BAD management is the biggest factor behind most business failures in the North West.

Recessions and the economy are often cited as the reasons behind collapses.

However, most directors believe ineffective management and lack of financial backing as the major causes.

"Companies need to have an effective management team in place that is prepared to provide leadership and ensure that products or services are relevant to markets that are increasingly subject to rapid structural change," said Peter Terry, head of corporate recovery in the North West for KPMG which carried out the survey.

Other factors cited by directors for features include decline of industry, bad debts or collapse of major customers.

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