Business Failure and Corporate Sustainability: An Outline of Causes and Selected Strategies
DOI:
https://doi.org/10.65150/EP-jefrr/V2E6/2026-04Keywords:
Failure, Sustainability, Strategy, EnterpriseAbstract
While some companies disappear only a few years after their creation, others succeed in ensuring their long-term sustainability. Business failure is rarely caused by a single event; rather, it often results from an accumulation of internal shortcomings. Conversely, the sustainability or long-term survival of an organization is not a matter of chance but of a delicate balance between internal resilience and external adaptation. It generally depends on an entity’s ability to maintain its vitality while preserving its core identity. In short, unlike organizations destined to disappear, sustainable firms embrace uncertainty, promote continuous learning, and manage their capital prudently.
This is why, for more than seventy years, business failure has been one of the most extensively researched and debated topics in financial literature. The discussions surrounding it are particularly intense because the causes of corporate failure and the associated risks are numerous. These causes may vary according to the type of business, the country, and the historical period under consideration.
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