Entrepreneurship in Lebanon: A Model for Successes and Failures

Entrepreneurs face different types of difficulties and operate in an unstable environment characterized by regional political ciaos and local financial, legal, infrastructural, educational and cultural impediments. Small and medium sized enterprises (SMEs) are the heart of any country; they empower its economy, heighten its competitive position and alleviate its employment problems and in general constitute the majority of companies. Understanding the causes of failure of small and medium sized enterprises is a prerequisite for the formulation of public policy and public and private program assistance. The purpose of this research is to find a statistical model for small business failures and successes in Lebanon and to verify whether failures are caused more by internal or external factors. Models of highly developed countries to Least Developed ones were used for generating the model and this country-specific model was realized through surveys that were filled by individuals with a relevant experience in the industry or with an equivalent high degree of education. Analysis was done using ranking, hypothesis testing, and ANOVA statistical analysis; the results showed that failures are mainly due to internal controllable factors. Finally, the research concludes with the results of the analysis and the possible remedies, recommendations and future enhancements