Underlying Causes of Business Failure of Floriculture Investment in Ethiopia


Floriculture is the newest of Ethiopia’s export industries, having grown very rapidly over the past years to become the country’s fourth largest export industry. The Ethiopian floriculture industry began in the 1980s when state-owned farms started exporting cut flowers to Europe. An investors and managers which dealing with several problems resulting in failures of this investment; this study was carried out to identify and understand the underlying causes of floriculture investment failure. The main instrument of the study was interview and questionnaire which is supported with secondary source of data. It is concluded that the main cause for failure of floriculture investment in Ethiopia is poor management i.e. poor business planning, poor marketing management, poor financial management and poor human resource management followed by economic related and other causes like disaster, change, land fertility, joint ventures relationship lack of quality packing industries, lack of efficient cargo freight and high transportation cost. Considerable suggestion and recommendation was given to overcome the failure causes floriculture investment in Ethiopia.