Isaac Ayii Ayii, Maxwell Adea

Abstract

Small businesses are vital contributors to Gross Domestic Product and job creation, serving as the backbone of the economy in the Republic of South Sudan. Despite their importance, approximately 45% of small and medium enterprises (SMEs) in South Sudan fail within their first five years. This study explores the key factors driving the high failure rate of small businesses in Juba City, the country’s commercial and capital hub. Using a qualitative research design, data were collected through key informant interviews (KIIs) and focus group discussions (FGDs) across three administrative blocks of Juba City. The findings identified several critical challenges: an unstable economic environment coupled with inflation, high operational costs, poor financial management and lack of business skills, insecurity and theft, unpredictable government regulations and harassment, limited access to capital and credit, inadequate infrastructure, market saturation with copycat competition, and lack of proper storage facilities leading to post-harvest losses. To address these challenges, the study recommends strengthening the enabling environment through macroeconomic stability and regulatory reforms; investing in strategic infrastructure to improve market access and operational efficiency; institutionalizing entrepreneurial training and financial literacy programs; expanding access to inclusive and performance based microcredit and financial services; fostering a national innovation and business development ecosystem; promoting affordable digital transformation and media-based marketing; and reinforcing informal financial networks and cooperative structures.

Keywords: Small Business Failure, SMEs, Juba City, South Sudan, Entrepreneurial Challenges, Economic Environment.

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