Understanding entrepreneurial failure of newly created firms in the Moroccan context: a multidimensional and exploratory analysis

Abstract

The crucial role played by entrepreneurship in the socio-economic development of countries, and the high failure rates of newly-created businesses, which have a negative impact on wealth creation and national social indicators, testify to the relevance of increasing research into entrepreneurial failure. Nevertheless, interest in the subject on the national and international academic scene is relatively recent, at a time when efforts are much more focused on demonstrating models of success.  For this reason, this article is intended as a contribution to highlighting the specific features of this phenomenon in the Moroccan context. So, without seeking to identify causal links, the aim of this article is rather to raise variables in relation to which we could act to improve the survival conditions of newly-created businesses. For this reason, we have taken a holistic approach to our research. Since our main aim is to explore our context, we have chosen the multiple-case method as our methodological approach. Our findings point to twenty factors likely to explain failure, stemming from three levels: the external environment, the company and the entrepreneur. These constitute a guide around which corrective strategies aimed at longevity can be developed.

Keywords: entrepreneurial failure – new founded firms – liability of newness- liability of smallness

JEL Classification: M31

Paper Type: Empirical Research