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An Empirical Study On The Relationship Between The State Of The Economy And Small Firm Characteristics: U.S. Case

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  • Halil Dincer KAYA

    (Northeastern State University, 3100 E. New Orleans St., Broken Arrow, Oklahoma, United States)

Abstract

This study examines the relation between small businesses‘ characteristics and their owners‘ views on the economy. The main question here is this: ?What kind of small firms are more optimistic on the economy?? To achieve this objective, this study uses the ?United States Small Business Friendliness Survey? by Kauffman Foundation and Thumptack.com. The nonparametric tests show that, in the states where business owners have a more positive view on the national economy, firms tend to be larger, but at the same time they tend to have more local sales when compared to the other states. This study also shows that, in these states, firms‘ age and industry (except for ?Business? industry) are not significantly different from firms in other states. On the other hand, the nonparametric tests for ?state economy? show that, in the states where business owners have more a positive view on the state economy, firms are smaller, their operational area is smaller and they have more local sales when compared to the other states. This study also shows that, in the states where business owners have a more positive view on the state economy, while firms‘ age is not significantly different from firms in other states, three firm industry classifications are significantly different from firms in other states. The study concludes that the state economy and the national economy have differing effects on small businesses.

Suggested Citation

  • Halil Dincer KAYA, 2018. "An Empirical Study On The Relationship Between The State Of The Economy And Small Firm Characteristics: U.S. Case," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 10(4), pages 33-45, December.
    • Handle: RePEc:rom:mrpase:v:10:y:2018:i:4:p:33-45
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    References listed on IDEAS

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    3. Robert W. Fairlie, 2013. "Entrepreneurship, Economic Conditions, and the Great Recession," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(2), pages 207-231, June.
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    5. Jürgen Brünjes & Javier Revilla Diez, 2013. "‘Recession push’ and ‘prosperity pull’ entrepreneurship in a rural developing context," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 25(3-4), pages 251-271, April.
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    Cited by:

    1. Wadim STRIELKOWSKI & Svetlana KALYUGINA & Oxana MUKHORYANOVA, 2019. "Managing Human Potential And Youth Social Entrepreneurship In Peripheral Regions," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 11(3), pages 41-51, September.

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