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This research work examines the causes of small scale business failure in Abia state. Survey experimental design is employed in this research work. In conducting the research, questionnaires were used. The sample size for the research consists of three (3) villages in Ugwunagbo Local Government Area. The data collected were tested statistically by the use of mean and simple percentage. The study revealed that lack of enough capital and insufficient income are the major factors that affect the small scale businesses at the Ugwunagbo local government area of Abia State and the solution to this is financial support from government/banks and siting a good location for business and the test of hypothesis revealed that the listed factors has significant effect on the failure of the small scale business at the Ugwunagbo local government area. The following recommendations such as; encouragement of financial institutions to extend loans at a less rate to small-scale business, sourcing of cheap and available raw material locally, consistency in government as it affects small-scale business, enhancement of the managerial skills of managers of small scale business, through seminars and workshops; small scale business owners should engage in business that are less competitive, were suggested.

iosr journal of business and management

Critical Analysis on the Causes of Small Scale Business Failure in Abia State and its Prospects (A Case Study of Ugwunagbo Local Government Area, Abia State)