Exploring The Causes of Business Decline in Malaysia: An In-Depth Analysis of Contributing Factors

Abstract

Business failure is a complex phenomenon due to various internal and external factors. Understanding the causes of business failure is crucial for business owners and policymakers as it can help formulate strategies to minimise the risk of failure. This study aims to examine the factors that contribute to the decline of Malaysian businesses using a comprehensive analytical approach. The study sample comprises companies in Malaysia, including both small and large companies from various industries. Probability sampling was used to select the samples for the study. The research design consists of a review of relevant literature followed by a quantitative survey of Malaysian firms affected by the failure of their business. Data collection included surveys, interviews, and secondary data sources such as financial statements and industry reports. The study used various statistical techniques to analyse the data, including descriptive statistics, correlation analysis and regression analysis. The results show that the main factors for the decline are poor financial management and policies, top management problems and weak acquisition, competition, incompetent management, and global upheaval. The findings of this study have important implications for policymakers, business owners and stakeholders. Business owners, stakeholders and policymakers can use this information to formulate strategies that minimise the risk of failure and promote sustainable business growth.