Small business performance: business, strategy and owner-manager characteristics

Robert A. Blackburn, Mark Hart, Thomas Wainwright

Research output: Contribution to journalArticle

Abstract

Purpose: This paper aims to contribute to the understanding of the factors that influence small to medium-sized enterprise (SME) performance and particularly, growth. Design/methodology/approach: This paper utilises an original data set of 360 SMEs employing 5-249 people to run logit regression models of employment growth, turnover growth and profitability. The models include characteristics of the businesses, the owner-managers and their strategies. Findings: The results suggest that size and age of enterprise dominate performance and are more important than strategy and the entrepreneurial characteristics of the owner. Having a business plan was also found to be important. Research limitations/implications: The results contribute to the development of theoretical and knowledge bases, as well as offering results that will be of interest to research and policy communities. The results are limited to a single survey, using cross-sectional data. Practical implications: The findings have a bearing on business growth strategy for policy makers. The results suggest that policy measures that promote the take-up of business plans and are targeted at younger, larger-sized businesses may have the greatest impact in terms of helping to facilitate business growth. Originality/value: A novel feature of the models is the incorporation of entrepreneurial traits and whether there were any collaborative joint venture arrangements.
LanguageEnglish
Pages8-27
Number of pages20
JournalJournal of Small Business and Enterprise Development
Volume20
Issue number1
DOIs
Publication statusPublished - Feb 2013

Fingerprint

Business strategy
Business growth
Business performance
Owner-managers
Enterprise performance
Business plan
Small business
Regression model
Joint ventures
Owners
Knowledge base
Employment growth
Influence factors
Profitability
Logit regression
Turnover
Politicians
Small and medium-sized enterprises
Cross-sectional data
Policy measures

Keywords

  • small business performance
  • entrepreneurial traits
  • SME growth
  • United Kingdom
  • entrepreneurialism
  • small to medium-sized enterprises

Cite this

@article{52823d42c9a04d49a5f06fa1501c9c7f,
title = "Small business performance: business, strategy and owner-manager characteristics",
abstract = "Purpose: This paper aims to contribute to the understanding of the factors that influence small to medium-sized enterprise (SME) performance and particularly, growth. Design/methodology/approach: This paper utilises an original data set of 360 SMEs employing 5-249 people to run logit regression models of employment growth, turnover growth and profitability. The models include characteristics of the businesses, the owner-managers and their strategies. Findings: The results suggest that size and age of enterprise dominate performance and are more important than strategy and the entrepreneurial characteristics of the owner. Having a business plan was also found to be important. Research limitations/implications: The results contribute to the development of theoretical and knowledge bases, as well as offering results that will be of interest to research and policy communities. The results are limited to a single survey, using cross-sectional data. Practical implications: The findings have a bearing on business growth strategy for policy makers. The results suggest that policy measures that promote the take-up of business plans and are targeted at younger, larger-sized businesses may have the greatest impact in terms of helping to facilitate business growth. Originality/value: A novel feature of the models is the incorporation of entrepreneurial traits and whether there were any collaborative joint venture arrangements.",
keywords = "small business performance, entrepreneurial traits, SME growth, United Kingdom, entrepreneurialism, small to medium-sized enterprises",
author = "Blackburn, {Robert A.} and Mark Hart and Thomas Wainwright",
year = "2013",
month = "2",
doi = "10.1108/14626001311298394",
language = "English",
volume = "20",
pages = "8--27",
journal = "Journal of Small Business and Enterprise Development",
issn = "1462-6004",
publisher = "Emerald Group Publishing Ltd.",
number = "1",

}

Small business performance : business, strategy and owner-manager characteristics. / Blackburn, Robert A.; Hart, Mark; Wainwright, Thomas.

In: Journal of Small Business and Enterprise Development, Vol. 20, No. 1, 02.2013, p. 8-27.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Small business performance

T2 - Journal of Small Business and Enterprise Development

AU - Blackburn, Robert A.

AU - Hart, Mark

AU - Wainwright, Thomas

PY - 2013/2

Y1 - 2013/2

N2 - Purpose: This paper aims to contribute to the understanding of the factors that influence small to medium-sized enterprise (SME) performance and particularly, growth. Design/methodology/approach: This paper utilises an original data set of 360 SMEs employing 5-249 people to run logit regression models of employment growth, turnover growth and profitability. The models include characteristics of the businesses, the owner-managers and their strategies. Findings: The results suggest that size and age of enterprise dominate performance and are more important than strategy and the entrepreneurial characteristics of the owner. Having a business plan was also found to be important. Research limitations/implications: The results contribute to the development of theoretical and knowledge bases, as well as offering results that will be of interest to research and policy communities. The results are limited to a single survey, using cross-sectional data. Practical implications: The findings have a bearing on business growth strategy for policy makers. The results suggest that policy measures that promote the take-up of business plans and are targeted at younger, larger-sized businesses may have the greatest impact in terms of helping to facilitate business growth. Originality/value: A novel feature of the models is the incorporation of entrepreneurial traits and whether there were any collaborative joint venture arrangements.

AB - Purpose: This paper aims to contribute to the understanding of the factors that influence small to medium-sized enterprise (SME) performance and particularly, growth. Design/methodology/approach: This paper utilises an original data set of 360 SMEs employing 5-249 people to run logit regression models of employment growth, turnover growth and profitability. The models include characteristics of the businesses, the owner-managers and their strategies. Findings: The results suggest that size and age of enterprise dominate performance and are more important than strategy and the entrepreneurial characteristics of the owner. Having a business plan was also found to be important. Research limitations/implications: The results contribute to the development of theoretical and knowledge bases, as well as offering results that will be of interest to research and policy communities. The results are limited to a single survey, using cross-sectional data. Practical implications: The findings have a bearing on business growth strategy for policy makers. The results suggest that policy measures that promote the take-up of business plans and are targeted at younger, larger-sized businesses may have the greatest impact in terms of helping to facilitate business growth. Originality/value: A novel feature of the models is the incorporation of entrepreneurial traits and whether there were any collaborative joint venture arrangements.

KW - small business performance

KW - entrepreneurial traits

KW - SME growth

KW - United Kingdom

KW - entrepreneurialism

KW - small to medium-sized enterprises

UR - http://www.scopus.com/inward/record.url?scp=84874141528&partnerID=8YFLogxK

UR - http://www.emeraldinsight.com/journals.htm?articleid=17078141

U2 - 10.1108/14626001311298394

DO - 10.1108/14626001311298394

M3 - Article

VL - 20

SP - 8

EP - 27

JO - Journal of Small Business and Enterprise Development

JF - Journal of Small Business and Enterprise Development

SN - 1462-6004

IS - 1

ER -