Article About Business:Bankruptcies of coffee shops in Hargeisa, Somaliland

Business man holding Bankruptcy on blurred abstract background

Date: 10. 10. 2021

Day: Sunday

Somalilandsun:Employees are very important resource for the continuity of and development of every company. If you have poorly qualified staff your business will be on the Verge of bankruptcy. Let discuss why coffee shops always demolishes or bankruptcy happies:

  1. Lack of experience

Most of the owner don’t have enough experience to start a new coffee shop. This makes to fail a lot of important issues: such as motivation of employees and supply systems. For instance, diaspora person comes to Hargeisa soon s/he never things about other same business located in Hargeisa. When they start their business there a big challenge which always faces for them and it is the employees. In the other countries people are on time and working very hard even if they get small amount of money but in Hargeisa same issue will not happen. On the other side, diaspora people always scold employee to work same as the employees in the abroad. So, they use a dictatorship management system which paves the way for failure of the owner. Moreover, I haven’t seen any academic research which was made before the business was started.

  1. Taste changes:

Every business at the starting you will find good tea and snack which are very sweet but after a few days or months passes the taste changes. So, it will cause the customers to alter their idea about been in that cafeteria. Day after day, the customers are decreasing. At the last the coffee shop will bankruptcy.

  1. Lack of employee motivation:

Employees don’t get enough motivation for the job because, they work long hours and the managers always scold them. Moreover, they don’t get enough salary which makes them dissmorale. However, the salary should deserve for the job employees are doing.

  1. Lack of financial plan and research:

Everybody who is implementing for his/her business idea never things about for financial plan because, when they are starting, they are very happy at the latter time the result which is coming shows failures for profit earning so, makes to increase the price of snacks, tea and coffee. Moreover, lack of research exists in the whole country since it is very important to know any problems which can face for you, for instance, the running cost always brings about a lot of problems.

Zakaria Mahmoud Mouse

MBA Candidate



AZAD Languages and Research Training Center