An Exploratory Study of Predicting Perceived Success and Survival of Small Businesses

Abstract

This study examined a variety of predictors as they related to survival of small businesses and their perceived success. Specifically, we assessed the relationships of perceptions of success and survival of small businesses with the motivational sources to begin the business, the four requirements cited by Drucker (1985), marketing and business planning activity, financial base, handling of business problems and identified sources of assistance with those problems, and demographics or business backgrounds of the small business owners. 128 small business owners representing the service, manufacturing, and retail sectors were interviewed. The marketing variables were the only ones that were predictive of success, suggesting the need for a more comprehensive framework to assess success of small businesses.