Accounting and Marketing—Key Small Business Problems

1983 ◽  
Vol 7 (4) ◽  
pp. 19-26 ◽  
Author(s):  
Henry Wichmann
Keyword(s):  
United States ◽  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
The United States ◽  
Business Administration ◽  
Small Business Administration ◽  
Business Failure ◽  
Business Managers

The Small Business Administration (SBA) estimates that small businesses represent 97 percent of all businesses in the United States [5, p. 1]. The SBA defines a small business as “one that is not dominate in its field.” While the ma and pa shops fall within this definition, much larger firms are considered small under SBA criteria. The owner-managers of these small firms face unique problems—success or failure is keyed to solving these problems. Each year in the United States, some 500,000 new businesses start and 400,000 businesses discontinue operations [1, p. 47]. These discontinuances are not all due to business failure (a bankrupt firm). Some small firms are merged with larger companies, while the spark of life leaves other small firms because the owner retires without a son or daughter to take over the reins of leadership. The purpose of this article is to aid small business managers by (1) reviewing the process of beginning a business, (2) identifying some of the attributes that characterize a successful or unsuccessful small business, and (3) discussing small firms’ problems common to the frontier states of Alaska and Wyoming.

Exit Failure and Success

2016 ◽  
Author(s):  
Jaydeep Pancholi Norin Arshed
Keyword(s):  
United States ◽  
Small Business ◽  
The United States ◽  
Business Administration ◽  
Small Business Administration ◽  
Business Failure ◽  
First Year ◽  
The Uk ◽  
Insight Into ◽  
The U.S

It may seem odd to learn about business exit and failure in a book about entrepreneurship and starting and growing successful businesses. However, it has been reported by the U.S. Small Business Administration that approximately 10% of all firms in the United States fail each year (Knott and Posen, 2005). In the UK, the rate is thought to be similar with 20% of businesses failing in their first year while a further 30% fail within the first three years (BIS, 2013). It is crucial to understand what is meant by business exit and failure to ensure that entrepreneurs and governments can learn from, and respond to failure. This chapter explores the meaning and importance of business failure followed by why firms fail and the effect this can have on the entrepreneur. It also discusses how to avoid such failures and provides an insight into some famous failures.

scholarly journals Small Business Entrepreneurships In The United States

2011 ◽  
Vol 27 (6) ◽  
pp. 117 ◽  
Author(s):  
RamMohan R. Yallapragada ◽  
Mohammad Bhuiyan
Keyword(s):  
United States ◽  
Small Business ◽  
Customer Service ◽  
Small Businesses ◽  
The United States ◽  
Small Business Administration ◽  
Efficient Operation ◽  
Access To Credit ◽  
Service Information ◽  
Qualified Personnel

A small business entrepreneur is defined as an individual who establishes and manages a business for the principal purpose of profit and growth. Small businesses constitute an increasingly large proportion of businesses generally in the United States economy. They account for 39 per cent of the United States gross national product and create two out of every three new jobs in our economy. Seven important prerequisites are identified as being necessary for successfully operating a small business. These include adequate financing, qualified personnel, efficient operation and production, marketing and sales, customer service, information management and administration. One of the most significant contributors to failure of a small business relates to acquisition of adequate capital. Small Business Administration (SBA) was established by Federal Government in 1953 to provide low interest loans to small business borrowers that would not otherwise have access to credit. However, there is some criticism that these SBA programs unfairly benefit, not the small businesses, but the financial institutions that participate in the SBA loan programs. Another significant source of debt financing to small businesses is known as micro-financing, started as new wave in providing capital to small businesses by the Nobel Peace Prize winner, Muhammad Yunus, in Bangladesh.

Government Support for Small Businesses in the United States of America and China

2019 ◽  
Vol 7 (1) ◽  
pp. 58-62
Author(s):  
Ю. Нормова ◽  
Yu. Normova
Keyword(s):  
United States ◽  
Small Business ◽  
United States Of America ◽  
Small Businesses ◽  
The United States ◽  
Government Support ◽  
Small Business Administration ◽  
Small Business Development ◽  
Business System ◽  
State Programs

The article discusses the place and role of small businesses in the United States of America and China. The results of the study of the current level of development of the small business sector and its support in these countries, including statistical indicators of entrepreneurship development, are presented. The study is based on the analysis of support tools for small businesses. Key features of the small business system are highlighted. The state program supports it. The main directions and program activities focused on small business development are analyzed. Special attention is paid to monitoring the activities of the Small Business Administration, measures to support entrepreneurs, state financial assistance to small businesses, and sources of funding. Based on the analysis carried out, basic state programs and the territorial infrastructure of small business support were noted, and the high socio-economic orientation of small businesses was noted.

Prediction model of business success or failure for Palestinian small enterprises in the West Bank

2018 ◽  
Vol 10 (1) ◽  
pp. 60-80 ◽  
Author(s):  
Samir D. Baidoun ◽  
Robert N. Lussier ◽  
Maisa Burbar ◽  
Sawsan Awashra
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Small Firms ◽  
West Bank ◽  
High Rate ◽  
Business Failure ◽  
Business Success ◽  
The West ◽  
Content Type ◽  
Random Guessing

Purpose The aim of this study is to examine the factors that lead to success or failure of a small business in the West Bank of Palestine. Design/methodology/approach This study methodology is a survey research, testing the Lussier model of business success and failure with a sample of 246 small businesses (90 failed and 156 successful) to better understand the reasons of their success or failure using logistic regression statistical analysis. Findings The model is significant (p = 0.000); it will predict a group of businesses as successful or failed more accurately than random guessing 99 per cent of the time. The model will also predict a specific small firm as successful or failed 94 per cent of the time vs. 50 per cent for random guessing. The r-square is very high (r = 0.70), indicating that the model variables are, in fact, significant predictors of success or failure. Results indicate that having adequate capital, keeping good records with financial controls, making plans and getting professional advice on how to manage the firm are the most important factors for the viability and success of small businesses. Practical implications With the high rate of small business failure globally, results of this study provide a list of variables that contribute to the success of small firms. Firms that focus on these important factors will increase their odds of success. Thus, avoiding failure, firms better utilize resources that contribute to economic growth. Originality/value This is the first study that looks at success and failure of small businesses in Palestine. There is no one single accepted theory that may be applied to small businesses. This paper aims to further contribute to the global validity of Lussier success and failure model moving toward a theory to better understand why some businesses succeed and others fail.

scholarly journals Do Performance Goals and Development, Feedback and Recognition, and a Climate of Trust Improve Employee Engagement in Small Businesses in the United States?

2021 ◽  
Vol 14 (6) ◽  
pp. 1
Author(s):  
Tywanda D. Tate ◽  
Franklin M. Lartey ◽  
Phillip M. Randall
Keyword(s):  
United States ◽  
Small Business ◽  
Regression Model ◽  
Performance Management ◽  
Employee Engagement ◽  
Small Businesses ◽  
Pearson Correlation ◽  
The United States ◽  
Performance Goals ◽  
Overall Performance

Small businesses are the predominant contributors to the U.S. economy, yet they face many challenges to remain competitive and sustainable. There are several reasons a small business could fail, including a lack of human resources, limited financial resources, competition, technological advancements, disaster, and globalization. Improving employee performance by getting them engaged and productive in their work is an issue that cannot be overlooked for small businesses to function and remain competitive. There is limited empirical evidence that explains the dimensions of performance management and employee engagement in small businesses. However, how small businesses sustain their long-term performance remains uncertain. This study sought to bring together two previously distinct constructs: overall employee engagement and overall performance management, characterized by performance goals and development, a climate of trust, and feedback and recognition. The research was correlational in nature. A survey was conducted to generate and analyze data gathered from 121 employees of small businesses located in the United States. A series of Pearson correlation analyses confirmed the existence of statistically significant positive relationships between employee engagement and each variable of performance management, namely performance goals and development, feedback and recognition, and climate of trust. Notwithstanding these positive correlations, a multiple regression model with the three performance management variables as independent variables and employee engagement as the dependent variable suggested that there was a statistically significant regression model F(3, 117) = 32.34, p < .001, R2 = .453, explaining 45.3% of the variability in employee engagement. Nonetheless, this model confirmed that the variables performance goals and development and climate of trust were not statistically significant in the model (p > .05). In other words, only the feedback and recognition variable was statistically significant in the regression model, suggesting that it explained most of the variability in engagement, including that already explained by the other two variables. Overall, the outcome of this study suggests that small businesses implementing performance management processes have more engaged employees. The conclusions drawn from these findings suggest that overall performance management and overall employee engagement contribute to small business productivity and organizational success.

scholarly journals How Well Did PPP Loans Reach Low- and Moderate-Income Communities?

2021 ◽  
pp. 1-5
Author(s):  
Garrett Borawski ◽  
Mark Schweitzer
Keyword(s):  
Small Business ◽  
American Indian ◽  
Alaska Native ◽  
Small Businesses ◽  
Business Administration ◽  
Small Business Administration ◽  
Census Tracts

We investigate the degree to which Paycheck Protection Program (PPP) loans reached small businesses in low- and moderate-income (LMI) communities. We use PPP loan data from the Small Business Administration that we geocode and link to census tracts. We assess the program’s reach in a few ways and focus on the number of loans, rather than the amount of funds, that went to different areas in order to capture the program’s impact on businesses with fewer than 50 employees—the vast majority of small businesses. We find evidence that the program did have a broad reach within LMI communities, but that it reached higher-income communities to a greater extent and areas with Black, Hispanic, and American Indian or Alaska Native majorities to a lesser extent.

scholarly journals Small Business Owners’ Perception of Balanced Scorecard for Business Survival and Growth

2021 ◽  
Vol 9 (10) ◽  
pp. 14-33
Author(s):  
Dr. Emad Ahmed ◽  
Dr. Medhat Alsafadi
Keyword(s):  
United States ◽  
Small Business ◽  
Balanced Scorecard ◽  
Small Businesses ◽  
The United States ◽  
Business Owners ◽  
Small Business Owners ◽  
Business Growth ◽  
Business Survival ◽  
The Balanced Scorecard

The United States Small Business Administration (SBA) defines Small Business Enterprises (SMEs) business establishments that are independently owned managed or operated. Small business organization indicates that some of them have found the Balanced Scorecard to be very significant in boosting general performance in two key perspectives: higher complexity and management capability and drives change and enhance rapid growth. However, in the recent past, there has been increased study on the adoption of BSC in small organizations. The objective of this study was to determine the how small business owners in the United States perceive the aspects of balance score card in regard to business survivability, growth and competitiveness. Hypotheses that were to be answered include H1: Small business owners’ perceive learning and growth as the most significant perspective for their business survival, growth, and competitiveness beside the financial perspective. H2: Small business owners’ perceive customers as the most significant perspective for business growth, survival, and competitiveness. H3: Small businesses owners perceive internal business processes as the most significant perspective for their business growth, survival, and competitiveness. The philosophy adopted is positivist with explanatory and descriptive strategies. The approach of the research is quantitative using ANOVA analysis. The 100 sample companies were selected from the Best 100 small business in the SBA website and survey questionnaire sent online to this selected companies. The result of the research indicated that the most significant Balanced Scorecard perspective is the customer. At the end of the research, it was deciphered that all initiatives that the small business listed in SBA undertake when applying the BSC, customer focus is always the guiding force. Therefore, it can be stated overly that there a significant positive perception of the Balanced Scorecard as a tool to enhance growth and survivability among small businesses.

THE RELATIONSHIP BETWEEN INSTITUTIONS OF HIGHER EDUCATION AND SMALL BUSINESS IN THE UNITED STATES

1994 ◽  
Vol 02 (03) ◽  
pp. 771-798 ◽  
Author(s):  
JAIME R SILVA CASTAN
Keyword(s):  
Higher Education ◽  
United States ◽  
Small Business ◽  
Small Businesses ◽  
The United States ◽  
Institutions Of Higher Education ◽  
Business Sector ◽  
Media Attention ◽  
Advantageous Position ◽  
The Relationship

In recent years, a number of trends have concurrently contributed to promote collaboration between institutions of higher education and small businesses in the United States. These trends include academic institutions’ need for new sources of revenue, students’ growing interest in careers in business, increased media attention to entrepreneurship and small business, and industrialists’ search for a competitively advantageous position. The outcome of these relationships has been positive for both parties. The purpose of this paper, therefore, is to examine the diverse relationships between colleges and universities and the small business sector that currently exist in the United States. The findings of this paper focus on (1) how the relationships between U.S. institutions of higher education and small businesses have been institutionalized, (2) types of research methodologies used in the analysis of these relationships, and (3) the identification of specific areas for further research.

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