Open AccessFactors responsible for the growth of small business
Author(s) -
JA Döckel,
A.A. Ligthelm
Publication year - 2015
Publication title -
suid-afrikaanse tydskrif vir ekonomiese en bestuurswetenskappe/south african journal of economic and management sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.277
H-Index - 17
eISSN - 2222-3436
pISSN - 1015-8812
DOI - 10.4102/sajems.v8i1.1283
Subject(s) - business , new business development , marketing , small business , business development , entrepreneurship , positive relationship , key (lock) , regression analysis , business model , industrial organization , finance , psychology , social psychology , machine learning , computer science , ecology , biology
Entrepreneurial conduct holds the key to economic growth. Thus those business that show growth and development are considered entrepreneurial, implying that SMME policy initiatives should focus on businesses with growth potential, and not the small business sector as a whole. The success of a small business seems to depend on the intentions of the owner, together with factors associated with the ability of, and opportunity for, the specific business to grow. The aim of this article is to make use of a multiple linear regression model to determine the variables that impact positively on business growth. In addition to demand factors, it was established that smaller and younger businesses are the ones that grow faster. A successful business also shows a positive correlation between business management skills and entrepreneurial conduct