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Reciprocated community support and small town - small business success

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  • MAUREEN KILKENNY
  • LAURA NALBARTE
  • TERRY BESSER

Abstract

This paper presents an empirical test of the significance of reciprocated community support, in contrast with traditional economic factors and unilateral support, in the success of small businesses in small towns. The central hypothesis is that entrepreneurs who make non-market contributions to their community and whose community supports them, are more likely to consider their businesses to be successful. Logistic regression is used to analyse survey data from over 800 small businesses in 30 small towns of the state of Iowa (USA). The authors found that the interaction effect of an entrepreneur's service to the community, reciprocated by community support of the business, is the single most significant determinant of business success among dozens of indicators and characteristics of the respondent, the business, and the small towns in the sample. In addition, it was found that business people who feel successful expect to expand. These findings are relevant to rural development. The expansion of existing businesses is an important component of regional job growth.

Suggested Citation

  • Maureen Kilkenny & Laura Nalbarte & Terry Besser, 1999. "Reciprocated community support and small town - small business success," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(3), pages 231-246, July.
    • Handle: RePEc:taf:entreg:v:11:y:1999:i:3:p:231-246
    DOI: 10.1080/089856299283182
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    8. M. Dakhli & D. De Clercq, 2003. "Human Capital, Social Capital and Innovation: A Multi-Country Study," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 03/211, Ghent University, Faculty of Economics and Business Administration.
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    19. Cristian E Villanueva & Adrianela Angeles & Luz Cecilia Revilla, 2018. "Tying Strong Ties In Informal Entrepreneurship: A Constraint Or An Entrepreneurial Driver?," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-19, March.
    20. Merja Lähdesmäki & Timo Suutari, 2012. "Keeping at Arm’s Length or Searching for Social Proximity? Corporate Social Responsibility as a Reciprocal Process Between Small Businesses and the Local Community," Journal of Business Ethics, Springer, vol. 108(4), pages 481-493, July.
    21. Philip T. Roundy, 2019. "“It takes a village” to support entrepreneurship: intersecting economic and community dynamics in small town entrepreneurial ecosystems," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1443-1475, December.
    22. Fakhimi, MohammadAmin & Miremadi, Iman, 2022. "The impact of technological and social capabilities on innovation performance: a technological catch-up perspective," Technology in Society, Elsevier, vol. 68(C).
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