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The success or failure of a new business is often dependent on overcoming a series of potential barriers, eg securing sufficient financial backing, adequate and appropriate guidance and training etc. Yet, in light of the substantial growth rate of micro and small businesses, there has been little research into the experiences of potential and new business owners during the start‐up of such enterprises. To date there has been no systematic study of this group in the UK, and many questions remain unanswered. This study of micro and small business during the initialisation and formation of new venture creation (eg pre‐start‐up, 0‐6 months and 6‐12 months∥ sought to answer some of those questions. It identifies the needs of new business owners, the barriers they encounter, and the strategies they use to overcome those obstacles. The findings indicate that financial difficulties and the attitudes of banks towards new business owners are the main barriers to successful enterprise creation, with mentors and more specific advice cited as the assistance regarded as affording the greatest benefit to potential and new business owners. In addition, small and micro business owners are going out of business, or are unable to fulfil their potential, because they are denied access to those factors that promote success.
Journal of Small Business and Enterprise Development – Emerald Publishing
Published: Dec 1, 2000
Keywords: Start‐ups; Entrepreneurialism; Barriers
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