IDEAS home Printed from https://ideas.repec.org/p/osf/osfxxx/8xmt6_v1.html
   My bibliography  Save this paper

Exploring the Success and Failure of Small Business in Beckley, West Virginia

Author

Listed:
  • Stone, Billy

    (West Virginia University at Parkersburg)

Abstract

Small businesses are the backbone of the U.S. economy and represent the primary job source for American workers. Research exists on small business at a national and an international scale but a limited amount of region-specific information exists in the literature. The problem in this research was that owner-operated small businesses have a high fail rate, with less than half surviving more than five years and these survival rates have persisted in a relatively stable fashion for at least a decade, with policies appearing unable to increase the longevity of new businesses. The purpose of the research is to explore the relationship between social capital and the failure or success of twelve owner-operated businesses in Beckley, West Virginia. The theoretical framework for this study is social exchange theory. This qualitative study used interpretive phenomenological analysis as the chosen research design because of the capability to query their lived experiences. The purposive sampling method was used. The twelve participants were divided into two groups consisting of failed businesses and successful businesses. The successful business has existed for more than five years. The failed business opened within the past five years but has closed. Utilizing the modified van Kaam method, ATLAS.ti qualitative analysis software, and a manual review of the individual interviews the researcher identified three emergent themes circumventing the particular phenomenon of small business ownership in Beckley, WV. The answers provided by the participants addressed the problem of the high fail rate of small businesses. The findings of the study are important because the application of social exchanges was shown to increase the longevity of small businesses in Beckley, WV.

Suggested Citation

  • Stone, Billy, 2017. "Exploring the Success and Failure of Small Business in Beckley, West Virginia," OSF Preprints 8xmt6_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:8xmt6_v1
    DOI: 10.31219/osf.io/8xmt6_v1
    as

    Download full text from publisher

    File URL: https://osf.io/download/63caea3c1e59c501bde7c85d/
    Download Restriction: no
    File URL: https://libkey.io/10.31219/osf.io/8xmt6_v1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Samuel Aryee & Fred O. Walumbwa & Reuben Mondejar & Chris W. L. Chu, 2015. "Accounting for the Influence of Overall Justice on Job Performance: Integrating Self-Determination and Social Exchange Theories," Journal of Management Studies, Wiley Blackwell, vol. 52(2), pages 231-252, March.
    2. Marcus T. Wolfe & Dean A. Shepherd, 2015. "“Bouncing Back†from a Loss: Entrepreneurial Orientation, Emotions, and Failure Narratives," Entrepreneurship Theory and Practice, , vol. 39(3), pages 675-700, May.
    3. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    4. David Neumark & Brandon Wall & Junfu Zhang, 2011. "Do Small Businesses Create More Jobs? New Evidence for the United States from the National Establishment Time Series," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 16-29, August.
    5. Lawrence M. Lekhanya & Roger B. Mason, 2014. "Selected Key External Factors Influencing the Success of Rural Small and Medium Enterprises in South Africa," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 331-348.
    6. Densil A. Williams, 2014. "RESOURCES AND FAILURE OF SMEs: ANOTHER LOOK," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 19(01), pages 1-15.
    7. Vila, José E. & Fornoni, Mariel & Palacios, Daniel, 2013. "Multidimensional social capital in new ventures," Nülan. Deposited Documents 1882, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    8. Pertti Järvinen, 2007. "Action Research is Similar to Design Science," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(1), pages 37-54, February.
    9. repec:hal:journl:hal-04850409 is not listed on IDEAS
    10. Erik Hurst & Benjamin Wild Pugsley, 2011. "What Do Small Businesses Do?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(2 (Fall)), pages 73-142.
    11. Darek Klonowski, 2010. "The effectiveness of government-sponsored programmes in supporting the SME sector in Poland," Post-Communist Economies, Taylor & Francis Journals, vol. 22(2), pages 229-245.
    12. Zijad Dzafic & Amra Babajic, 2016. "The Role Of The Government In Entrepreneurship Development: Evidence From Bosnia And Herzegovina," Economic Review: Journal of Economics and Business, University of Tuzla, Faculty of Economics, vol. 14(1), pages 68-79, May.
    13. Yasuhiro Yamakawa & Melissa Cardon, 2015. "Causal ascriptions and perceived learning from entrepreneurial failure," Small Business Economics, Springer, vol. 44(4), pages 797-820, April.
    14. Jose Enrique Vila & Mariel Fornoni & Daniel Palacios, 2013. "Multidimensional social capital in new ventures," The Service Industries Journal, Taylor & Francis Journals, vol. 33(9-10), pages 820-832, July.
    15. Jeffrey M. Pollack & Anthony E. Coy & Jeffrey D. Green & Jody L. Davis, 2015. "Satisfaction, Investment, and Alternatives Predict Entrepreneurs’ Networking Group Commitment and Subsequent Revenue Generation," Entrepreneurship Theory and Practice, , vol. 39(4), pages 817-837, July.
    16. Edward I. Altman & Gabriele Sabato, 2013. "MODELING CREDIT RISK FOR SMEs: EVIDENCE FROM THE US MARKET," World Scientific Book Chapters, in: Oliviero Roggi & Edward I Altman (ed.), Managing and Measuring Risk Emerging Global Standards and Regulations After the Financial Crisis, chapter 9, pages 251-279, World Scientific Publishing Co. Pte. Ltd..
    17. Daisy Kee Mui Hung & Azura Abdullah Effendi & Lilis Suriety Abdul Talib & Noor Afiza Binti Abdul Rani, 2011. "A PRELIMINARY STUDY OF TOP SMEs IN MALAYSIA: KEY SUCCESS FACTOR VS GOVERNMENT SUPPORT PROGRAM," Journal of Global Business and Economics, Global Research Agency, vol. 2(1), pages 48-58, January.
    18. Eric Gedajlovic & Benson Honig & Curt B. Moore & G. Tyge Payne & Mike Wright, 2013. "Social Capital and Entrepreneurship: A Schema and Research Agenda," Entrepreneurship Theory and Practice, , vol. 37(3), pages 455-478, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stone, Billy, 2017. "Exploring the Success and Failure of Small Business in Beckley, West Virginia," OSF Preprints 8xmt6, Center for Open Science.
    2. Valérie François & Christophe Lafaye & Matthieu Belarouci, 2021. "The role of social capital in the growth of innovative nascent firms: the moderating effect of incubators," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 25(4/5), pages 326-345.
    3. Matthieu Belarouci & Valérie François & Christophe Lafaye, 2019. "The role of social capital in the growth of young innovative firms: Incubated versus non-incubated [El papel del capital social en el crecimiento de las jóvenes empresas innovadoras: diferencias en," Post-Print hal-02509204, HAL.
    4. William Gale & Samuel Brown, 2013. "Small Business, Innovation, and Tax Policy: A Review," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(4), pages 871-892, December.
    5. Andrew T. Young & Matthew J. Higgins & Donald J. Lacombe & Briana Sell, 2014. "The Direct and Indirect Effects of Small Business Administration Lending on Growth: Evidence from U.S. County-Level Data," NBER Working Papers 20543, National Bureau of Economic Research, Inc.
    6. Michael Anyadike-Danes & Carl-Magnus Bjuggren & Sandra Gottschalk & Werner Hölzl & Dan Johansson & Mika Maliranta & Anja Myrann, 2015. "An international cohort comparison of size effects on job growth," Small Business Economics, Springer, vol. 44(4), pages 821-844, April.
    7. Matthew J. Higgins & Donald J. Lacombe & Briana S. Stenard & Andrew T. Young, 2021. "Evaluating the effects of Small Business Administration lending on growth," Small Business Economics, Springer, vol. 57(1), pages 23-45, June.
    8. Daphne Chen & Shi Qi, 2016. "The Importance Of Legal Form Of Organization On Small Corporation External Financing," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1607-1620, July.
    9. J. David Brown & John S. Earle & Mee Jung Kim & Kyung Min Lee, 2017. "High-Growth Entrepreneurship," Working Papers 17-53, Center for Economic Studies, U.S. Census Bureau.
    10. Huynh Thi Minh Chau & Nguyen Manh Tuan & Hang Le Cam Phuong, 2017. "Knowledge sharing in virtual teams: A research in information technology companies in Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 7(1), pages 75-88.
    11. Mina, Andrea & Santoleri, Pietro, 2021. "The effect of the Great Recession on the employment growth of young vs. small firms in the Eurozone," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 184-194.
    12. Duygan-Bump, Burcu & Levkov, Alexey & Montoriol-Garriga, Judit, 2015. "Financing constraints and unemployment: Evidence from the Great Recession," Journal of Monetary Economics, Elsevier, vol. 75(C), pages 89-105.
    13. Brown, J. David & Denes, Matthew & Duchin, Ran & Hackney, John, 2024. "How Big Is Small? The Economic Effects of Access to Small Business Subsidies," IZA Discussion Papers 17092, Institute of Labor Economics (IZA).
    14. Bergner, Sören Martin & Bräutigam, Rainer & Evers, Maria Theresia & Spengel, Christoph, 2017. "The use of SME tax incentives in the European Union," ZEW Discussion Papers 17-006, ZEW - Leibniz Centre for European Economic Research.
    15. Adam Seth Litwin & Phillip H. Phan, 2013. "Quality over Quantity: Reexamining the Link between Entrepreneurship and Job Creation," ILR Review, Cornell University, ILR School, vol. 66(4), pages 833-873, July.
    16. Schneck, Stefan, 2018. "Times are a changin'? The emergence of new firms and rank persistence," Working Papers 01/18, Institut für Mittelstandsforschung (IfM) Bonn.
    17. J David Brown & John S Earle & Mee Jung Kim & Kyung Min Lee, 2019. "Start-ups, job creation, and founder characteristics," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(6), pages 1637-1672.
    18. Miriam Bruhn & Dean Karlan & Antoinette Schoar, 2018. "The Impact of Consulting Services on Small and Medium Enterprises: Evidence from a Randomized Trial in Mexico," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 635-687.
    19. Luca David Opromolla & Michele Dell'Era, 2018. "A General Equilibrium Theory of Occupational Choice under Optimistic Beliefs about Entrepreneurial Ability," Working Papers w201822, Banco de Portugal, Economics and Research Department.
    20. Anmol Bhandari & Ellen R. McGrattan, 2017. "Sweat Equity in U.S. Private Business," Staff Report 560, Federal Reserve Bank of Minneapolis.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:osfxxx:8xmt6_v1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://osf.io/preprints/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.