An Exploration of Community Business Failure

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Abstract
Community businesses are enterprises which are owned and controlled by local residents and which aim to create jobs for local and unemployed people. Although they received generous support from both local and central government during the 1980s, growing concern is being expressed about their performance and contribution. This paper deals with a failed community business which, for a short period, appeared to be a successful example of what could be achieved in a disadvantaged community. The study highlights problems which can emerge where inexperienced volunteers are responsible for overseeing an increasingly complex commercial organisation with a weak management structure. It underlines the need for support agencies to ensure that up to date financial records are kept, for business growth to be tied to organisational capacity, and for local people to have access to specialist training and external support.

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