Article-Mr.Bandara - The Chartered Accountant 2nd Issue Volume 46 Chamara Bandara SCB Corporate Chartered Accountants Corporate Doctors(Pvt Ltd

Article-Mr.Bandara - The Chartered Accountant 2nd Issue...

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The Journal of The Institute of Chartered Accountants of Sri Lanka 21 The Chartered Accountant 2nd Issue, Volume 46 FEATURES Chamara Bandara, ±²³´µ¶·¸´¹º»³¼´¶½µ¾¹´¿¶ SCB Corporate ( Chartered Accountants) / Corporate Doctors (Pvt) Ltd ( Corporate Consultants) Chamara Bandara is a corporate consultant and the CEO of Corporate ±²³´²µ¶·¸¹º´»·¼´½¾·¿À· is a fellow member of the Institute of Chartered Accountants of Sri Lanka, MBA, University of Southern Queensland. Currently he is a doctorial student of Management and Science University, Malaysia. Abstract This article examines, based on Á´ÀµÃ´ÄµÀ·µÀºÂÀÅÆ·´ÇÀ·¶ÈÀ³Âɳ·µÀö²Ê¶· which cause business failure among the SMEs. It explores the fundamental question on why some businesses succeed while others fail in a similar economic condition. First, the article discusses the role of SMEs in Sri Lanka and then it moves on to discuss the reasons why entrepreneurs start businesses. It recognises that the need for achievement and social intimacy as the prime motives to start a business. Finally, the results show that businesses fail due to many reasons. Some reasons are fundamental; some are unique to the business. This article, hence recognize integrity, and business policies (policies as disciplines) as the fundamental causes of business failure. Introduction Business crisis is a painful circumstance that affects everyone, directly or indirectly. Many SMEs fail in early stage of their life cycle. In Australia, 7.5% of businesses in SME sector fail (Bickerdyke, I., Lattomore, R., & Madge, A. 2000). Similarly, in the UK, between 350,000 and 400,000 closures are recorded ÃÊÊÄÃÁÁË·µÀȵÀ¶ÀÊ´ÂÊÌ·ÍÎÏ·²Ð·´ÇÀµ·ÑĶÂÊÀ¶¶·²ÈÀµÃ´Â²Ê¶·¸¹µÃ´´ÀÊÆ· ÒÎÎÓ»¾··ÔÊ·ÕÃÊýÃÆ·ÃÁÖ²¶´·ÇÃÁз²Ð·´ÇÀ·ÉµÖ¶·ÑÀ³²ÖÀ·ÑÃÊ×µÄÈ´·Ê²´· ÑÀ³ÃĶÀ·²Ð·ÀزÌÀʲĶ·Ðó´²µ¶Æ·ÑÄ´·½ÄÀ·´²·ÂÊ´ÀµÊÃÁ·½ÀɳÂÀʳÂÀ¶· ¸ÙÃÁ½ÅÂÊƷھƷ۵ÃËƷܾÆÚ²Çʶ²ÊƷھƷ¹µ²³´²µÆھƷÝÃÉÞÄßßÃÖÃÊÆà¾Æá· Sabourin, D. 1997). However, we do not have accurate information to measure the rate of business failure in Sri Lanka; ´·³²ÄÁ½·ÑÀ·Ã·¶ÂÌÊÂɳÃÊ´·ÈÀµ³ÀÊ´ÃÌÀ¾·ÔÊ·âµÂ·¼ÃÊ×ÃÆ··½ÄµÂÊÌ·ÚÃÊÄõ˷ ´²· ãÄÌĶ´· ÒÎÍÒÆ· ÓäÓå· ÊÀÅ· ɵֶ· ÇúÀ· ÑÀÀÊ· µÀ̶´ÀµÀ½· ö· limited liability companies (Sunday Times, 2012). This number is in addition to sole proprietors and partnerships. However, Sri Lanka has not felt the crisis of business failure due to the lack of ½ÂµÀ³´·×ʲÅÁÀ½ÌÀ·²Ê·ÐÃÂÁÀ½·³²ÖÈÃÊÂÀ¶¾·æÀºÀµ´ÇÀÁÀ¶¶Æ·´ÇÀ·µÀ³ÀÊ´· Golden Key company crash has urged Sri Lankans, to consider the seriousness of business failure. Although the exact quantum
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