based on one year prior to business failure. The models were tested at two and three years prior to business failure. The empirical evidence illustrated that the business failure model developed for the restaurant industry is capable of predicting business failure, and even bankruptcy with high classification accuracy. The relationship between reorganization and liquidation was investigated through logistic regression analysis employing two sets of indicators for capital structure and profitability. The sample consisted of 14 reorganizers and 10 liquidators from the restaurant industry. The empirical evidence showed that reorganization and liquidation are not dependent on each other, that is, reorganization and liquidation cannot be determined by both Capital structure and profitability in the restaurant a failed [end of author-provided abstract]. / Ph. D.

No description available.

by Lo Wai Mei. / Thesis (M.B.A.)--Chinese University of Hong Kong, 1998. / Includes bibliographical references (leaves 74-75). / ACKNOWLEDGEMENTS --- p.i / ABSTRACT --- p.ii / TABLE OF CONTENTS --- p.iii / LIST OF TABLES --- p.vi / LIST OF CHARTS --- p.vii / CHAPTER / Chapter I --- INTRODUCTION --- p.1 / Chapter 1.1 --- Background --- p.1 / Chapter 1.2 --- Recent Development --- p.2 / Chapter 1.3 --- Objectives of Study --- p.3 / Chapter 1.4 --- Scope of Study --- p.4 / Chapter 1.5 --- Definition of terms --- p.6 / Chapter II --- LITERATURE REVIEW --- p.7 / Chapter 2.1 --- Studies on Corporate Failure --- p.7 / Chapter 2.2 --- Studies on causes and impacts of Corporate Failure --- p.9 / Chapter 2.3 --- Studies on remedial measure and turnaround strategy --- p.11 / Chapter III --- METHODOLOGY --- p.13 / Chapter 3.1 --- Data Analyses --- p.13 / Chapter 3.2 --- Case Studies --- p.14 / Chapter 3.3 --- Limitations --- p.15 / Chapter IV. --- RESULTS FROM DATA ANALYSES --- p.16 / Chapter 4.1 --- Performance trend of 85 loss companies --- p.16 / Chapter 4.1.1 --- Analysis on size of loss --- p.17 / Chapter 4.1.2 --- Analyses on Return on Equity & Operating Profit Margin --- p.18 / Chapter 4.1.3 --- Analysis by Net Asset Value --- p.19 / Chapter 4.2 --- Analyses on Fundamental Features --- p.21 / Chapter 4.2.1 --- Loss companies by Industry --- p.21 / Chapter 4.2.2 --- Loss companies by Listing year --- p.22 / Chapter 4.3 --- Analyses on Operational Management --- p.23 / Chapter 4.3.1 --- Turnover trend over 3 years --- p.23 / Chapter 4.3.2 --- Turnover by Major Activities --- p.24 / Chapter 4.3.3 --- Turnover by Geographical Market Segment --- p.24 / Chapter 4.3.4 --- Analysis on Working Capital Management --- p.25 / Chapter 4.4 --- Analyses on Treasury Management --- p.26 / Chapter 4.4.1 --- Analysis on Capital Structure --- p.26 / Chapter 4.4.2 --- Analyses on Debt Portfolio Management - By Maturity --- p.27 / Chapter 4.4.3 --- Analyses on Debt Portfolio Management 一 Source of Finance --- p.28 / Chapter 4.4.4 --- Analysis on Debt Portfolio Management - Debt by Security --- p.29 / Chapter 4.4.5 --- Analysis on Cash Flow Management --- p.30 / Chapter V. --- CASE STUDIES --- p.31 / Chapter 5.1 --- Wo Kee Hong (Holdings) Ltd --- p.31 / Chapter 5.2 --- Swank International Manufacturing Ltd --- p.35 / Chapter 5.3 --- Kosonic International Holdings Ltd --- p.39 / Chapter 5.4 --- Emperor China (Concept) Ltd --- p.43 / Chapter 5.5 --- Asia Commercial Holdings Ltd --- p.44 / Chapter 5.6 --- Yaohan Hong Kong Corporation Ltd --- p.48 / Chapter VI. --- SUMMARY OF FINDINGS --- p.52 / Chapter 6.1 --- Summary of findings from Data Analyses --- p.52 / Chapter 6.1.1 --- Fundamental Features --- p.54 / Chapter 6.1.2 --- Operational Performance --- p.55 / Chapter 6.1.3 --- Working Capital Management --- p.56 / Chapter 6.1.4 --- Treasury Management --- p.57 / Chapter 6.2 --- Summary of findings from Case Studies --- p.61 / Chapter VII. --- COMMENTS AND RECOMMENDATIONS --- p.64 / Chapter 7.1 --- Recent developments-Major threats faced by HK listed companies --- p.65 / Chapter 7.2 --- Recommendations --- p.69 / Chapter VIII. --- CONCLUSION --- p.73 / BIBLIOGRAPHY --- p.74 / APPENDICES

A dissertation submitted in fulfilment of the requirement for the Degree of Master of Technology: Business Administration, Durban University of Technology, 2013. / Poverty reduction and employment creation are some of the top United Nations Millennium Development goals as per the UN Summit of 2000. In both the developed and developing world this can best be achieved through an increase in employers. In the developing world, especially in Africa, small, medium and micro enterprises have been found to be the engine driving employment creation, economic development and poverty reduction. Having mentioned the crucial role, small and micro enterprises play in the economy and wellbeing of the people, their sustenance, success and continuity are of vital importance. Many small and micro businesses are started every year but most of them fail in their infancy due to a number of problems they face, especially lack of financial planning knowledge which is the main reason for embarking on this study. The main purpose of this study is to investigate the reality of financial planning knowledge among small and micro enterprises, especially from the perspective of owner-managers. An exploration is undertaken to see and understand their perception and attitude towards financial planning processes. The study proposes to find out what financial planning knowledge the owner-manager has tools they are currently employing in their businesses and whether or not, and to what extent do, they implement the advice from financial experts. The research wants to further explore what financial information is collected, recorded, how it is used (or not) to make business decisions and evaluate the enterprise’s success or failure in relation to what they know, use and implement as far as financial planning is concerned. The study used a quantitative technique to collect data and a questionnaire was personally administered to 100 respondents in the Durban CBD including Warwick Triangle and the response rate was 100%. Descriptive and inferential statistics were used to analyse the data. The overall findings of the study were that most of the small and micro enterprises do not understand what financial planning is or what is involved in financial planning hence their inability to properly plan their finances and manage their businesses accordingly. Some of them were found to be able to calculate a mark-up on their selling price but no records were kept. For those who have a chance to get some advice from a financial expert, do implement the advice given, but in their own way they see suitable for their particular businesses. However, they do not implement the exact advice as given only in the form they see fit for their enterprises.

Thesis (PhD)--University of Stellenbosch, 2005. / ENGLISH ABSTRACT: Several mixed industry prediction models about failure have been reasonably successful in differentiating between successful companies and those that have failed. The challenge, however, is to venture into the grey area in between and to identify companies, which are financially unstable, at an early stage. Early identification enables management to intervene timeously in an attempt to prevent failure. Failure is defined as either liquidation, delisting, suspension of listing or a substantial change in structure. The grey area focused on in this study is overtrading. Overtrading is triggered by the company growing at too high a rate relative to its specific structure. Cash is necessary to fund expansion, whether for an increase in inventories, credit sales or new non-current assets. If the company does not generate enough cash to fund this expansion, it has to be financed through external sources. The longer the period of growth and the higher the growth rate, the more the cash requirements. From the theoretical model underlying overtrading, it was found that: • the higher the growth in sales, • the smaller the profit margin, and • the higher the net current assets in proportion to total assets, the lower the cash flow from operating activities before dividends were paid (CFO). Any company ought to generate enough cash from its daily activities in order to maintain the existing level of business, to repay loans, to replace assets and to pay dividends. If the internal generation of cash is insufficient to finance these activities, existing cash resources will be consumed, unproductive non-current assets will be sold and possibly also some of the productive non-current assets. The outcome for such a company is a business combination or liquidation. Due to the fact that cash plays such a big role in failure, cash flow variables constitute the majority of the independent variables used in the development of the failure prediction models. The overtrading ratio was developed as a measurement tool to quantify overtrading. As long as the company generates a positive CFO, it is not so much at risk as a company that does not succeed in generating a positive CFO. Therefore, a negative CFO for a three-year period was decided on as the norm for identifying possible financial difficulty. A company is involved in overtrading if the sum of CFO for three years less the sum of the adjusted profit for the three years, divided by the absolute value of the sum of the adjusted profit for the three years equals -1 or smaller in the case of a company with a cumulative profit for the three years; and smaller than nought in the case of a company with a cumulative loss for the three years. South African industrial companies listed for at least three years during the period 1974 to 2003, were identified. From a total of 6 662 cumulative three-year periods, 944 overtrading years were identified. Failure occurred in 212 out of 526 companies involved in overtrading between January 1974 and August 1989. 120 out of 199 companies involved in overtrading between September 1989 and November 1995 failed, while 90 out of 127 companies involved in overtrading, failed between December 1995 and June 2000. By June 2005 it was already evident that 49 out of 92 companies involved in overtrading between July 2000 and December 2003, had already failed. Companies involved in overtrading, may survive artificially for lengthy periods with the support of providers of capital. It can therefore be expected that failure prediction models will not achieve a better accuracy rate than achieved by probabilities. Six failure prediction models utilising classification tree algorithms were developed. Using data from two periods, two different models were developed; one for growth and recession phases of the economy, the other without distinction between economic phases. The first period was September 1989 to June 2000, the other December 1995 to June 2000. June 2000 was chosen as the cut-off, since a period of five years after an overtrading year was necessary to follow-up whether the company had failed. Each universe was split in two – the learning sample, more or less 60%, and the test sample, more or less 40%. The models were developed from the learning sample and the test sample was used as substantiation of the results of the developed model. The total classification accuracy of the three best models, one for the growth-phase, one for the recession-phase and one mixed economy model, is respectively 72,99%, 96,67% and 80,26% and the classification accuracy for the failed companies 75,29%, 100% and 85,19% respectively. The total prediction accuracy of the three models is respectively 69,23%, 80,95% and 72,55%, and that of the failed companies 73,68%, 86,67% and 83,33%. The accuracy of all the models was found to be higher than what the accuracy would have been if all the companies involved in overtrading were merely classified as having failed. From the results of the different tests, it seems that Ver3, the growth in sales from year 1 to year 3, is probably the most important independent variable in the classification between failed and non-failed overtrading years. This corroborates the theory underlying overtrading that indicates that a high sales growth puts a company at risk for cash flow problems. Companies where the cash flow problems develop because of an increase in current assets will be intercepted by the overtrading ratio. Companies where cash flow problems develop due to replacement of non-current assets, will not necessarily be intercepted by the overtrading ratio as CFO that is used in the overtrading ratio does not allow for replacement of non-current assets. It is therefore necessary to adjust CFO to a free cash flow CFO. Depreciation is used as an alternative for replacement investment since disclosure of replacement investment is not required. Depreciation is theoretically the fraction of the value of an asset lost during the year; this value needs to be replaced. By subtracting the depreciation for the year from CFO, this amount will be more representative of the cash position of the company after considering all the normal transactions in order to sustain the business. After all the adjustments for a free cash flow, six models were developed for the different periods and economic phases. The accuracy of these models were better than what the accuracy would have been if overtrading years were merely classified as failed. Implementing these models would therefore improve specificity. From the tests performed, Ver3 and KVB3/TB (the cumulative CFO for the three years over total assets) seem to be the most important independent variables in the classification between failed and non-failed when considering free cash flow. This is informative as KVB3:TB represents a fictional amount, as if the company spent an amount equal to depreciation on replacement investment. / AFRIKAANSE OPSOMMING: Heelwat gemengde industrie-mislukkingvoorspellingsmodelle was al redelik suksesvol in die onderskeid tussen mislukte en suksesvolle maatskappye. Die uitdaging is egter om die grys area tussen dié uiterstes te betree en ’n maatskappy wat finansieel onstabiel is, vroegtydig te identifiseer. Vroegtydige identifikasie stel die bestuur in staat om betyds in te gryp en mislukking te voorkom. Mislukking word as likwidasie, òf denotering, òf opskorting van notering, òf ’n wesenlike struktuurverandering, gedefinieer. Die grys area waarop die fokus in hierdie studie val, is oorbedryf. Oorbedryf word veroorsaak deurdat die maatskappy teen ’n te hoë koers relatief tot sy spesifieke struktuur groei. Kontant is nodig om uitbreiding, hetsy ’n toename in voorraad, kredietverkope of nuwe nie-bedryfsbates, te finansier. Indien die besigheid nie genoeg kontant genereer om hierdie uitbreiding te finansier nie, moet dit vanuit eksterne bronne gefinansier word. Hoe langer die tydperk van groei voortduur en hoe hoër die groeikoers is, hoe meer is die kontantbehoeftes. Uit die teoretiese model wat onderliggend is aan oorbedryf, is bevind dat: • hoe hoër die groei in verkope, • hoe kleiner die winspersentasie, en • hoe hoër die bedryfskapitaal in verhouding tot die totale bates; hoe laer is die kontantvloei uit bedryfsaktiwiteite voor dividende betaal (KVB). Enige besigheid behoort genoeg kontant uit dag-tot-dag-aktiwiteite te genereer ten einde die bestaande vlak van besigheid vol te hou, lenings terug te betaal, bates te vervang en dividende te betaal. Indien die interne kontantgenerering onvoldoende is om hierdie aktiwiteite te finansier, sal bestaande kontantbronne uitgewis word, onproduktiewe nie-bedryfsbates sal verkoop word en moontlik ook van die produktiewe nie-bedryfsbates. Die uiteinde vir so ’n maatskappy is ’n besigheidsoorname of ’n likwidasie. Aangesien kontantvloei so ’n groot rol in mislukking speel, is kontantvloeiveranderlikes die meerderheid van die onafhanklike veranderlikes wat in die ontwikkeling van die mislukkingvoorspellingsmodelle gebruik is. Die oorbedryfsratio is as ’n maatstaf ontwikkel om oorbedryf te meet. Solank as wat ’n maatskappy ’n positiewe KVB genereer, is hy nie so riskant soos ’n maatskappy wat nie daarin kan slaag om positiewe kontant te genereer nie. Daarom is ’n negatiewe kumulatiewe KVB vir ’n drie-jaar-tydperk as die norm gestel om moontlike finansiële nood te identifiseer. ’n Maatskappy is besig met oorbedryf indien die som van die KVB vir drie jaar minus die som van die aangepaste wins vir die drie jaar, gedeel deur die absolute waarde van die som van die aangepaste wins vir die drie jaar, gelyk aan of kleiner as -1 is, in die geval van ’n maatskappy wat ’n kumulatiewe wins vir die drie jaar het; en kleiner as nul in die geval van ’n maatskappy wat ’n kumulatiewe verlies vir die drie jaar het. Alle Suid-Afrikaanse genoteerde industriële maatskappye wat vir ten minste drie jaar gedurende die tydperk 1974 tot 2003 genoteer was, is geïdentifiseer. Uit ’n totaal van 6 662 kumulatiewe drie-jaar-tydperke was daar 944 oorbedryfsjare. Vanaf Januarie 1974 tot Augustus 1989 was daar 526 oorbedryfsjare, waarvan 212 misluk het. Vanaf September 1989 tot November 1995 was daar 199 oorbedryfsjare, waarvan 120 misluk het en vanaf Desember 1995 tot Junie 2000 het 90 van 127 oorbedryfsjare misluk. Teen Junie 2005 was dit reeds bekend dat 49 van die 92 oorbedryfsjare tussen Julie 2000 en Desember 2003 misluk het. Oorbedryfsmaatskappye bly soms vir uitgebreide tydperke kunsmatig voortbestaan, indien die verskaffers van kapitaal hulle dra. Die verwagting was dus dat mislukkingvoorspellingsmodelle nie ’n beter akkuraatheid sou behaal as wat waarskynlikhede sou bepaal nie. Ses mislukkingvoorspellingsmodelle is met behulp van die klassifikasieboomalgoritme ontwikkel. Een model elk vir die groeifase en die resessie-fase van die ekonomie en een model sonder onderskeid van die ekonomiese fase is met die gebruikmaking van twee tydperke se data ontwikkel. Die eerste tydperk was September 1989 tot Junie 2000 en die ander Desember 1995 tot Junie 2000. Junie 2000 is as die afsnypunt gebruik aangesien ’n vyf-jaaropvolgtydperk na ’n oorbedryfsjaar nodig is om vas te stel of die maatskappy misluk het. Elke universum is in twee verdeel – die leersteekproef, ongeveer 60%, en die toetssteekproef, ongeveer 40%. Die modelle is uit die leersteekproef afgelei en die toetssteekproef is gebruik as bevestiging van die resultate van die afgeleide model. Die totale klassifikasie-akkuraatheid van die drie beste modelle, een vir die groeifase, een vir die resessie-fase en een gemengde ekonomiemodel, is onderskeidelik 72,99%, 96,67% en 80,26% en dié vir die mislukte maatskappye 75,29%, 100% en 85,19%. Die totale voorspellingsakkuraatheid van die drie modelle is onderskeidelik 69,23%, 80,95% en 72,55% en dié van die mislukte maatskappye 73,68%, 86,67% en 83,33%. Al die modelle se akkuraatheid is meer as wat die akkuraatheid sou wees indien al die oorbedryfsjare bloot as misluk geklassifiseer sou wees. Uit die resultate van verskeie toetse blyk dit dat Ver3, die groei in verkope vanaf jaar 1 tot jaar 3, waarskynlik die belangrikste onafhanklike veranderlike in die onderskeid tussen mislukte en nie-mislukte oorbedryfsjare is. Dit ondersteun die teorie wat onderliggend is aan oorbedryf, wat aandui dat ’n hoë groei in verkope ’n maatskappy op risiko plaas vir kontantvloeiprobleme. Maatskappye waar die kontantvloeiprobleme vanweë ’n uitbreiding in bedryfskapitaal ontstaan, word deur die oorbedryfsratio onderskep. Die maatskappye waar die kontantvloeiprobleme eerder uit die vervanging van nie-bedryfsbates sal voortvloei, sal nie noodwendig deur die oorbedryfsratio ondervang word nie, aangesien die KVB wat in die oorbedryfsratio gebruik word, nie voorsiening maak vir vervangende investering nie. Dit is daarom nodig om KVB tot ’n vrye kontantvloei-KVB aan te pas. Waardevermindering word as ’n alternatief vir vervangende investering gebruik, aangesien vervangende investering nie ’n verpligte openbaarmakingsvereiste is nie. Waardevermindering is teoreties dié deel van die bate wat gedurende die jaar opgebruik is en wat vervang behoort te word. Deur dus die jaarlikse waardevermindering van KVB af te trek, is hierdie syfer meer verteenwoordigend van die maatskappy se kontantposisie nadat alle normale transaksies om die besigheid in stand te hou, in ag geneem is. Na die aanpassings vir vrye kontantvloei is weer ses modelle uit die verskillende tydperke en vir die verskillende ekonomiese fases ontwikkel. Al die modelle se akkuraatheid is beter as wat die akkuraatheid sou wees indien al die oorbedryfsjare bloot as misluk geklassifiseer sou wees. Ver3 en KVB3:TB (die kumulatiewe KVB vir die drie jaar tot die totale bates) blyk uit die toetse die belangrikste onafhanklike veranderlikes te wees in die onderskeid tussen misluk en nie-misluk wanneer vrye kontantvloei in ag geneem word. Dit is insiggewend aangesien KVB3:TB ’n fiktiewe syfer verteenwoordig, sou die maatskappy ’n bedrag wat gelyk is aan waardevermindering, aan vervangende investering bestee het.

Diss. Uppsala : Uppsala universitet, 2006.

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2015. / The necessary skills and knowledge on how to open and manage a business can be mastered but the uncertainties during decision-making, as well as the risks, obstacles and barriers present in the business environment can change established ways of conducting a business. However, identifying the causes of such uncertainties, risks and obstacles is essential as it may reduce the probability of failure in the future, and supports effective policy-making. The purpose of this thesis was to examine the factors contributing to the failure of small enterprises in the Luanda province in Angola, with three specific objectives: to assess the critical management and financial factors; to examine the effect of market competition; and to assess the factors in the economic conditions associated with the causes of small business failures. Recommendations made to government could mitigate the high number of business failures. Similar studies were conducted in countries other than Angola. As alarmingly high rates of business failure exist in Angola, this study sought to examine the factors associated with such failures. This research was conducted under a positivism theoretical perspective and a quantitative research method was adopted. A questionnaire was the primary data collection instrument and the snowball sampling technique was employed. Questionnaires were distributed to 130 small business owners and managers who had experienced business failures and 108 questionnaires were collected. Statistical Package for the Social Sciences (SPSS) software was used to analyse the quantitative data which was collected. Results were statistically descriptive in nature and presented in tables, pie charts, and bar charts. The results indicated that critical factors which influenced the failure of small enterprises in Angola were: small business owners and managers lacked knowledge of business systems; small business owners and managers lacked financial accounting skills; and negligence by small business owners and managers in planning and controlling business resources. This indicates that institutions do not actively promote entrepreneurship knowledge and skills development and there is an absence of successful entrepreneur role models and business mentors or coaches for entrepreneurial capacity-building. Among others factors influencing business failure in Viana, this study identified a lack of economic support and availability of fundamental business resources such as raw material, skilled people and finance, rigid policy-making regulations, and a high level of corruption and theft in the country, to the extent that the small business may lack money and is unable to continue operations.The study recommends that since most small businesses operate on a basis of sole decision-making, it is important that the entrepreneur/manager should make a concerted effort to acquire the necessary knowledge and skills in management and finance systems, primarily to start a business or as needed, so that risk and probability of failure can be reduced. Policy-making should consider support structures for entrepreneurial capacity building, increase the production of primary products and raw material, provide entrepreneurial training and skills development (higher education), and develop mechanisms to allow easy access to information, reduce trading restrictions and reduce crime.