The 1982 Characteristics of Business Owners dataset

The 1982 Characteristics of Business Owners (CBO) dataset is a microdata file containing data on approximately 91,000 small businesses and 100,000 owners of those businesses. This dataset is unique in that it unites information on the personal attributes of business owners with information on various attributes of their businesses. The CBO dataset is also distinguished by the large volume of data that it contains on minority and female business owners and their businesses. This paper provides an overview of the coverage and contents of the dataset, and the design of the survey upon which it is based. In addition, the strengths and limitations of the CBO dataset are discussed and illustrated through synopses of studies that made use of these data.Economist, U.S. Small Business Administration, Washington, D.C. The views expressed in this paper are the authors and do not necessarily represent those of the U.S. Small Business Administration.     

Antitrust,Innovation, Entrepreneurship and Small Business

The purpose of this article is to discuss a few aspects of antitrust enforcement that are directly related to small businesses. The first point concerns how the antitrust laws work as an economic "charter of freedom" by protecting our economy from the misuse of market power by dominant firms, or from anticompetitive collusion by groups of firms, or from anticompetitive mergers, all of which can blunt the mainspring of our economic success – competitive markets. Second is an expansion on the first theme which focuses on how antitrust enforcement helps preserve two freedoms that I think small businesses care about very much: the freedom to engage in entrepreneurship, and the freedom to innovate. A final discussion involves a few recent cases recently seen at the Antitrust Division that illustrate the many ways in which antitrust enforcement has helped the small business marketplace.     

Analysis of young,small firms that have closed: delineating successful from unsuccessful closures

This study of small businesses created between 1989 and 1992, and then closed down between 1993 and 1996, reveals that owners often described their firms as “successful” when the closure decision was made. Decisions to discontinue operations of young firms are shaped by intertwined factors including opportunity costs, switching costs, and noneconomic considerations. Empirical investigation is undertaken to explain the seeming paradox of successful small-business closure. Alternative opportunities are identified as a key reason for choosing to discontinue successful firms: If something more attractive comes along, the owner may close down.     

The rapid internationalization of high technology firms created through the commercialization of academic research

This article uses the international entrepreneurship framework developed by Jones, M. V., & Coviello, N. E. (2005). Internationalization: Conceptualizing an entrepreneurial process of behavior in time. Journal of International Business Studies, 36(3): 284–303, to explore the internationalization of high technology firms created through the commercialization of academic research. In particular, the effect of networks and entrepreneurial orientation is explored. Theoretical sampling resulted in four cases being studied. The data suggests that the “fundamental” networks of the academics involved in the firms assisted in the identification and exploitation of initial opportunities to internationalize. The research also suggests that only certain dimensions of entrepreneurial orientation impacted the internationalization of firms. Specifically, risk taking, technological innovativeness, and autonomy in certain parts of the organization assist in the entrepreneurial stages, while proactiveness and product–market innovativeness assist the success of firms internationally.     

The Relationship between Written Business Plans and the Failure of Small Businesses in the U.S.

The objective of this study was to investigate the influence of planning on U.S. small business failures. A "failure" was defined as a bankruptcy with losses to creditors; firms with fewer than 500 employees were considered "small." Recently failed firms were selected randomly and matched with non-failed firms on the basis of age, size, industry, and location. The sampling frame was businesses listed in the Dun & Bradstreet credit reporting database. A paired-sample t -test was used to investigate differences between the failed firms and matched non-failed firms. The main conclusion was that very little formal planning goes on in U.S. small businesses; however, non-failed firms do more planning than similar failed firms did prior to failure.     

Tracking family businesses and their owners over time: panel attrition,manager departure and business demise

Analyses of business owners from whom data were gathered in 1997 and 2000 are used to predict two family business phenomena: the continued involvement by the owner-manager in the business and the continuation of the business. The most important factor in continuity is the respondent's assessment of the business as a success; successful businesses continue or are sold or gifted when the owner-manager leaves the business. Ceasing to be involved in a business should not be viewed as a business or a managerial failure. Some changes may be failures, but others should be viewed as ordinary business or family developments.     

Has new business creation in russia come to a halt?

Successful transformation of centrally planned economies requires not just the privatization of the existing firms, but also the formation of new ones. New entrants serve to correct for the central planners' neglect of such sectors as services and consumer goods, and their bias in favor of large firms. Indeed, Central European economies have been experiencing a rapid rate of new business creation, as measured by the change in the number of small firms. Russia also experienced a short period of explosive growth in the number of new business. However, since 1994 net new business formation has stagnated. This paper looks into the possible causes of this phenomenon.Official data on the change in the number of small businesses, which serve as a proxy for net new business formation, arouse justified suspicion because of the frequent changes in the definition of “small enterprise.” Like everywhere in the world, some Russian registered firms do not become operational, and some firms that have ceased operations do not legally disband. If the share of these “dead souls” in the total count of small firms changes over time and official statistics does not adjust its count accordingly, the data may show the opposite of the actual processes. This paper analyzes Russian data collection procedures and other evidence, and concludes that stagnation in the new business formation is a real phenomenon, rather than a statistical artifact.The difficulty in finding out the causes of stagnation is that empirical studies focus on the existing businesses and miss those that should have been born but were not. The problems faced by the incumbents and frustrated entrants may well be different. The likely causes of the end of new business creation are the increased tax and regulatory burden, combined with plunder by the numerous tax and regulatory authorities. Other possible explanations involve the incumbents' use of the authorities and/or racketeers to erect barriers against new entrants.     

The practice of corporate social performance in minority- versus nonminority-owned small businesses

This study compares corporate social performance in terms of charitable contributions of minority-owned and nonminority-owned small businesses. In this sample, minority-owned small businesses are younger, have less full-time employees, and lower annual sales. Minority-owned small businesses donate more funds to religious organizations than nonminority-owned small businesses. When annual sales are accounted for, minority-owned businesses contribute more total dollars to all charitable organizations than nonminority-owned firms. Suggestions for future research in this area are delineated.Judith Kenner Thompson is an Assistant Professor of Business and Society at the University of New Mexico. Her work has appeared inResearch in Corporate Social Performance and Policy, Business Forum, and theJournal of Small Business Management.Jacqueline N. Hood is an Assistant Professor of Organizational Behavior at the University of New Mexico. Her current research interests include gender issues in business, small business and entrepreneurship, and corporate social performance.     

Women business owners in traditional and non-traditional industries

Small businesses continue to grow in importance to the national economy. According to the Small Business Administration, America's 22 million small businesses generate more than half of the nation's Gross Domestic Product and are the principal source of new jobs. The National Foundation for Women Business Owners reported that between 1987 and 1994, the number of women-owned businesses grew by 78% and women-owned firms accounted for 36% of all firms. Although the growth in the number of women-owned businesses is encouraging, the size of such businesses remains small in terms of both revenues and number of employees, especially in comparison to male-owned businesses. One explanation for this disparity is that female business ownership is concentrated primarily in the retail and service industries where businesses are relatively smaller in terms of employment and revenue as opposed to high technology, construction, and manufacturing.One of the most fruitful streams of research in women's occupational choice has been based on social learning theory. Specifically, self-efficacy has been found to relate to both type and number of occupations considered by college men and women, and with regard to traditional and non-traditional occupations. Entrepreneurship researchers have also used social learning theory to study entrepreneurial intentions. This study builds on that background of women's career development and entrepreneurial intentions to examine differences between traditional and non-traditional women business owners. We examine 170 women business owners in various traditional and non-traditional businesses in Utah and Illinois. Questionnaires were the primary method of collecting data, in addition to 11 in-depth interviews from a sample of the survey respondents. Using a careers perspective, based on social learning theory, we hypothesized that women in these two different categories of industries would differ on levels of self-efficacy toward entrepreneurship or venture efficacy, their career expectations and their perceived social support. A second analysis was also done that explored the relationship between the same independent variables and success or performance of the business. The results offer support for using this integrative model to understand differences between women in traditional and non-traditional industries. The first analysis revealed that significant differences exist between the two groups on several of the independent variables. Traditional business owners had higher venture efficacy for opportunity recognition, higher career expectations of life balance and security and they reported that the financial support received from others was more important to them than those in non-traditional businesses. On the other hand, the non-traditional owners had higher venture efficacy for planning and higher career expectations for money or wealth than the traditional group.The second analysis explored whether success, as measured by sales, was affected by differences in venture efficacies, career expectations, or perceived support received by women in traditional businesses as compared to those in non-traditional ones. This analysis revealed that traditional women business owners might have different factors that contribute to their success than non-traditional owners. Specifically, for the traditional owners, venture efficacies for opportunity recognition and economic management as well as the career expectation of autonomy and money (or wealth) were positively related to sales. For the same group efficacy toward planning and the need for security were negatively related to sales. For the non-traditional women, venture efficacy toward planning and the career expectation of autonomy were positively related to sales while the expectation of money or wealth was negatively related. Also for the same group, the perceived importance of the emotional and financial support was negatively related to sales.In the past, most of the entrepreneurial research has used predominantly male samples of entrepreneurs. Those that include women entrepreneurs generally are comparative, between men and women. This study's comparison of two groups of women entrepreneurs offers a unique contribution to the field.Future research is recommended to further understand how venture efficacy and career expectations affect the decision to start a new business in a particular industry. It would be particularly beneficial to study venture efficacy and career expectations of prospective women entrepreneurs prior to the start of the business. Similarly, greater attention should be given to understanding how venture efficacy develops in different individuals.     

Examination of US Hispanic-owned,small retail and service businesses: an organizational life cycle approach

The importance of Hispanic-owned small businesses to the US economy has grown in recent years, yet, many of these businesses lag behind the performance of mainstream firms. One problem may be the lack of research on the strategic issues central to these businesses. This study attempts to fill this gap by examining the characteristics of Hispanic-owned small service and retail firms through the employment of the Churchill and Lewis (1983, Business Review, 30–50) organizational life cycle model. Five stages of business growth, typified by business performance indicators, problems, structural characteristics, and Hispanic owners’ demographics, were identified. Growth stages were found to be similar to those experienced by majority-owned small businesses. Theoretical and practical implications are discussed.     

The Long-Term Performance of Small Businesses: Are there Differences Between “Christian-Based” Companies and their Secular Counterparts?

Recent years have witnessed the proliferation of “Christian” companies in the U.S. These firms declare their belief in, and active pursuit of, the successful merging of biblical principles with business activities. Economic success, hard work, and biblical values are seen as capable of existing together in harmony. While the number of such businesses appears to be growing, there has been a dearth of any scientific study of these companies. No empirical research has been conducted to determine whether these religious values and behaviors have any significant impact on a company’s performance. The present study is designed to partially fill this gap. Specifically, it seeks to determine whether there are differences in long-term performance between self-proclaimed “Christian-based” businesses and their secular counterparts. Data were collected from 312 companies. A multivariate analysis of variance (MANOVA), followed by univariate ANOVAs, found significant differences between these two groups of firms on three of the four performance variables that were analyzed. Some explanations as well as limited generalizations and implications are developed.     

Perceptions of business ethics: Students vs. business people

The purpose of this study was to assess the perceptions of business students and of business practitioners regarding ethics in business. A survey consisting of a series of brief ethical situations was completed by 537 senior business majors and 158 experienced business people. They responded to the situations, first, as they believed the typical business person would respond and, second, as they believed the ethical response would be.The results indicate that both students and business people perceived a significant gap between the ethical response to the given situations and the typical business person's response. Students were significantly more accepting than business people of questionable ethical responses, and they also had a more negative view of the ethics of business people than did the experienced business people.The male students were more accepting of questionable ethical responses and saw less difference between typical and ethical responses than did the female students. However, male and female business people appeared to think alike with regard to both typical and ethical responses.Some suggested implications included the idea that businesses need to increase their efforts to promote ethical conduct and to make ethics a well-known priority in all actions and policies. Barbara C. Cole teaches Business Education classes at Foothills Technical Institute in Searcy, Arkansas. Her research is in the areas of business ethics and cooperative learning. She has published in Journal of Education for Business.Dennie L. Smith is Professor of Education at the University of Memphis, formerly Memphis State University. His writing on creativity, teaching strategies, and simulation systems has appeared in numerous journals and books. He has been a consultant to businesses for over 15 years in the areas of organizational development and decision making.     

Some Thoughts on Moriarty and Moeller

Abstact In a recent paper in Business Ethics Quarterly Professor Jeffrey Moriarty (2005) asserted the relevance of political philosophy to business ethics. Moriarty asked whether “businesses ought to be run (more) like states” and argued why that might be beneficial. This paper on the contrary asserts that there are distinct disadvantages to businesses attempting to be run more like states. Specifically, it asserts that any such an attempt increases the likelihood of the re-emergence of a totalitarian society as businesses currently often act as an intermediary between the individual and the state. The paper contemplates Moeller’s ambitions in the Weimar period for the business to be run like a state and the historical outcome of those ambitions. The paper also distinguishes between two different kinds of rights and argues that different kinds of rights pertain to different sectors which preclude business being run like a state. Dr. Michael Schwartz is an associate professor at the Royal Melbourne Institute of Technology. He also serves as the vice-president of the Australian Association for Professional and Applied Ethics. His research in the field of business ethics has been published in Research in Ethical Issues in Organizations, the Journal of Business Ethics, Business Ethics Quarterly and Business Ethics: A European Review.     

An Exploration of Entrepreneurial Activity among Asian Small Businesses in Britain

This paper investigates various aspects of Asian entrepreneurship based on a survey of small Indian, Pakistani and Bangladeshi businesses in Britain. It analyses the motives for business entry, the choice of initial business, the factors that influence business success and the validity of treating Asian businesses as a homogeneous group. It cannot support the hypothesis that Asians were pushed into self-employment in order to avoid unemployment. The nature of entrepreneurial entry, predominantly through small retail businesses, depends largely on the access to informal, rather than formal, sources of capital and information or advice as well as on the entrant's previous experience. Business success appears to be closely related both to the share of personal capital invested at start-up and to the entrepreneur's educational qualifications. The evidence suggests that the motives for business entry differ among the three Asian communities studied although that does not seem to have a lasting effect on their business success. The predisposition of many well educated Asian migrants towards establishing businesses with their own capital in an unfamiliar environment illustrates their entrepreneurial spirit. The paper points to the potential role of banks and government agencies in encouraging the creation of many more such small businesses in Britain.     

A study of the effect of age and gender upon student business ethics

The present survey was voluntarily and anonymously completed by 2,196 students enrolled in business courses at the University of Southern Mississippi. The intent of the survey was to determine whether or not age or gender played a role in a person's perception of proper ethical conduct.The findings suggests that gender is a significant factor in the determination of ethical conduct and that females are more ethical than males in their perception of business ethical situations.Students were divided into groups according to age as follows: under 21 years, 22–30 years, 31–40 years, and 40 plus years. The results of this survey also suggest that age is a determining factor in making ethical decisions. The statistics suggest that those students falling in the 40 plus years age group were the most ethical, followed in order by the 31–40 group, the 22–30 group and those of 21 years of age and under.Durwood Ruegger is currently an Associate Professor of Finance and General Business at the University of Southern Mississippi. Prior to joining the University, he was a practicing attorney and former municipal judge. His publications have appeared in theJournal of Health and Human Resources Administration, Labor Law Journal, Business Insights, andThe Practical Real Estate Lawyer.Ernest W. King is an Assistant Professor of Finance and General Business at the University of Southern Mississippi. He is a member of the Florida and Washington, D.C. Bars. His publications have appeared inBusiness Insights, Nursing Administration Quarterly, and theCPCU Journal.     

Community and managerial predictors of performance in small rural US retail and service firms

Conducting business in today's rural community environment offers social and economic promise along with uncertainty in facing the phenomenon of having fewer customers, who make fewer visits, and spend less per visit. This research highlights the importance of both community and managerial factors to performance evaluations of small rural retail and service firm owners. Using path analysis, direct and indirect effects on perceptual and financial performance were identified for a national US sample of 275 rural small-sized retail and service businesses. This study provides information from largely successful firms for developing marketing strategies and product/service offerings as a crucial step in assisting businesses in rural communities.     

The Congruence of Successful International Competitors:

This paper examines the marketing strategies and organization of a matched triad of American, British and Japanese companies competing in the UK market. The sample includes leading companies in industries identified as being under threat by the EC. The relative success of business was measured and strategies identified using multiple depth interviews with senior managers within the businesses. The strategies of successful companies were found to be similar and not dependent on their country of origin or industrial sector. The most successful companies had a balance of marketing, innovation, planning and entrepeneurial orientation. More of these successful firms were Japanese than American, and very few were British.     

Micro-Entrepreneurship in Niger: Factors Affecting the Success of Women Street Food Vendors

Micro-entrepreneurship in the informal sector plays a vital role in generating employment and income in West Africa. In this article, the authors examine business success factors for micro-entrepreneurs involved in the production and sale of street foods in Niger, drawing on the resource-based view theory. Business success was measured by size of firm and vendor's perception of enterprise growth. Their results indicate that business experience is an important success factor, while the need for cash is a constraint for business success. A rare resource, limited access to financial assets translates into limited opportunities for growth of these informal micro-enterprises into viable businesses.     

Women entrepreneurship in small service firms: motivations,barriers and performance

This article presents an exploratory study on the characteristics of women entrepreneurs and the businesses they run in the Valencia region. Following a close look at the evolution of literature on women entrepreneurs, the study shows how different internal and external factors affect the motivation, obstacles and performance of firms created by women. These results contribute towards a better understanding of business creation by women as they provide an empirical contrast of these variables (motivation, barriers and performance). Purpose: The purpose of this paper is to examine the characteristics of women entrepreneurs and the businesses they run in the Valencia Region of Spain, in order to contribute towards a better understanding of business creation by women, and the elements of motivation, barriers and success that influence and characterize the activities of women entrepreneurs. Design/methodology/approach: A random sample of businesses with women founders, in the service sector located in the Valencia Region, were surveyed with a personalized questionnaire focusing on the factors of expansion, financing, marital and family status. Findings: The results of the exploratory research show that different internal and external factors affect the motivation, obstacles to success and performance of firms created by women. It is clear that type of financial support, demographic factors, age at which the new business venture is undertaken, use of family loans and the initial size of firm are all instrumental in subsequent business success. Research limitations/implications: The research was undertaken using a relatively small sample of firms in one region of Spain. The study needs to replicated in a range of different countries in order to further test the generality and generalizability of the substantive results. The implications centre on women entrepreneurs' motivations, business success and failure. Originality/value: This paper contributes to a better understanding of business creation by women and the factors which are instrumental in their success, together with a better understanding of the potential obstacles and barriers.     

Why and how should SHE make her way into the family business boardroom?

The most successful and longest-enduring family firms are progressively encouraging the active presence of women on their corporate boards. Why is the presence of women on boards so important for family firms? And how can policy makers and controlling owners encourage the active presence of women on family business corporate boards? By integrating the literature on women in governance and the goals of family businesses, we take a step toward increasing shareholder awareness of the economic and noneconomic benefits that women can bring to the family business boardroom. Using theory and empirical evidence, we show that the presence of women on corporate boards can be instrumental for the controlling owners of a family business to achieve prosperity and success, to preserve family cohesion, and to improve the reputation of the family and business simultaneously. Furthermore, we discuss the socioemotional and economic ramifications of excluding women from the family business board of directors. We conclude with four practical recommendations for encouraging the active presence of women on family business boards.