IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 11 2024
DOI: 10.56201/ijebm.v10.no11.2024.pg221.238

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Business Revival Mechanism and Survival of Sick Units. (A Thematic Analysis of Causes and Cure Of Sick Business in the South Eastern Nigeria)

Nwabuatu, Emmanuel Nnajiubah. Ph. D

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Abstract

This study examines the causes of business sickness and mechanisms for revival in Southeastern Nigeria, focusing on micro, small, and medium enterprises (MSMEs). Employing an exploratory research design, it utilizes secondary data sourced from peer-reviewed journals, textbooks, industry reports, and credible internet publications. Content analysis was employed to identify recurring themes and patterns contributing to business failure and revival strategies. The findings reveal that financial mismanagement, poor planning, ineffective leadership, economic instability, and contextual factors such as poor infrastructure and excessive taxation are the primary causes of business sickness. Financial mismanagement manifests through poor record-keeping and cash flow challenges, while ineffective leadership is marked by poor strategic vision and resistance to change. Economic instability, driven by volatile market conditions and inconsistent policies, further complicates the business environment. The study identifies successful revival mechanisms, including restructuring, innovation, strategic partnerships, and government support. Restructuring through operational audits, lean resource management, and efficiency improvements has been effective. Innovation, particularly in adopting technology and responding to market demands, has driven revival, while partnerships and government initiatives such as grants and training programs have played vital roles. However, the study highlights challenges to implementing these mechanisms, including financial constraints, bureaucratic inefficiencies, and cultural resistance to change. Financial barriers, high interest rates, and limited access to credit impede recovery, while bureaucratic red tape stifles innovation and strategic adjustments. This research contributes to the literature by offering localized insights into the dynamics of business sickness and revival in Southeastern Nigeria. It emphasi

keywords:

Business Revival, Sick Units, Causes of Business Failure, Business Survival Strategies,

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