A Success versus Failure Prediction Model for Small Firms

Kaviraj Bangarigadu, Robin Nunkoo*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


Understanding the reasons behind the success and failure of SMEs is an important research endeavor. This study develops a success versus prediction model for small and medium enterprises (SMEs). Data were collected from SMEs in Mauritius. Both models were found to be valid and reliable and had good prediction accuracies. The full model, however, was found to have a slight advantage over the reduced model. Capital, financial record keeping and control, management experience, business planning and use of professional advisors were significant predictors SMEs’ success. The theoretical implications of the findings are discussed. The study also provides practical implications for stakeholders.
Original languageEnglish
JournalJournal of African Business
Issue number4
Pages (from-to)529-545
Number of pages17
Publication statusPublished - 2023

Bibliographical note

Published online: 05 Sep 2022.


  • Small businesses
  • Success
  • Failure
  • Prediction model
  • Lussier model
  • Wholesale/retail trade
  • Mauritius

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