The Impact of Managerial and Administrative Efficiency Dimensions on Financial Failure in Micro-Enterprises A Field Study in the Wilaya of Ghardaïa

Abstract

This study examines how administrative and managerial efficiency relates to financial failure in Algerian micro-enterprises, by tracing the relationship between the four dimensions of this efficiency — planning, organizing, financial control, and decision-making — and the level of exposure to financial failure. Methodologically, the study draws on the descriptive-analytical approach, using a questionnaire administered to a sample of 120 micro-enterprises operating in the Wilaya of Ghardaïa. Data were processed through SPSS software using descriptive statistics, Pearson correlation coefficient, and multiple linear regression analysis. The empirical evidence brought to light a statistically significant inverse association between managerial efficiency and the level of financial failure, with the combined dimensions accounting for 64.3% of the variation observed in the latter. Strategic planning and financial control emerged as the most influential dimensions. Accordingly, the study calls for intensifying targeted training programs for owners of micro-enterprises and broadening the reliance on early-warning mechanisms of financial failure, in a way that secures the sustainability of such enterprises