Entrepreneurial Qualities and Small Business Growth

Abstract

Purpose: In the competitive business world of today, in which flexibility, speed and adaptability are essential for survival and progress, small and medium sized enterprises (SMEs) including small business play all extremely important role in any country’s economic development. Recognized the important of small to economy and individual, many previous studies have been done on the issue regarding this topic. A number of authors are concerned with explaining the factors contributed to successful of firms. However, a vast of previous literature on small entrepreneurship and business management overlooked the various factors that may influence business growth. This paper aims to advance knowledge about the relationship between entrepreneurial qualities and small business -growth by tested using Structural Equation modeling with data collected from SME finance participants.
Findings: Previous works on small business area, the paper provide empirical evidence, where entrepreneurial qualities represent by various dimensions such as generic, technical and managerial skills in the direct relationship with small business growth. The findings indicate that only generic and managerial skills have positive relationship on small business growth, while technical skills have no relationship.
Limitations: The small sample size which was dominated by small business was the major limitation of the study.
Implications: This result can be used in the study on the impact of entrepreneurial qualities toward small business growth in the future.