Problem statement
The United States is home to an estimated 31.7 million small businesses, who provide critical
employment, accounting for 47.1% of the total U.S. employee workforce. Their struggles
during the COVID-19 pandemic present a formidable challenge to the nation’s economic
recovery. The sudden shuttering of businesses, combined with reduced consumer spending
and financial instability have forced many small businesses to the brink.
Small business failure is a significant economic issue in both developed and developing
economies. In Mogadishu, a large percentage of businesses are family-operated and face
numerous challenges such as limited access to finance, land, expensive electricity,
transportation problems, and high tax rates (Ministry of Planning and National Development,
2017). The World Bank (2018) also identifies obstacles like customs and trade regulations,
water scarcity, lack of an educated workforce, and unregistered practices.
Inadequate management skills and government policies are also cited as major obstacles for
small and medium-sized enterprises in Somalia (Ahmed, 2020). Similar challenges are faced
by small businesses in Burao city, as the business environment in the country is relatively
homogeneous.
These various studies shed light on the specific factors that contribute to small business
failures in the Somali region, including limited access to finance, high taxation, lack of
security, inadequate public services, and poor management skills. Understanding these
challenges is essential for policymakers and entrepreneurs to develop strategies that address
these issues and promote the success of small businesses in the region.
We research effect of small business growth in Mogadishu somalia