Key Factors of Small Business Success: Literature Review

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doi:10.22610/jsds.v6i4.857

Abstract

The success of small businesses sector is crucial for national economies of all countries around the world. This is why the constant analysis of determinants responsible for small firm success is necessary. It allows for a quickreaction to changingbusiness conditionsandthe continuous improvement ofmanagement methods. Literature reviewindicated that theanalysis of key success factorsof smallbusinesses is a commonlyundertakensubject, although it is difficult tofind acomprehensivestudy, completely classifying the determinants ofsuccessaccording to certain criteria.

Highlights

Twenty five years after D’Amboise & Muldowney (1988) proposed the creation of a separate, specific theory for small business, the scientists still have not agreed on specific approaches to small business theory
Management theories are essentially grounded on problems from large enterprises, and that means they cannot be extended to small firms because the latter have different characteristics (Leone, 1999)
Literature reviewindicated that theanalysis of the factorsof successof smallbusinesses isa commonlyundertakensubject, it is difficult tofind acomprehensivestudy, completely classifying the determinants ofsuccessaccording to certain criteria

Summary

Introduction

Twenty five years after D’Amboise & Muldowney (1988) proposed the creation of a separate, specific theory for small business, the scientists still have not agreed on specific approaches to small business theory. For a long time the dynamics of small enterprises has been analyzed and theorized as if they were large enterprises. This paradigm has led small entities to adopt management principles, techniques and practices that are not adequate to their reality (Iacono& Nagano, 2009). Many studies have reported that economic growth requires participation from small business units (Battilana & Casciaro, 2012). It is stated that success of the organization is typically defined by such economic measures as survival rate, growth in employees, sales increase, and profitability (Hibbler-Britt & Sussan, 2015) and is determined by many essential factors

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Conclusion