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Reciprocated Community Support and Small Town-Small Business Success

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  • Kilkenny, Maureen
  • Nalbarte, Laura
  • Besser, Terry

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.
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Suggested Citation

  • Kilkenny, Maureen & Nalbarte, Laura & Besser, Terry, 1999. "Reciprocated Community Support and Small Town-Small Business Success," Staff General Research Papers Archive 1643, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:1643
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    1. Anil Rupasingha & Stephan J. Goetz & David Freshwater, 2002. "Social and institutional factors as determinants of economic growth: Evidence from the United States counties," Review of Economic Design, Springer;Society for Economic Design, vol. 81(2), pages 139-155, April.
    2. Akande, Emmanuel, 2010. "Framework for Human Capital Development in Nigeria: A Public-Private Partnership Approach," MPRA Paper 58173, University Library of Munich, Germany.
    3. Mrdjan Milićev Mladjan & Dušan Zvonkov Marković, 2021. "Generational Responsibility in Consumption as a Response to Global Economic Crises," Sustainability, MDPI, vol. 13(6), pages 1-26, March.
    4. Alexander Tatarko, 2012. "Are Individual Value Orientations Related to Socio-Psychological Capital? A Comparative Analysis Data from Three Ethnic Groups in Russia," HSE Working papers WP BRP 03/PSY/2012, National Research University Higher School of Economics.
    5. Michele Hoyman & Jamie McCall & Laurie Paarlberg & John Brennan, 2016. "Considering the Role of Social Capital for Economic Development Outcomes in U.S. Counties," Economic Development Quarterly, , vol. 30(4), pages 342-357, November.
    6. Georgeanne M. Artz & Younjun Kim & Peter F. Orazem & Peter J. Han, 2021. "Which Small Towns Attract Start‐Ups and Why? Twenty Years of Evidence from Iowa," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 702-720, March.
    7. Mark Ferguson & Kamar Ali & M. Rose Olfert & Mark Partridge, 2007. "Voting with Their Feet: Jobs versus Amenities," Growth and Change, Wiley Blackwell, vol. 38(1), pages 77-110, March.
    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.
    9. Laura Diaconu, 2011. "The Role of Innovation for the Economic Growth and Development of the States. The Case of the Emerging Countries," ERSA conference papers ersa11p391, European Regional Science Association.
    10. Hallak, Rob & Brown, Graham & Lindsay, Noel J., 2012. "The Place Identity – Performance relationship among tourism entrepreneurs: A structural equation modelling analysis," Tourism Management, Elsevier, vol. 33(1), pages 143-154.
    11. Westlund, Hans & Forsberg, Anette & Höckertin, Chatrine, 2002. "Social capital and local development in Swedish rural districts," ERSA conference papers ersa02p245, European Regional Science Association.
    12. Madhuri Mahato & Julie Vardhan, 2023. "Does Self-esteem and Social Identity Play a Role in Keeping the Family Occupation Alive?," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(3), pages 399-417, August.
    13. Erzurumlu, S. Sinan & Erzurumlu, Yaman O. & Yoon, YongKi, 2022. "National innovation systems and dynamic impact of institutional structures on national innovation capability: A configurational approach with the OKID method," Technovation, Elsevier, vol. 114(C).
    14. Nguyen Thi Anh, 2013. "One Village One Product (OVOP) in Japan to One Tambon One Product (OTOP) in Thailand: Lessons for Grass Root Development in Developing Countries," Journal of Social and Development Sciences, AMH International, vol. 4(12), pages 529-537.
    15. Bryl Łukasz, 2020. "Long-term Development of National Human Capital. Evidence from China and Poland," Journal of Intercultural Management, Sciendo, vol. 12(3), pages 30-66, September.
    16. Gift Dafuleya, 2014. "Social Value Creation and Institution-Entrepreneurial Dynamics in a Three Sector Economy," Journal of Economics and Behavioral Studies, AMH International, vol. 6(10), pages 795-809.
    17. Marko Reimer & Sebastiaan Doorn & Mariano L. M. Heyden, 2018. "Unpacking Functional Experience Complementarities in Senior Leaders’ Influences on CSR Strategy: A CEO–Top Management Team Approach," Journal of Business Ethics, Springer, vol. 151(4), pages 977-995, September.
    18. Shahjahan Sarfraz Raja & Valliappan Raju & Muhammad Husnain & Sania Sarfraz & Fozia Malik & Shahnawaz Sarfraz Raja, 2022. "Framework for Sustainable Rural Development through Entrepreneurial Initiatives in Emerging Economies," Sustainability, MDPI, vol. 14(19), pages 1-32, September.
    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).
    23. Suzanne Campin & Jo Barraket & Belinda Luke, 2013. "micro-Business Community Responsibility in Australia: Approaches, Motivations and Barriers," Journal of Business Ethics, Springer, vol. 115(3), pages 489-513, July.

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