Enhancing Business Success Prediction: A Data-Driven Machine Learning Mode

Business failure yields considerable economic and social repercussions, affecting employees, investors, and communities. Conventendeavorslure prediction models predominantly depend on financial measurements, restricting their relevance across many businesses and overlooking essential non-financial elements. This study presents a machine learning model for predicting company failure, utilizing logistic regression, random forest, and neural networks. The model incorporates both financial and non-financial characteristics, solving research deficiencies concerning cooperative societies, governance, market rivalry, and external economic factors. Data preprocessing methods, including outlier detection, feature selection, and dimensionality reduction, improve model accuracy. The suggested methodology attains an accuracy over 94%, offering an early warning system for enterprises at risk of collapse. This study enhances financial risk evaluation by providing a flexible, sector-specific forecasting model. The methodology facilitates proactive decision-making, assisting organizations in risk mitigation, sustainability enhancement, and financial crisis prevention. Future endeavors involve augmenting datasets and investigating deep learning methodologies to improve predictive accuracy.

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Publication Details

Journal
EPJ Web of Conferences
Published
2025-01-01
DOI
https://doi.org/10.1051/epjconf/202532801022
Primary Topic
Financial Distress and Bankruptcy Prediction
Type
article
Field-Weighted Citation Impact
0.00
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article

Enhancing Business Success Prediction: A Data-Driven Machine Learning Mode

Anant Tiwari, Manish Korde, Arpit Deo, Akash Choudhary et al.
EPJ Web of Conferences
Financial Distress and Bankruptcy Prediction
article

Enhancing Business Success Prediction: A Data-Driven Machine Learning Mode

Anant Tiwari, Manish Korde, Arpit Deo, Akash Choudhary, Anant Jain
article en

Abstract

Business failure yields considerable economic and social repercussions, affecting employees, investors, and communities. Conventendeavorslure prediction models predominantly depend on financial measurements, restricting their relevance across many businesses and overlooking essential non-financial elements. This study presents a machine learning model for predicting company failure, utilizing logistic regression, random forest, and neural networks. The model incorporates both financial and non-financial characteristics, solving research deficiencies concerning cooperative societies, governance, market rivalry, and external economic factors. Data preprocessing methods, including outlier detection, feature selection, and dimensionality reduction, improve model accuracy. The suggested methodology attains an accuracy over 94%, offering an early warning system for enterprises at risk of collapse. This study enhances financial risk evaluation by providing a flexible, sector-specific forecasting model. The methodology facilitates proactive decision-making, assisting organizations in risk mitigation, sustainability enhancement, and financial crisis prevention. Future endeavors involve augmenting datasets and investigating deep learning methodologies to improve predictive accuracy.

EPJ Web of ConferencesVol. 328
Medi-Caps University (IN)
Openalex Percentile: Top 80%
Financial Distress and Bankruptcy Prediction
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Enhancing Business Success Prediction: A Data-Driven Machine Learning Mode — Anant Tiwari, Manish Korde, et al. · EPJ Web of Conferences (2025) | TGRS Research Map | TGRS