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The Reasons for SMEs Failure Comparative

Ivan Mihajlović, Nenad Nikolić

2026enSMEsbusiness failurerisk factorsentrepreneurshipsurvey researchstatistical analysis

Abstract

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This manuscript presents the preliminary results of research on the factors influencing the failure of SMEs. It serves as a foundational base for a larger study aimed at analyzing the critical factors that lead to the closure of SMEs across different regions in Europe. From a comprehensive literature review, basic factors were identified, which were categorized as individual characteristics of the entrepreneur or non-individual characteristics of the SMEs, and used to define a measuring scale for assessing the significant contributors to SME failure. A pilot test was conducted with real entrepreneurs in Serbia who experienced business failures, utilizing an initial questionnaire form based on the developed measurement scale. The objective of this research is to create a robust tool for predicting potential failures of existing SMEs, built upon insights derived from past instances of SME closures. This tool aims to enhance the entrepreneurial landscape in Europe by providing critical information that could reduce the risk of failure and improve the chances of success for future businesses.

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Cite This Work

@article{e70abcbf-c61a-411c-ba2a-03cd66107fde,
  title={The Reasons for SMEs Failure Comparative},
  author={Ivan Mihajlović and Nenad Nikolić},
  year={2026},
  language={en}
}
TY  - JOUR
TI  - The Reasons for SMEs Failure Comparative
AU  - Ivan Mihajlović
AU  - Nenad Nikolić
PY  - 2026
LA  - en
ER  -

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