The Birth and Death of Small Businesses and Entrepreneurial Ventures: A Critical Review of Key Variables & Research Agenda

Abstract

According to the United States Small Business Administration (SBA), small business owners represent 99.9% of all U.S. firms and employ 48% of the private sector employees, which accounts for over 40% of the U.S. private sector payroll. Following global suit, the focus in the United States on entrepreneurship has been on the rise over the last decade and is a major source of employment and revenue, as well as spurring new innovation (Leutner et al., 2014, America’s Small Business Development Center [ASBDC], 2020; U.S. Small Business Administration [SBA], 2020). In order to get a full picture of entrepreneurship in the United States, research and many studies have been conducted to try to understand the accountability of strategic management and the tactical reasoning of entrepreneurs (Ciavarella et al., 2004; Hurtz & Donovan, 2000; Leutner et al., 2014; Mitchell et al., 2007; Owens, 2003; Rauch & Frese, 2000; Staniewski & Awruk, 2019). While there are many definitions of entrepreneurship, a commonly accepted definition is the behavior that is tied to the generation of value in innovative tendencies, techniques, and actions. Strategic management helps an organization, small business, or new venture to get equipped with the right management tools, anticipate changes, and direct the organizational activities along the right path as part of a decision-making process. The objective of this critical review and research agenda paper is to better understand the role strategic management plays in the birth and death of small businesses and new ventures. Further, to explore if certain personality traits of individuals are responsible for promoting such actions, more than others. The Theory of Planned Behavior is considered from a theoretical background perspective to view the lens of accountability of this body of research. Specifically, as a discipline, can strategic management likely be considered accountable for the birth and death of organizations, small businesses, and new ventures? Are certain personality traits of individuals more responsible for promoting such actions than others?