Small business performance: business, strategy and owner‐manager characteristics

Small business performance: business, strategy and owner‐manager characteristics Purpose – This paper aims to contribute to the understanding of the factors that influence small to medium‐sized enterprise (SME) performance and particularly, growth. Design/methodology/approach – This paper utilises an original data set of 360 SMEs employing 5‐249 people to run logit regression models of employment growth, turnover growth and profitability. The models include characteristics of the businesses, the owner‐managers and their strategies. Findings – The results suggest that size and age of enterprise dominate performance and are more important than strategy and the entrepreneurial characteristics of the owner. Having a business plan was also found to be important. Research limitations/implications – The results contribute to the development of theoretical and knowledge bases, as well as offering results that will be of interest to research and policy communities. The results are limited to a single survey, using cross‐sectional data. Practical implications – The findings have a bearing on business growth strategy for policy makers. The results suggest that policy measures that promote the take‐up of business plans and are targeted at younger, larger‐sized businesses may have the greatest impact in terms of helping to facilitate business growth. Originality/value – A novel feature of the models is the incorporation of entrepreneurial traits and whether there were any collaborative joint venture arrangements. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Small Business and Enterprise Development Emerald Publishing

Small business performance: business, strategy and owner‐manager characteristics

Loading next page...
 
/lp/emerald-publishing/small-business-performance-business-strategy-and-owner-manager-ZzpQor65L2
Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
1462-6004
DOI
10.1108/14626001311298394
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper aims to contribute to the understanding of the factors that influence small to medium‐sized enterprise (SME) performance and particularly, growth. Design/methodology/approach – This paper utilises an original data set of 360 SMEs employing 5‐249 people to run logit regression models of employment growth, turnover growth and profitability. The models include characteristics of the businesses, the owner‐managers and their strategies. Findings – The results suggest that size and age of enterprise dominate performance and are more important than strategy and the entrepreneurial characteristics of the owner. Having a business plan was also found to be important. Research limitations/implications – The results contribute to the development of theoretical and knowledge bases, as well as offering results that will be of interest to research and policy communities. The results are limited to a single survey, using cross‐sectional data. Practical implications – The findings have a bearing on business growth strategy for policy makers. The results suggest that policy measures that promote the take‐up of business plans and are targeted at younger, larger‐sized businesses may have the greatest impact in terms of helping to facilitate business growth. Originality/value – A novel feature of the models is the incorporation of entrepreneurial traits and whether there were any collaborative joint venture arrangements.

Journal

Journal of Small Business and Enterprise DevelopmentEmerald Publishing

Published: Feb 15, 2013

Keywords: Small business performance; Entrepreneurial traits; SME growth; United Kingdom; Entrepreneurialism; Small to medium‐sized enterprises

References

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off