CHAPTER ONE

1.      INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The problems of small business failure is as old as the history of business itself a large  number if business which started with so much optimism and promise have failed.

          The problms that confront business in its own right could contribute a great threat to the survival of he business.  It is better to indicate here that the survival of business if any person managed economy to a great extent depends on sometimes sheer luck rather on managerial and technical capability as would have seen the case.

          Business failure if like sickness such as malaria it always do not come without symptoms.  The Main symptoms of immediate business collapse according to Ifedi (1986) are detoriating capital, decrease in sales, decline profit and high debt ratio.  Once these factors are noticed in business, the entrepreneur should know that he business is at its collapse.  A large number of  business have failure in Enugu state.  The problem of business  failure is now a great concern to managers, entrepreneur customers and workers, an each can play an important role in minimizing it.

          In order to minimize business failure, effects should be made to determine the cause of such failure and appropriate steps to reduce them to an acceptable proportion.  This is the concern of this study.