Business Success Versus Failure Prediction Model for SMEs in Libya
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Factors of Failure or Success of SMEs., Libya., SMEs., Model.
Abstract
There is a clear contrast in the studies on the variables that actually lead to the success or failure of small businesses, that is, there is no theory so far that can be said to be applicable and generalized; Lussier (1995) has developed a model contains 15 variable to predict the success of the first SME failure, with its accuracy which already tested and validated in different parts of the world (America, Chile, Croatia, and Israel). This study contributes to determining the validity of this model in Libya by reviewing some studies on small and medium enterprises and counting the reasons studied in the Libyan environment which included in this model. Results related to the mentioned reasons indicates that the determinants of success and failure of small and medium enterprises in Libya is not very different from other countries, and future studies are recommended to use this model empirically in Libyan environment.
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