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Article
Publication date: 26 January 2021

Ogechi Adeola, Prince Gyimah, Kingsley Opoku Appiah and Robert N. Lussier

This study contributes to answering the question, can critical success factors of small businesses in emerging markets advance United Nation (UN) Sustainable Development…

Abstract

Purpose

This study contributes to answering the question, can critical success factors of small businesses in emerging markets advance United Nation (UN) Sustainable Development Goals (SDGs)? Specifically, this study aims to explore the critical factors contributing to the success of small businesses and ultimately the UN SDGs in the emerging market of Nigeria.

Design/methodology/approach

The design is survey research testing the Lussier success vs failure prediction model for small businesses in Nigeria. The methodology includes a logistic regression model to better understand and predict the factors that contribute to success or failure using a data set of 201 small businesses in Nigeria.

Findings

The findings support the validity of the Lussier model (p = 0.000) in Nigeria as the model accurately predicted 84.4% of the small businesses as successful or failed with a high R-square value (R = 0.540). The most significant factors (t-values < 0.05) that predict the success or failure of businesses support the findings that business owners that start with adequate capital, keep records and financial controls, use professional advice, have better product/service timing, and have parents who own businesses can increase the probability of success.

Practical implications

The study provides a list of critical success factors contributing to the growth of small business in Nigeria, the largest economy in Africa. The findings can help entrepreneurs avoid failure and advance UN SDGs 1, 2, 8 and 10. Implications for current and future entrepreneurs, public agencies, consultants, educators, policymakers, suppliers and investors are discussed.

Originality/value

This is the first study to determine the factors that contribute to the success or failure of small businesses in Nigeria using the Lussier model. It also discusses how to advance four of the UN sustainability goals. Results support the Lussier model's global validity that can be used in both emerging and developed markets, and it contributes to the development of theory.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 17 no. 1
Type: Research Article
ISSN: 2042-5961

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Article
Publication date: 22 April 2005

Robert N. Lussier

The purpose of this study was to use the Lussier (1995) generic success versus failure (S/F) prediction model to develop a real estate industry specific model (S/F …

Abstract

The purpose of this study was to use the Lussier (1995) generic success versus failure (S/F) prediction model to develop a real estate industry specific model (S/F = f[industry experience, age, advisors, planning, capital]). Using logistic regression analysis, the Lussier model (p = .028) and the real estate agency model (p = .001) are significant predictors of business success and failure. The Lussier model accurately predicted 84 percent of the surveyed successful and failed matched pairs agencies as being successful or failed and the real estate model predicted 74 percent. The Lussier model explained 68 percent of the variance of contributing factors to success versus failure and the real estate model explained 56 percent. Implications are discussed.

Details

American Journal of Business, vol. 20 no. 1
Type: Research Article
ISSN: 1935-5181

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Article
Publication date: 5 March 2018

Samir D. Baidoun, Robert N. Lussier, Maisa Burbar and Sawsan Awashra

The aim of this study is to examine the factors that lead to success or failure of a small business in the West Bank of Palestine.

Abstract

Purpose

The aim of this study is to examine the factors that lead to success or failure of a small business in the West Bank of Palestine.

Design/methodology/approach

This study methodology is a survey research, testing the Lussier model of business success and failure with a sample of 246 small businesses (90 failed and 156 successful) to better understand the reasons of their success or failure using logistic regression statistical analysis.

Findings

The model is significant (p = 0.000); it will predict a group of businesses as successful or failed more accurately than random guessing 99 per cent of the time. The model will also predict a specific small firm as successful or failed 94 per cent of the time vs. 50 per cent for random guessing. The r-square is very high (r = 0.70), indicating that the model variables are, in fact, significant predictors of success or failure. Results indicate that having adequate capital, keeping good records with financial controls, making plans and getting professional advice on how to manage the firm are the most important factors for the viability and success of small businesses.

Practical implications

With the high rate of small business failure globally, results of this study provide a list of variables that contribute to the success of small firms. Firms that focus on these important factors will increase their odds of success. Thus, avoiding failure, firms better utilize resources that contribute to economic growth.

Originality/value

This is the first study that looks at success and failure of small businesses in Palestine. There is no one single accepted theory that may be applied to small businesses. This paper aims to further contribute to the global validity of Lussier success and failure model moving toward a theory to better understand why some businesses succeed and others fail.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 10 no. 1
Type: Research Article
ISSN: 2053-4604

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Article
Publication date: 22 April 2001

Robert N. Lussier, Matthew C. Sonfield, Joel Corman and Mary McKinney

This descriptive study of 184 small firms identified strategies most frequently used by their managers. These strategies were identified using the Entrepreneurial Strategy…

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647

Abstract

This descriptive study of 184 small firms identified strategies most frequently used by their managers. These strategies were identified using the Entrepreneurial Strategy Matrix, a situational model in which the identification of levels of innovation and risk lead to prescriptions of appropriate strategies. Concurrently, this model was empirically tested and its validity supported. Of the strategies used, the five most common were: “work to create a competitive advantage,” “maintain innovation,” “lower the costs of developing and/or maintaining one’s venture,” “defend product/service as it is now,” and “create a first mover advantage.” In addition, there were no differences between the use of strategies by entrepreneurs in service and manufacturing industries.

Details

American Journal of Business, vol. 16 no. 1
Type: Research Article
ISSN: 1935-5181

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Article
Publication date: 7 March 2016

Shabir Hyder and Robert N. Lussier

– The aim of this paper is to examine the factors that lead to either success or failure of small firms in Pakistan.

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37128

Abstract

Purpose

The aim of this paper is to examine the factors that lead to either success or failure of small firms in Pakistan.

Design/methodology/approach

This study methodology is a survey research applying the Lussier Model of business success and failure with a sample of 143 small businesses to better understand the reasons of their success or failure using logistic regression statistical analysis.

Findings

Results indicate that business planning, proper employee staffing, adequate capital inflows and partnerships are important for the viability and success of small businesses in Pakistan.

Practical implications

Results provide further support for the validity of the Lussier Model in Pakistan and globally. Thus, small business owner/managers can use the model to help improve their chances of success and to avoid failure. Other stakeholders, including parties that assist and advise them, investors and institutions who/that provide them with capital and other resources and communities and society by and large, can also benefit from this model. The results and discussion also provide information to assist public policymakers in developing programs to support small business development.

Originality/value

This is the first study on success and failure of small businesses in Pakistan. With the great discrepancy in the literature as to which variables, in fact, distinguish success from failure, there is no accepted theory. Thus, this study contributes to the literature to better understand why some businesses succeed and others fail, and it supports the use of the Lussier Model globally.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 8 no. 1
Type: Research Article
ISSN: 2053-4604

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Article
Publication date: 22 April 2004

Robert N. Lussier and Matthew C. Sonfield

In the literature of family business, certain management activities, styles and characteristics have been most frequently examined. Yet no prior research focusing on the…

Abstract

In the literature of family business, certain management activities, styles and characteristics have been most frequently examined. Yet no prior research focusing on the relationship between these family businesses variables has been found. This is a survey‐research correlation study of 149 family businesses. Of the twelve variables studied, twenty of the sixty‐six correlations were found to be significant. Major findings are the consistent use of professional management activities, styles and characteristics in family businesses, and that using non‐family members within top management does not significantly increase the professionalism of management of such businesses.

Details

American Journal of Business, vol. 19 no. 1
Type: Research Article
ISSN: 1935-5181

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Article
Publication date: 11 February 2014

Claudia E. Halabí and Robert N. Lussier

– This study aims to develop an ordered probit model to explain and predict small business relative performance in Chile, South America.

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2001

Abstract

Purpose

This study aims to develop an ordered probit model to explain and predict small business relative performance in Chile, South America.

Design/methodology/approach

The design is survey research. The sample includes 403 small businesses classified as 158 failed firms, 101 mediocre firms and 144 successful firms within all economic sectors. The model variables are: internet, starting with adequate working capital, managing good financial and accounting records, planning, owner formal education, professional advice, having partners, parents owning a business, and marketing efforts.

Findings

The eight-variable model, tested with ordered probit, is a significant predictor of the level of performance at the 0.000 level. Also, six of the eight variables are significant predictors at the 0.05 level: internet, starting with adequate working capital, managing good financial and accounting records, owner, professional advice, having partners, parents owning a business, and marketing efforts. Two of the variables – i.e. planning and formal education – were not significant. ANOVA test of differences were run for each of the eight variables based on the level of performance were also run and results reported.

Practical implications

The model does in fact predict relative performance, so the model can be used to improve the probability of success. Thus, an entrepreneur can use the model to gain a better understanding of which resources are needed to increase the probability of success, and those who advise entrepreneurs can help them use the model. Investors and creditors can use the model to better assess a firm's potential for success. There is an extensive public policy implications discussion regarding how to use the model to assist entrepreneurial ventures so that society can benefit in direct and indirect ways via the allocation of limited resources toward higher potential businesses. Entrepreneurs and small business educators can use the model's variables to influence future business leaders, public policy makers, and their practices.

Originality/value

This study improves the Lussier 15 variable success versus failure prediction model by adding the use of the internet and taking out highly correlated variables. While Lussier and others ran logistic regression with only two levels of performance, this study uses the more robust ordered probit model with three levels of performance. It presents public policy with implications for Chilean institutions to promote entrepreneurship. Finally, it contributes to the literature because, to date, no empirical success versus failure studies have been found that were conducted in Chile or any small, open economies in Latin America

Details

Journal of Small Business and Enterprise Development, vol. 21 no. 1
Type: Research Article
ISSN: 1462-6004

Keywords

Content available
Article
Publication date: 1 March 2008

Matthew C. Sonfield and Robert N. Lussier

This is an empirical study of family firm size, as measured by the number of employees, and the relationship of a firmʼs size to a variety of management activities…

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1671

Abstract

This is an empirical study of family firm size, as measured by the number of employees, and the relationship of a firmʼs size to a variety of management activities, styles, and characteristics. A statistical analysis of data drawn from 159 American family businesses indicates significant differences by size with regard to the number of nonfamily members in top management, use of outside advisors, time spent engaged in strategic management, use of sophisticated methods of financial management, proportion of women family members involved in firm management, and level of conflict between family members. Implications are offered for family firm owner-managers, for those who assist such businesses, and for researchers in the field of family business.

Details

New England Journal of Entrepreneurship, vol. 11 no. 2
Type: Research Article
ISSN: 2574-8904

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Article
Publication date: 15 March 2016

Robert N Lussier, Chamara Bandara and Shaike Marom

To investigate small business success versus failure prediction variables in the emerging market of Sri Lanka.

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1383

Abstract

Purpose

To investigate small business success versus failure prediction variables in the emerging market of Sri Lanka.

Design/methodology/approach

Survey research was used to collect data in Sri Lanka with a sample size of 450 small businesses (200 failed and 250 successful) based on 10 of the 15 Lussier success versus failure prediction model variables.

Findings

The results reveal significant differences between all 10 successful and failed variables tested.

Practical implications

The findings indicate that small business owners and managers can benefit from starting their business with adequate capital, by maintaining good records with financial control, having prior business and management experience, developing a business plan, having higher levels of education, being able to staff the business, starting the business during the early stages of the product life cycle, having partners, and having marketing expertise.

Originality/value

This is the first major small business success versus failure study conducted in Sri Lanka. Results support the Lussier model’s validity in Sri Lanka, reinforcing its global validity and moving toward a theory; while demonstrating similarity to those in other economies. There is no accepted theory of success vs failure, thus this study is a foundation for further research and comparisons between developed countries and emerging markets.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 12 no. 2
Type: Research Article
ISSN: 2042-5961

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Article
Publication date: 30 January 2019

Josiane Fahed Sreih, Robert N. Lussier and Matthew C. Sonfield

The purpose of this paper is to, first, investigate the differences between generations in family businesses and, second, develop and verify the Family Business Success…

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1650

Abstract

Purpose

The purpose of this paper is to, first, investigate the differences between generations in family businesses and, second, develop and verify the Family Business Success Model ability to improve the probability of business success measured by perceived profits, growth and meeting the owners’ expectations.

Design/methodology/approach

Data were collected through questionnaires and personal interviews. Overall, 98 usable questionnaires were collected for statistical analysis with a response rate of 82 percent.

Findings

One-way ANOVA hypotheses testing of the variables found four significant differences between generations. Regression analysis found the Family Business Success Model to be significant. Family business owners can improve the probability of success by utilizing a team-management decision-making approach, effectively handling conflict effectively, formulating specific succession plans, developing strategic plans, using sophisticated financial management methods, dealing effectively with the founder’s influence and if they seek to grow, they should consider going public.

Practical implications

This study provides family business owners, managers, educators and public policy makers with the means to help family businesses survive and grow effectively throughout generations by using the Family Business Success Model. In addition, this study can help consultants and advisors of family businesses to understand the differences between the first, second and third generation family businesses from a holistic perspective and help them implement the family business model.

Originality/value

This study contributes to the literature as one of the few studies in the Lebanese emerging market that examines how the first, second and third generations of family businesses differ. More importantly, it develops a Family Business Success Model that improves the probability of success.

Details

Journal of Organizational Change Management, vol. 32 no. 1
Type: Research Article
ISSN: 0953-4814

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