Management and Leadership Skills that Affect Small Business Survival

Have you ever wondered why many of the over 28 million small businesses in operation in the United States do not survive past the first five years? As a fellow small business owner (and professor of business administration) trying to compete in the global economy, I became interested in understanding the actual reasons that cause many small businesses to fail. This question consumed me to the point that I decided to go back to school and earn a doctorate degree in business to hopefully understand the answer. Through my studies, I began to suspect that the main cause of failure for small businesses was the lack of understanding between the roles of management and leadership. I soon became very frustrated when I could not find research studies that showed the direct link between the necessary skills needed for small business survival. With little information or resources to rely on, I knew that if I wanted the answers I would have to conduct my own research study to gain the necessary insight into this ongoing problem that has plagued over 50% of today’s workforce. For two years, I studied small businesses in the global economy. After completing a comprehensive study, I was able to finally document actual information that proved the management and leadership skills that affect small business survival. Once I understood the effects of management and leadership skills had on small businesses, I wanted to apply my research to helping small business owners improve their business. I thought about the struggles and how I could not find any books or resources that provided a ‘one stop shop’ with detailed information on how to succeed in small business management and leadership. All I had available was a lot of business books and models that were created for large corporations and had to modify bits and pieces from several resources to hopefully fit my needs. This process was very time consuming and did not give me a good sense of a how everything fit together to help me succeed. In fact, everything I found I went through starting my own small business and wanted to create a resource guide that provided a quick resource for all small businesses. Since there are many different types of small businesses in many different markets, it is easy to understand why there were no specific resources. A resource that looked at the primary basic functions and demonstrated the causal links between management and leadership skills had to be created that could apply to small businesses in the trade sector of the market needed to be created. ‘Management and Leadership Skills That Affect Small Business Survival’ was the outcome.