Problem‐solving techniques of growing very small businesses

Abstract

Purpose

The paper aims to investigate the problems experienced and problem‐solving techniques of very small businesses during growth. Evidence shows that if managers can understand the potential for growth and the barriers in their own business path, they will be able to address the problems and achieve success. The purpose of the paper is therefore to provide guidelines to assist very small Black business entrepreneurs with overcoming growth problems, so to become sustainable.

Design/methodology/approach

A qualitative research approach with a combination of content analysis and grounded theory was used in the paper. The sample was restricted to very small Black business entrepreneurs in the formal sector, in Port Elizabeth, South Africa. Snowball sampling was used where the first participant identified supplied the names of other possible participants and so forth till the sample size of ten very small Black business entrepreneurs was obtained. One of the very small businesses had two owners, and another had three owners (total of 13 participants). The researcher collected the data through five rounds of mostly unstructured, non‐directive and in‐depth individual interviews on the Black entrepreneurs' premises (65 personal interviews in total). Observations and on‐site experiences were also noted. Utilising the constant comparative method, the problems could be divided into four main themes: solvable, partially solved, solved and ongoing problems and then further divided into seven management functions. The synchronic reliability method was used and the triangulation method was used to ensure validity. Coding of data also ensured both reliability and validity.

Findings

Problems are mostly solved through experimental learning with human resource and financial problems as top priority training areas to assist growth. Many problems are computer related and some are personal such as stress management. Workshops or mentorship are indicated as possible ways of solving problems.

Practical implications

General guidelines in five functional areas and in general were provided as to how problems could be solved to assist with growing these very small businesses. These guidelines are based on the experiences of the very small entrepreneur and to a lesser extent to what literature suggests. Suggestions were practically executable taking into consideration the time, money and staff constraints of very small business entrepreneurs.

Originality/value

The paper suggests guidelines and solutions for solving very small business growth problems.

Citation

Perks, S. (2010), "Problem‐solving techniques of growing very small businesses", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 4 No. 3, pp. 220-233. https://doi.org/10.1108/17506201011068228