and the sources of financing, high operating expenses, week finance management, inadequate management of inventory, no costing system and poor bookkeeping practices are the Accounting and Finance related factors identified as the main causes of business failure for SMEs in Gedeo Zone, Dilla City. Management and Marketing related factors such as lack of adequate and appropriate market research, lack of management skills and experience, decisions based upon inaccurate or incorrect financial information, poor marketing practices and poor business planning are the main causes of business failure in SMEs in Gedeo Zone, Dilla city. The remnant Management and marketing related factors such as of lack respecting delivery promises, loss of leadership creditability and poor response to change are found to be moderately considered as a cause for business failure. Poor location/accessibility of the business and excessive reliance on few suppliers with an average score of 3.76 and 3.50 respectively were found to be the major cause for business failure in Dilla city. From the finding of the study, business failure is found to have an adverse effect up on the business and stakeholders including employees, customers, suppliers, financial and the business in Gedeo Zone, Dilla city. institutions, entrepreneur’s family Conclusion Impeding bad debt ,an extreme reliance on loan finance ,poor case flow management and with no cash flow plans ,lack of credit ,unbalanced mix of risk capital and loan capital ,lack of control over cash, lack of capital ,inconsistency between the liquidity of assets and the sources of financing, high operating expenses, week finance management, inadequate management of inventory, no costing system and poor bookkeeping practices and Management and Marketing
and the sources of financing, high operating expenses, week finance management, inadequate management of inventory, no costing system and poor bookkeeping practices are the Accounting and Finance related factors identified as the main causes of business failure for SMEs in Gedeo Zone, Dilla City. Management and Marketing related factors such as lack of adequate and appropriate market research, lack of management skills and experience, decisions based upon inaccurate or incorrect financial information, poor marketing practices and poor business planning are the main causes of business failure in SMEs in Gedeo Zone, Dilla city. The remnant Management and marketing related factors such as of lack respecting delivery promises, loss of leadership creditability and poor response to change are found to be moderately considered as a cause for business failure. Poor location/accessibility of the business and excessive reliance on few suppliers with an average score of 3.76 and 3.50 respectively were found to be the major cause for business failure in Dilla city. From the finding of the study, business failure is found to have an adverse effect up on the business and stakeholders including employees, customers, suppliers, financial institutions, entrepreneur’s family and the business in Gedeo Zone, Dilla city. Conclusion Impeding bad debt ,an extreme reliance on loan finance ,poor case flow management and with no cash flow plans ,lack of credit ,unbalanced mix of risk capital and loan capital ,lack of control over cash, lack of capital ,inconsistency between the liquidity of assets and the sources of financing, high operating expenses, week finance management, inadequate management of inventory, no costing system and poor bookkeeping practices and Management and Marketing