The Dynamics Behind Small Business Failures in Juba City in the Republic of South Sudan: An Empirical Investigation

Isaac Ayii Ayii and Maxwell Adea
Additional contact information
Isaac Ayii Ayii: University of Juba, South Sudan.
Maxwell Adea: Deputy Principal of the Graduate College of the University of Juba, South Sudan.

International Journal of Science and Business, 2025, vol. 47, issue 1, 44-60

Abstract: Small businesses are vital contributors to Gross Domestic Product and job creation, serving as the backbone of the economy in the Republic of South Sudan. Despite their importance, approximately 45% of small and medium enterprises (SMEs) in South Sudan fail within their first five years. This study explores the key factors driving the high failure rate of small businesses in Juba City, the country’s commercial and capital hub. Using a qualitative research design, data were collected through key informant interviews (KIIs) and focus group discussions (FGDs) across three administrative blocks of Juba City. The findings identified several critical challenges: an unstable economic environment coupled with inflation, high operational costs, poor financial management and lack of business skills, insecurity and theft, unpredictable government regulations and harassment, limited access to capital and credit, inadequate infrastructure, market saturation with copycat competition, and lack of proper storage facilities leading to post-harvest losses. To address these challenges, the study recommends strengthening the enabling environment through macroeconomic stability and regulatory reforms; investing in strategic infrastructure to improve market access and operational efficiency; institutionalizing entrepreneurial training and financial literacy programs; expanding access to inclusive and performance-based microcredit and financial services; fostering a national innovation and business development ecosystem; promoting affordable digital transformation and media-based marketing; and reinforcing informal financial networks and cooperative structures.

Keywords: Small Business Failure; SMEs; Juba City; South Sudan; Entrepreneurial Challenges; Economic Environment (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ijsab.com/wp-content/uploads/2604.pdf (application/pdf)
https://www.ijsab.com/volume-47-issue-1/8098 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aif:journl:v:47:y:2025:i:1:p:44-60

DOI: 10.58970/IJSB.2604

Access Statistics for this article

International Journal of Science and Business is currently edited by Dr. Md Shamim Hossain

More articles in International Journal of Science and Business from IJSAB International
Bibliographic data for series maintained by Farjana Rahman ().