The Failure Syndrome

Abstract

Using the financial records of over 350 small businesses the authors attempt to identify symptoms that will forecast the failure of small businesses. These symptoms are grouped into three categories: (1) personal characteristics, (2) managerial deficiencies, and (3) financial shortcomings. The casual characteristics and incidence of the symptoms within each category are then analyzed. People possessing these symptoms are inflicted with what the authors call the “Failure Syndrome.”