The critical factors for small business success

Abstract

This dissertation researches on the most basic issue of small business: how to manage small business successfully and what are critical factors for small business success through analysing reasons of small business failures and surveying the successful Chinese entrepreneurs in Darwin. Through analysing the reasons of small business failures, the author found that the owners/managers' incompetence, inexperience of management and lack of skills in management was the most important basic cause of failures though there were so many surface causes of business failures. Through surveying the 33 successful Chinese entrepreneurs in Darwin, the author found that they perceived good management, marketing factors, personal quality, and prior business experience as critical factors for small business success. The paper set up what are important to small business success through two approach: the descriptive approach-characteristics of a successful entrepreneur and the prescription approach-characteristics of a successful enterprise. The paper found that the innovation spirit and ability was an important ingredient of successful enterpreneurship and that strong competitive ability in management, ready to change and higher on scales reflecting need for achievement, independence, and effectiveness of their leadership were the typical characteristics of successful entrepreneurs. The paper also found that the existence of business opportunity, management ability and applying modern management methods were prerequisites for success in business and that the planning, managing growth and flexibility were very important factors for successful management of small business.

Date of Award	Dec 1996
Original language	English
Supervisor	Rodney Dean Salzman (Supervisor)