Assessing the Key Factors Influencing the Closure Of Micro- Businesses

Business closure, though complex to define, generally refers to the point at which a company ceases operations due to financial instability, managerial inefficiency, or external constraints. While extensive research has explored the causes of closure among larger enterprises, there remains a notable research gap concerning micro-businesses, particularly those operating in rural settings with limited resources and institutional support. This study aims to identify and analyze the key factors influencing the closure of micro-businesses in Townsite, Cabanglasan, Bukidnon. Specifically, it examines the effects of inappropriate location, lack of customer relations, lack of entrepreneurial skills, and poor business planning on the sustainability of micro-enterprises. Employing a quantitative research design, data were collected from 165 micro-business owners through a structured survey using a 4-point Likert scale. The data were analyzed using regression analysis to determine the extent to which each variable influences business closure. Results revealed that all four factors significantly contribute to micro-business closure (p < 0.05), with inappropriate location emerging as the most influential determinant. Businesses situated in remote or low-traffic areas experienced greater risks of failure. Additionally, a lack of customer relations and entrepreneurial skills further heightened closure risks, while poor business planning was also found to be a substantial contributor. The study provides practical implications for micro-business owners and policymakers. It underscores the importance of strategic location selection, enhanced entrepreneurial training, and customer engagement initiatives to improve business survival. Furthermore, collaboration among local stakeholders is essential to create a more sustainable and supportive business environment, ultimately reducing closure rates and promoting economic resilience in rural communities.