Small Business Success or Failure Prediction: A Comparative Study in Ghana and Israel

Abstract

This paper tests the Lussier success versus failure prediction model in Ghana, an emerging country and Israel, a developed country. The logit results of Israel (N = 205; p = 0.000) and Ghana (N = 208; p = 0.000) support the model validity to predict the success or failure of a group of businesses. The accuracy rate of predicting a specific business as successful or failure was greater than 85 percent in both countries, with high R square. Testing the t-values of the individual variables in each country revealed some differences between the two countries; results and implications are presented. LITERATURE REVIEW Development and Selection of the Prediction Model The development of success or failure prediction models was started with univariate models pioneered by Beaver (1966), and other quantitative prediction models have been developed (Altman,

The Mediating Impact of SMEDAN Initiative on the Relationship Between CSFs and SMEs' Success: A Conceptual Paper

“…[9] West Bank, Palestine. Results: Capital, record-keeping, planning, and professional advice "Success versus failure prediction model for small businesses in Ghana" [26]. Ghana.…”

The Mediating Impact of the Small and Medium Enterprises Development Agency of Nigeria on the Relationship Between the Critical Success Factors and SMEs' Success

“…Because the study focuses on SMEs ' success and failure, there is a need to understand each concept's meaning. According to the literature reviewed on small-medium businesses, there is no universally accepted definition of a small-medium enterprise (Torres et al, 2019), as definitions vary in different countries (Gyimah et al, 2020)-about fifty definitions of small businesses developed in over seventy-five countries (Majama & Magang, 2017). SMEDAN defines SME success as a "firm that makes profit operating for five or more years."…”

“…Earlier SMEs' success vs. failure prediction models include Reynolds andMiller (1987, 1989) and Cooper et al (1990Cooper et al ( , 1991. The most recent model that predicts the success vs. failure of SMEs correctly is that by Lussier (1995) (Baidoun et al, 2018;Gyimah et al, 2020;Halabi & Lussier, 2014;Hyder & Lussier, 2016;Lussier & Corman, 1996: Lussier & Halabi, 2010Lussier & Halabi, 2008;Lussier & Pfeifer, 2001;Marom & Lussier, 2014;Sadatrasoul et al, 2020;Teng et al, 2011). Other successes vs. failure models include Naheed et al (2019), examining the factors influencing SMEs' success vs.…”

Behavioural Finance and Investment Decisions: Does Behavioral Bias Matter?

“…Data were gathered from the primary source through the use of a questionnaire because previous studies used primary data to answer the research questions (Bakar & Yi, 2016;Chin, 2012;Prosad et al, 2015;Subash, 2012). The use of surveys is convenient and avoids researcher bias (Bell & Bryman, 2007;Gyimah & Boachie, 2018;Gyimah et al, 2019Gyimah et al, , 2020. The questionnaire used for the study is adapted and modified from Chin (2012) and Prosad et al (2015).…”