1) the size and structure of the needs of the population;
2) the level of income and savings of the population, and, consequently, its purchasing ability (this also can be the price level and the possibility of getting consumer credit that has a significant impact on entrepreneurial activity);
3) political stability and direction of internal policy;
4) the development of science and technology, which determines all the components of the production process of the product and its competitiveness;
5) the level of culture, which manifests itself in habits and norms of consumption, preferences of some products and negative attitude towards others;
6) to the external factors of bankruptcy should include international competition. Foreign firms in some cases at the expense of cheap labour, and others of more advanced technologies;
7) the inflation rate;
8) state policy in the field of Finance, credit and taxes.
Internal factors:
1) Deficit in working capital as a result of inefficient production and commercial activities or inefficient investment policies.
2) Low level of equipment, technology and organization of production.
3) decrease of the efficiency of utilization of production resources of the enterprise, its production capacity and as a result a high level of cost, loss "eating away" of capital.
4) Create excess balances of construction in progress, WIP inventory, finished goods, in connection with which there is a glut, slowing down the turnover of capital and formed its deficit. This causes the company to fall into debt and may be the cause of its bankruptcy.
5) the Clientele of the enterprise, which is paying late or not paying at all due to bankruptcy, forcing the company to go into debt. Thus begins a chain bankruptcy.
6) Lack of sales due to the low level of organization of marketing activity for the study of markets, formation of portfolio of orders, improve the quality and competitiveness of products, development of pricing policies.
7) borrowing of funds in the company on unfavorable terms, which leads to an increase in financial costs reduced profitability of economic activity and ability to self-financing.
8) Rapid and uncontrolled expansion of economic activities, resulting in inventory costs and accounts receivable grow faster than sales. Hence there is a need to attract short-term borrowings, which may exceed net current assets (net working capital). As a result, the company falls under the control of the banks and other creditors and may face the threat of bankruptcy.