Entrepreneur’s Nightmare – Corporate Failure: Consequences and Probable Solutions

T Oghoghomeh, Odita Anthony


The main objective of this study is to determine the causes, effects and problems that lead to frequent corporate failure in Nigeria and to proffer possible solutions. In effecting this  work, we used questionnaires administered to prospective investors, owners of selected firms in Delta State and a cross section  of customers drawn randomly, interviews with some  key management staff of the selected firms, as well as related published and unpublished data of the firms. We analyzed the data and information obtained using regression and correlation analyses through SPSS statistical software. It was observed that some of the problem militating against production firms that leads to their failure in Nigeria could have been averted through capital restructuring and proper financial portfolio. In view of the findings and outcome of the tested hypotheses we advance as one of the recommendations that Monetary authorities and National Economic Reconstruction Fund (NERFUND) could give lighter conditionality and, fund assistance as well as eligibility for firms enlistment into the Nigeria Stock Market (going public), this would enable entrepreneurs evolve effective growth policies, as well as fund mobilization that would gear up their capital base and help avert possible causes of failure.

Keywords:Corporate failure, Capital base, Capital restructuring, Corporate growth

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ISSN (Paper)2222-1697 ISSN (Online)2222-2847

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