Innovative Strategies for Small Retail Companies' Sustainability

Dr Desire S Luamba,Joel Chagadama,Dr Irene A Williams,Dr Marvin L J Blye

doi:10.37391/ijbmr.090311

Abstract

Forty-one percent of small American retail companies fail to succeed beyond 5 years. The purpose of this multiple case study is to explore strategies small retail business owners need for sustainability beyond 5 years. This study's data were collected through face-to-face interviews with 4 small successful retail business owners located in the United States southeastern region. Based on the conceptual framework of Schumpeter’s innovation theory, the paper provides 3 strategies that may prevent failure and lead to small business sustainability: passion and determination, market development and customer satisfaction, and business model innovation.

Highlights

The economic development or growth of a country depends on its business activities
As this study explores appropriate business strategies small retail business owners need for long-term sustainability and profitability, the authors collected data from the interview with real individuals who have experienced the phenomenon and who have had business experience for more than 5 years
This present paper will present recommendations that small business owners may need to sustain their business activities beyond their first 5 years and promote a positive social change in the local communities by improving the social and economic developments from income generated by new jobs

Summary

Introduction

The economic development or growth of a country depends on its business activities. To develop business activities, the United States created the Small Business Administration (SBA) on July 30th, 1953, with the mission to assist financially and technically small businesses to become economically viable and sustainable over time [1]. As this study explores appropriate business strategies small retail business owners need for long-term sustainability and profitability, the authors collected data from the interview with real individuals who have experienced the phenomenon and who have had business experience for more than 5 years. This present paper will present recommendations that small business owners may need to sustain their business activities beyond their first 5 years and promote a positive social change in the local communities by improving the social and economic developments from income generated by new jobs. Some researchers have explained the causes and consequences of small companies collapsing, but this research focuses on implementing strategies to sustain small companies' longevity

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