The Success Factors of Small Business

Makarenko E.N., Chernysheva Yu.G., Polyakova I.A., Makarenko T.V.
International Journal of Economics and Business Administration, Volume VII, Special Issue 2, 280-288, 2019
DOI: 10.35808/ijeba/392

Abstract:

Purpose: Small businesses in the economy of any country are of great significance. However, their viability is much lower than large and even medium ones. As is known, only a little number of the established small enterprises will not go bankrupt in a year, and they will succeed and continue developing for the next five years by expanding their activities. Even a smaller number of small enterprises will be able to transform into the medium one. Therefore, it is necessary to investigate the factors that assist to define the success of small businesses’ performance and development. Design/Methodology/Approach: This commentary note studies, identifies and generalizes the success factors of small enterprises described in the works of many successful entrepreneurs both in Russia and abroad. The authors use the toolkit and methods of economic analysis, consider quantitative and qualitative characteristics and features of small business development as well as entrepreneurial abilities that allow to identify key factors for small businesses’ success. Findings: The authors have found that many successful entrepreneurs describing their experience in managing business and identifying main success factors of small businesses have similar opinions in this area. These main aspects have been identified. Practical Implications: The note provides practical recommendations to entrepreneurs establishing their small businesses and trying to develop them successfully. It describes main secrets of business and philosophies of entrepreneur’s actions. Originality/Value: The authors’ position is because business success is achieved by people who have not only the necessary economic knowledge but also those who have the necessary mindset, so called philosophy of success, personal attitude including intuition.


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