Business Management and Innovation: A Critical Analysis of Small Business Success
In a management field, success and failure can be interpreted as measures of good or indifferent management, but it may occur for other reasons such as luck. Numerous terms have been used in the literature to describe firm failure, for example: bankruptcy, insolvency, liquidation, death, deregistering, discontinuance, ceasing to trade, closure, and exit. The overall aim of this research was to develop a clearer understanding of the factors that influence success of Micro Enterprises in Bamenda, as perceived by local Small business managers. The prime motive for conducting this study is to get a comprehensive model relating to the various success factors for small business managers. The mixed methods approach is used to avoid common method bias that could affect the results of this research study. In the first phase, a quantitative approach was employed in the form of a survey questionnaire, in order to identify the critical success factors for Small businesses in the city of Bamenda as perceived by Small business managers and to classify and compare successful and less successful Small businesses with respect to the identified factors. The second phase adopted a qualitative approach to explore how Small business Small business managers see the factors that facilitate business ‘success’ in relation to their experiences in Bamenda. This study has shown that understanding the success of small businesses from the perspective of small business managers is a complex challenge. Findings of the two phases of the study showed that a host of internal as well as external factors, which are usually moderated by other variables, seem to influence business success in Bamenda. However, while many factors are conceptually similar to other studies in different contexts, others are context-based and closely linked to the specific characteristics of the situation in Bamenda. This finding suggests a close relationship with networking and business success. It can be suggested that the ability to develop relationships and to build a method of business that strengthens and manages relationships is a significant factor in Cameroonian business and society in general.
Francis Mbah Takwi,
Business Management and Innovation: A Critical Analysis of Small Business Success, American Journal of Operations Management and Information Systems.
Vol. 5, No. 3,
2020, pp. 62-73.
Aidis, R., & Mickiewicz, T. (2016). Small business managers, expectations and business expansion: lessons from Lithuania. Europe-Asia Studies, 58 (6), 855-880.
Aldrich, H. E., & Reese, P. R. (2003). Does networking pay off? A panel study of small business managers in the research triangle. In N. Churchill, S. Birley, & J. Doutriaux.
Babbie, E. R. (2016). The practice of social research (12 ed.). Belmont: Wadsworth, Cengage Learning.
Baum, J., & Locke, E. A. (2015). The relationship of small business managerial traits, skill, and motivation to subsequent venture growth. Journal of Applied Psychology, 89 (4), 587-598.
Benzing, C., Chu, H. M., & Kara, O. (2016). Small business managers in Turkey: A factor analysis of motivations, success factors, and problems. Journal of small business management, 47 (1), 58-91.
Bolton Committee Report. (1971). Report of the Commission of Inquiry on Small Firms. London: HMSO.
Child, J. (2003). Predicting and understanding organization structure. Administrative Science Quarterly, 18 (2), 168-185.
Emory, C. W., & Cooper, D. R. (2011). Business research methods (4 ed.). New York: Irwin.
Man, T. W., & Lau, T. (2014). The context of Business Innovation in Hong Kong: an investigation through the patterns of small business managerial competencies in contrasting Agribusiness environments. Journal of Small Business and Enterprise Development, 12 (4), 464-481.
Mazzaro, T., Volery, T., Doss, N., & Thein, V. (1999). Factors influencing Small businesse start-ups. International Journal of Small business managerial Behaviour and Research, 5 (2), 48-130.
Nieman, G. (2016). Small business management: A South African approach. Van Schaik Publishers.
OECD, African Development Bank. (2009). African economic outlook 2009. Paris: African Development Bank.
Perez, E. H., & Canino, R. M. (2009). The importance of the small business manager’s perception of "success". Review of International Comparative Management, 10 (5), 990-1010.
Pérez, S., Llopis, A., & Llopis, J. (2004). The determinants of survival of Spanish Agribusiness firms. Review of Industrial Organisation, 25 (3), 251-273.
Polit, D. F., & Hungler, B. P. (1999). Nursing research: Principles and methods (6th ed.). Philadelphia: Lippincott.
Sandberg, K. W. (2003). An exploratory study of women in micro enterprises: Gender-related differences. Journal of Small Business and Enterprise Development, 10 (4), 408-417.
Sapienza, H., & Grimm, C. (2007). Founder characteristics, start-up process and strategy/structure variables as predictors of shortline railroad performance. Owner-managership Theory and Practice, 22 (1), 5-24.
Siegel, R., Siegel, E., & MacMillan, I. C. (2003). Characteristics distinguishing high-growth ventures. Journal of Business Venturing, 8 (2), 169-180.
St Jean, E., Julien, P. -A., & Audet, J. (2014). Factors associated with growth change in ‘gazelles’. Journal of Enterprising Culture, 16 (2), 161-188.
Takwi Mbah (2014). Contemporary business management, Green Edition. McDavid consulting group
Temtime, Z. T., & Pansiri, J. (2004). Small business critical success/failure factors in developing economies: some evidences from Botswana. American Journal of Applied Sciences, 1 (1), 18-25.
The Organisation for Economic Co-operation and Development. (2014). OECD Small business and Owner-managership outlook. Paris: OECD Publishing.
The World Bank. (2009). Doing Business 2009. Washington, DC: The World Bank.
The World Economic Forum, The International Bank for Reconstruction and Development/The World Bank, and The African Development Bank. (2009). The Africa competitiveness report 2009. Geneva: World Economic Forum.
Wang, C. K., & Ang, B. L. (2004). Determinants of venture performance in Singapore. Journal of Small Business Management, 42 (2), 347-363.
Weinzimmer, L. G. (2003). A replication and extension of organizational growth determinants. Journal of Business Research, 48 (1), 35-41.
Woldie, A., Leighton, P., & Adesua, A. (2016). Factors influencing Micro Enterprises (Small businesses): an exploratory study of owner/manager and firm characteristics. Banks and Bank Systems, 3 (3), 5-13.
Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2016). Business research methods (8th ed.). South-Western, Cengage Learning.