Entrepreneurs face different types of difficulties and operate in an unstable environment characterised by regional political chaos 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, alleviate its employment problems and, in general, constitute the majority of companies. Understanding the causes of the failures of SMEs is a prerequisite for the formulation of public policy and public and private programme assistance. The purpose of this research is to find a statistical model for SME failures and successes in Lebanon and verify whether the failures are caused more by internal or external factors. Different models of countries at varying degrees of development were reviewed and used for generating the country-specific model developed here. The data for the model came from surveys that were filled out by individuals with relevant experiences in the industry or with an equivalent high degree of education. The analysis was done using ranking, hypothesis testing and Analysis of Variance (ANOVA); the results show that the 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.
Keywords: entrepreneurship, Lebanon, success factors, small and medium-sized enterprises, SMEs, SME failures