Small Business Failure and Survey of the Literature

Abstract

Joyce Berryman is acting head of the Department of Commerce of the James Cook University of North Queensland, Australia. The failure of small businesses has serious implications for employment in many countries and much is said and written about small business failure and bankruptcy. Authors and speakers are usually interested therefore in suggesting means of avoiding such disasters. They are bad for the economy because they mean last jobs and a drop in the gross national product as well as promoting a lack of confidence in the small business sector; for the small businessman they may be degrading and disappointing in addition to the personal hardship involved. This survey of the literature on bankruptcy and failure has been undertaken to bring together what has been said so far.