Abstract
This study investigates various threats to the survival of independent financial advisers in their organisational life cycle. Telephone interviews were conducted to gain more insight into the demographic data of the respondents and to attempt to group them into life cycle stages. Personal interviews were conducted to investigate the respondents' problems. The contribution of this study is twofold: First, general life cycle stages applicable to the businesses of independent financial advisers were determined. Secondly, the study identified the important problems as well as those that ought to be consideration in the advisers' businesses. The findings could be of assistance to independent financial advisers in analysing both their current business position and their planning for future requirements as the business develops from one stage to the next.
Highlights
As businesses progress through the various stages of organisational growth, various problems have to be solved (Hanks, Watson, Jansen & Chandler, 1993)
This study focuses on the first requirement, which is to investigate different factors that could threaten the survival of independent financial advisers in their organisational life cycle
The telephone interview results showed that the oldest business examined in this study was more than four decades old (44 years) while the youngest was less than one year old
Summary
As businesses progress through the various stages of organisational growth, various problems have to be solved (Hanks, Watson, Jansen & Chandler, 1993). The estimated 55 per cent failure rate for small businesses in their first five years and 81 per cent within ten years indicates that, if they do not address these problems, find possible solutions and implement the necessary strategies to address the factors hindering their growth, they will not survive (Dodge & Robbins, 1992). The small business sector shows weak innovation and absence of financial acumen, marketing, entrepreneurial flair, practical knowledge and human resource management. These pitfalls mean that many small businesses fail to reach their full potential and to grow (Sha, 2006)
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