Key factors for small business success: New Research

small business success
Key factors for small business success: New Research
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New research finds what makes a business successful. Whilst there is a list of factors one thing in particular makes all the difference.

A paper just published this week in the Journal of Social and Development Sciences conducted a review of hundreds of previous research studies looking at the success factors of small businesses.

What the study found was that the three key areas which are critical for small business success:

The attributes of the entrepreneur:

  1. Resilience
  2. Interpersonal skills
  3. Communication skills
  4. Management skills
  5. Motivation
  6. Determination
  7. Decision making-skills, and
  8. The ability to be able to learn and un-learn rapidly (flexibility)

Attributes of the actual business:

  1. The learning capability of the business
  2. Innovation capability
  3. Strategic approach to management
  4. Customer orientation
  5. Efficient use of human resources
  6. Focus on a market niche
  7. Adequate financial and technological resources

External environmental orientation:

  1. Staying up-to-date and being able to deal with legal, political and economic changes.

The critical importance of change

Whilst numerically most of the factors centre around the attributes of the entrepreneur, they discovered that it was the agility of the enterprise as a whole in the face of change that underpins business success. There is central theme in all of the research of remaining observant and noticing what are called the ‘weak signals’ of change which enable businesses to embrace change, pivot and move with the continual changes occurring in the environment. These include technological, political and economic changes for example.

So as long as the factors and attributes of the entrepreneur and the business combine to create an agile, change aware process and business, they should be successful.

Personally I don’t think this just applies to small businesses.

Reference

Okreglicka, M. (2016). Key Factors of Small Business Success: Literature Review. Journal of Social and Development Sciences, 6(4), 30.

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David Wilkinson

David Wilkinson is the Editor-in-Chief of the Oxford Review. He is also acknowledged to be one of the world's leading experts in dealing with ambiguity and uncertainty and developing emotional resilience. David teaches and conducts research at a number of universities including the University of Oxford, Medical Sciences Division, Cardiff University, Oxford Brookes University School of Business and many more. He has worked with many organisations as a consultant and executive coach including Schroders, where he coaches and runs their leadership and management programmes, Royal Mail, Aimia, Hyundai, The RAF, The Pentagon, the governments of the UK, US, Saudi, Oman and the Yemen for example. In 2010 he developed the world's first and only model and programme for developing emotional resilience across entire populations and organisations which has since become known as the Fear to Flow model which is the subject of his next book. In 2012 he drove a 1973 VW across six countries in Southern Africa whilst collecting money for charity and conducting on the ground charity work including developing emotional literature in children and orphans in Africa and a number of other activities. He is the author of The Ambiguity Advanatage: What great leaders are great at, published by Palgrave Macmillian. See more: About: About David Wikipedia: David's Wikipedia Page

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