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A Business Success Versus Failure Prediction Model for Small Businesses in Israel

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  • Shaike Marom
  • Robert N. Lussier

Abstract

With the great discrepancy in the literature as to which variables do in fact lead to success or failure of small businesses there is no theory; the Lussier 15 variable business success versus failure prediction model stands out in its accuracy that has been tested and validated already in three very different parts of the world. This study further contributes by testing the model in Israel with a sample of 205 small businesses - 101 failed and 104 successful. Results support the model¡¯s validity in Israel, reinforcing its global validity and moving toward a theory; while demonstrating similarity of SMEs in Israel to those in other economies.

Suggested Citation

  • Shaike Marom & Robert N. Lussier, 2014. "A Business Success Versus Failure Prediction Model for Small Businesses in Israel," Business and Economic Research, Macrothink Institute, vol. 4(2), pages 63-81, December.
    • Handle: RePEc:mth:ber888:v:4:y:2014:i:2:p:63-81
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    References listed on IDEAS

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    Cited by:

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    2. Jose L. Salmeron & Taha Mansouri & Mohammad Reza Sadeghi Moghaddam & Narjes Yousefi & Alireza Tayebi, 2023. "Startup’s critical failure factors dynamic modeling using FCM," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-18, December.
    3. León Mendoza, Juan Celestino & Valcárcel Pineda, Paolo, 2022. "Influencia de las características sociodemográficas personales en el éxito empresarial en Perú [Influence of personal sociodemographic characteristics on business success in Peru]," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 33(1), pages 326-352, June.
    4. Harashima, Taiji, 2021. "Economic Inequality and Heterogeneous Success Rates of Investment," MPRA Paper 110688, University Library of Munich, Germany.
    5. Vidimlić Selma, 2019. "Innovated Altman’s Model as a Predictor of Malfunctioning of Small and Medium-Sized Businesses in Bosnia and Herzegovina," Economic Themes, Sciendo, vol. 57(1), pages 21-33, March.
    6. Ashraf Elsafty & Dalia Abadir & Ashraf Shaarawy, 2020. "How Does the Entrepreneurs’ Financial, Human, Social and Psychological Capitals Impact Entrepreneur’S Success?," Business and Management Studies, Redfame publishing, vol. 6(3), pages 55-71, September.
    7. Jasińska-Biliczak Anna, 2023. "How to Ensure the Development of SMEs in Post-Pandemic Economy? A Start-ups Case Study," TalTech Journal of European Studies, Sciendo, vol. 13(1), pages 201-225, June.
    8. Marco Cantamessa & Valentina Gatteschi & Guido Perboli & Mariangela Rosano, 2018. "Startups’ Roads to Failure," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    9. Wafa Alwakid & Sebastian Aparicio & David Urbano, 2021. "The Influence of Green Entrepreneurship on Sustainable Development in Saudi Arabia: The Role of Formal Institutions," IJERPH, MDPI, vol. 18(10), pages 1-23, May.
    10. Daniela Santos da Silva & António Cerqueira & Elísio Brandão, 2016. "Portuguese Startups: a success prediction model," FEP Working Papers 581, Universidade do Porto, Faculdade de Economia do Porto.

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    More about this item

    Keywords

    Small businesses; Success factors; Entrepreneurship policy; Barriers to success;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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