Small Businesses Struggle And Fail The Pit Falls - 27500 Words

Why Small Businesses Struggle And Fail The Pit Falls Of Small Businesses (Dissertation Sample) Content: COLLEGE OF BUSINESS This is to certify that the dissertation by has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Abstract Why small businesses struggle and fail The pit falls of small businesses in Denver Colorado by Dissertation Presented in Partial Fulfillment Of the Requirements for the Degree Professional Doctorate of Business Administration in Emphasis Abstract Small businesses have proved to be vital to the American economy because they contribute 50% of the all-inclusive jobs and 99% of the entire firms operating in the US. This descriptive-multiunit case study aimed at exploring the pitfalls or challenges facing small business owners, which make them not to go beyond five years after commencement in Denver, Colorado. The conceptual structure in this research was founded on general systems theory. Information was gleaned via semi-structured interviews together with company documents. Additionally, Member checking was done to strengthen trustworthiness and credibility. Founded on methodological triangulation on the information collected, three themes were identified including business seasonality, dedication and passion from business owners, and contracting the best employees. Outcomes of the research can be utilized to influence social change by enhancing insights and challenges that hinder efficient operation of small businesses in Color ado. Data obtained from the study can be tailored to foster business prosperity, communities, families, and the economy. Why small businesses struggle and fail The pit falls of small businesses in Denver, Colorado by Dissertation Presented in Partial Fulfillment Of the Requirements for the Degree Professional Doctorate of Business Administration in Emphasis Dedication I commit my dedication to my lovely family due to care, love, patience, encouragement, and backing through the doctoral journey. Thank you. Acknowledgement I humbly acknowledge all the persons that contributed to the accomplishment of my doctoral thesis. I thank God for being with me and giving me the energies to pursue this course. May you continue to guide me. I also thank all the friends, family, and relatives that stood with me throughout the education journey. God bless. Table of Contents No table of contents entries found. I have already ssigned entries but the update is not responding. Dear customer, it seems that the template for the order was preset to a certain format that is restricting the update of table of contents. I have tried to fix it in vain. I am calling upon your help to consult with the professor and find out how it will be fixed or if you can help me fix it. Sorry for inconvenience. Thank you. List of Figures Table 1: Correspondents educational background. 77 Table 2: Participants Responses about prior background. 77 Table 3: Failure to focus on the niche. 79 Table of Figures Figure 1: Systems Theory. 29 Chapter 1: Introduction Chapter one of this dissertation encompasses several sections comprising the study background, the problem of the statement, and the study purpose. Further, there is an insightful elucidation of the researchs nature, the research significance, questions leading the research, and the short preview of current works. Moreover, there are explanations about the characteristics of the research area and the problem, the impact of the research to the current scholarly works and related or similar studies. Besides, the section identifies the gaps in the literature and draws on Vons systems theory to develop a conceptual framework. Similarly, the section presents the assumptions, delimitations, and limitations to the study together with the explanations of the core terms utilized in the dissertation. It then closes by an in-depth conclusion cognizant of the depicted subsections. Background of the Problem Small ventures are essential to a healthy economy in the US because they represent approximately 99% of the total firms and 50% of the entire jobs created in America (Labedz Berry, 2011). Accordingly, at least two-thirds of all the novel firms in American strive to survive for the first two years while one half of them strive to survive up to 4 years (Monahan, Shah, Mattare, 2011). Chow and Dunkelberg (2011) asserted that small enterprise leaders often yield about half of the total private GDP and they provide employment to more than half of the total employees. The focus of this dissertation was to investigate why small businesses struggle and fail; in essence, exploring the pitfalls of the small businesses. In the year 2011, about 28.2 million leaders from the small businesses employed approximately 99% of the total employees in America (SBA, 2014). Scholars at the SBA described a small venture as any enterprise with less than five hundred workers (SBA, 2014). Cronin-Gilmore (2012), further, claimed that small business leaders are the core factor in driving and sustaining the technological milieu of the global marketplace that result in more than 1/3 of the novel patents that are issued. Moreover, small businesses have been found to be the backbone of the fiscal conditions within the country, especially the role the small business leadership plays cognizant of the residents health (Eveleth, Chung, Eveleth, ONeill, 2011). What is more, in reference to high rates of failures depicted, researchers tended to ignore small businesses (Eveleth et al., 2011). In the contemporary context, small corporate owners have emerged to be the core contributors to the American economy with a contribution of roughly 39 percent of the total gross domestic product (Ho Barnes, 2013). Owners of the small businesses create at least 2 out of 3 novel jobs and often instigate innovations at a rate of 2.5 times more per employees as opposed to the large business firms. However, small businesses fail more at a rate equal to 75 percent within the 5 initial years of establishment (Plehn-Dujowich, 2010). Further, most of the businesses established as dealerships are often medium and small-sized enterprises (Fraser, Tseng, and Hans-Henrik, 2013). The accentuated failure rate leads to a collapse of the sector that deals with small businesses, which often has a profound outcome on the economy of the nation, especially the employment rates (Plehn-Dujowich, 2010). Additionally, the increased competition in the extant globalized world affects international and domesti c firms, large and small firms, and fosters the competition making it unavoidable for majority of the firms (Chen Chen, 2013). Scholars and academicians have depicted that large business enterprises experience about 100 percent survival rate as compared to small businesses that experience a low survival rate (Chen Chen, 2013). Owners of the small businesses experience a myriad of challenges to foster the economy (Geho and Frakes, 2013). Evidentially, lack of training, support, and education that are needed for identification and utilization of business skills add to the incompetence and failure of small business. Fundamentally, impacting the improvement of the future that regards to the small businesses require appropriate skills and business practices including the possibility of determining strategies. Indeed, the owners of the small businesses need these strategies for expertise, development, proceedings, and techniques (Quazi, Bell, Bryant, 2010) Problem Statement As indicated by Yallapragada and Bhuiyan (2011) small businesses claim at least 39% of Americas GDP and create roughly 2 out of the possible 3 jobs in the evidenced economy. Nonetheless, the SBA (2014) suggested that 1/3 of novel businesses do survive more than 10 years and only about half survive more than 5 years. Similarly, every year, the number of novel businesses that start is almost equal to that number of businesses that close down due to the notion of failure (Yallapragada Bhuiyan, 2011). In perspective, the fundamental problem that the new entrants face is the way they embark on business initiative without full preparations. As such, it is proper to say that a large portion of small business owners have inadequate strategies that are aimed at achieving profitability. For example, in the year 2012, roughly 160 small business owners that deal with auto dealership in the US failed and experienced a subsequent closure of their businesses. Additionally, at least 200,000 workers in the auto dealership jobs lost their employment when their industry leaders failed and then filed for bankruptcy states (Williams, 2012). In this case, about 31.6% of the auto dealer owners operate their business for up to 3 years while about 5.3% of the dealers go beyond 5 years (Suter Bwisa, 2013). Indeed, the generalized problem for the small individuals, in the case of auto dealership is that the business owners do not have t...