The successful and failure of entrepreneurs of small industrial business with emphasis on their level of education and training

Seenivasan R

doi:10.26524/jms.2020.7

Abstract

This paper examines the determinants of business start-up, long and short-term success, and failure of small businesses. Entrepreneurs and small firm success and failure have been the subject of extensive research. It is important to understand the external, internal, and motivational factors responsible for business start-up, the barriers faced during the initial and continuous stages of trading and the advice and assistance available to entrepreneurs. This paper is aiming in explaining the main factors are related to successful and failure of entrepreneurs in small industrial business in Ahvaz city. Based on a random sampling 51 enterprisers marked as successful and failures are selected. The data collected based on a triangulation method (interview, questionnaire, and observation). The results show that: a- from the failure entrepreneurs point of view the following issues were important effects on their weak performance and failure their business: weak managing technical skills, financial issues, planning and organizing of their business, economic issues, informal issues, weak managingconceptual skills, personnel skills, education and low training, and weak human relation. b- from the successful entrepreneurs point of view the following issues were important effects on their high performance in their business: suitable managing technical skills, selecting appropriate personnel with relevant skills, education and paying more attention to personnel training,application of management conceptual skills, financial issues, better human relation, recognizethe economic situation, planning and organizing of their business and informal issues.

Highlights

Small businesses can be a vehicle for both Schumpeterian entrepreneurs introducing new products and processes that change the industry and for people who run and own a business for a living
There are many factors, which influence the formation of a new business venture and its subsequent success or failure. These include the internal factors and external factors Both the external and internal environment of the small business will affect the first idea of developing a business a- These two main factors together with start-up activities influence the entrepreneur’s decision to initiate a business
A researcher based questionnaire to guide the data collection process were developed around four areas: (1) personal information of entrepreneurs, 2- employees information, 3- correct situation of company

Summary

Introduction

Small businesses can be a vehicle for both Schumpeterian entrepreneurs introducing new products and processes that change the industry and for people who run and own a business for a living. The third wave is Post- Florist system of management, which deals with changes in the character of technological progress, system of work and human resource development Study these waves show that flexible automation has various effects resulting in a shift from large to smaller firms. There are many factors, which influence the formation of a new business venture and its subsequent success or failure These include the internal factors (personalities of entrepreneurs, their motivation, efforts, taking risk, tolerance for pursuing such a venture) and external factors ( economic & infrastructure conditions, inflation, market information, supply and demand for products and services, banks system, trade regulation, skilled personnel...) Both the external and internal environment of the small business will affect the first idea of developing a business a- These two main factors together with start-up activities influence the entrepreneur’s decision to initiate a business. In this stage entrepreneurs ability to compromise internal and external factors and better organization and structured his/her business are important

Theoretical framework of study

Methodology

Conclusion