EXPLORING THE DETERMINANTS OF BUSINESS FAILURE IN MOROCCO

Introduction: The research on business failures has all come to the same conclusion: failing businesses are characterized by unstable financial situations. They consider that any cause leading to default can be embodied in the accounting statements and that examination of these statements is sufficient to exhaust all the factors leading to the default. Thus, the analysis of accounting and financial information makes it possible to assess the evolution of the activity of the company by analyzing the determinants that explain the phenomenon of failure in the financial, organizational, economic and managerial aspects. Objective: This paper aims to identify the characteristics and particularities of the business failure process in the Moroccan context. Theoretical Framework: Business failure, often manifested by insolvency, liquidation, or restructuring, results from a complex set of internal, external, and sometimes accidental factors. Analyzing the causes of this failure requires the use of several theoretical frameworks drawn from the literature on economics, management, and corporate finance. Method: This research adopts a qualitative approach based on a literature review to analyze the main determinants of business failure. The objective is to construct a structured conceptual framework based on existing theoretical and empirical contributions, while identifying trends, convergences and divergences in the results of previous studies. Results and Discussion: The results obtained from the literature review made it possible to identify three main sets of factors explaining business failure: financial determinants, economic determinants and strategic, managerial and organizational determinants. Research Implications: The theoretical and practical implications of this research, based on a literature review, offer valuable perspectives for better understanding and preventing business failure: Clarify the typologies of failure factors, contribute to the consolidation of the conceptual framework, Stimulate future research. Originality/Value: The relevance and value of this research are demonstrated by its ability to offer a clear and operational conceptual framework, capable of informing both academic research and managerial and institutional practices. By identifying the priority levers to monitor to prevent failure, it can positively influence the decision-making of managers, consultants, and public policies, thus contributing to strengthening the resilience of businesses in an uncertain economic environment.