Why do some businesses succeed and others end up bankrupt? There is great discrepancy in the literature as to which variables do in fact lead to success, thus, there currently is no theory. To move the field in that direction, this study tests the Lussier 15-variable business success versus failure prediction model in Chile with a sample of 234 small businesses-131 failed and 103 successful. Results support the model's validity in Chile. Thus, the model has been tested with significant results in three very different parts of the world; first in United States (North America), then in Croatia (Central Eastern Europe), and now in Chile (South America). The model will reliably predict a group of businesses as failed or successful more accurately than random guessing in all three countries over 96 percent of the time.

There has been limited prior research into generational differences among family businesses. This study compared first‐, second‐, and third‐generation family firms. Contrary to much of the current literature, only two significant differences were found when testing 11 hypotheses. As hypothesized, first‐generation family businesses do less succession planning than second‐ and third‐generation family firms, and there are no differences between first‐, second‐, and third‐ generation firms with regard to the influence of the firm's founder. Also, first‐generation firms had the highest use of equity versus debt financing. Although not tested as a hypothesis, demographic analysis indicated fewer first‐generation firms using the corporation form of ownership. Analysis of covariance indicated no spurious relationships existing in the hypotheses.

In this study, the Lussier (1995) success prediction model, originally developed using U.S. data, is tested using a sample of firms from Central Eastern Europe. The same factors found to be predictors of success in the U.S. (staffing, education level, use of professional advice, and planning) were also predictors of success and failure in Central Eastern Europe. All these factors have to do with the firm's human resources. These findings should lead to reconsideration of preconceptions existing in Central Eastern Europe regarding small business, as in many of its countries it is commonly believed that human resources have little to do with business success and failure.

Purpose – The aim of this paper is to examine the factors that lead to either success or failure of small firms in Pakistan. Design/methodology/approach – This study methodology is a survey research applying the Lussier Model of business success and failure with a sample of 143 small businesses to better understand the reasons of their success or failure using logistic regression statistical analysis. Findings – Results indicate that business planning, proper employee staffing, adequate capital inflows and partnerships are important for the viability and success of small businesses in Pakistan. Practical implications – Results provide further support for the validity of the Lussier Model in Pakistan and globally. Thus, small business owner/managers can use the model to help improve their chances of success and to avoid failure. Other stakeholders, including parties that assist and advise them, investors and institutions who/that provide them with capital and other resources and communities and society by and large, can also benefit from this model. The results and discussion also provide information to assist public policymakers in developing programs to support small business development. Originality/value – This is the first study on success and failure of small businesses in Pakistan. With the great discrepancy in the literature as to which variables, in fact, distinguish success from failure, there is no accepted theory. Thus, this study contributes to the literature to better understand why some businesses succeed and others fail, and it supports the use of the Lussier Model globally.

Although 50 percent of Fortune 1000 companies currently use a balanced scorecard (BSC), few small businesses are using a BSC. A review of the literature finds no BSC papers in leading small business/entrepreneurship journals. This article begins with a discussion of the BSC and why a small business should use it. Three small to medium-sized enterprise (SME) case studies are presented, with a copy of their BSC, to illustrate how Hyde Park Electronics, Futura Industries, and Southern Gardens Citrus use a BSC to set strategy and align operations to achieve breakthrough results. Implications are, that like large businesses, SMEs can also benefit from using a BSC. Entrepreneurs of SMEs can use the case studies to develop their own BSC to improve performance. Implications for practice and research are discussed.

The strategic decision-making of male and female small businesspersons and entrepreneurs has been investigated in prior research, but the findings are mixed. This article reports on a gender comparison testing of the Entrepreneurial Strategy Matrix, a situational model which suggests strategies for new and ongoing ventures in response to the identification of different levels of venture innovation and risk. A national sample of 184 small firm owners (59 percent male/41 percent female) was tested. Results indicate that there are no significant gender differences in venture innovation/risk situation or in strategies chosen by business owners. Male respondents did indicate a higher overall satisfaction with venture performance than did females.

The purpose of this study was to investigate, in a multi-country context, the inclusion of family-member managers and non-family-member managers in family businesses, and the relationship of this variable to certain management activities, styles and characteristics. A large sample (N = 593) of family businesses was generated from six countries (Croatia, Egypt, France, India, Kuwait and the United States), countries with significant differences in cultures, economies, levels of entrepreneurial activity, and family business demographics. Correlation and then Regression results indicate that, as the percentage of non-family-managers in the management team increases, there is an increase in the use of outside assistance, the use of sophisticated financial management, and the consideration of going public; but a decrease in family member conflict, in the original founder's influence, and in the formulation of succession plans. Implications of these findings, for practitioners, consultants and researchers, are presented.

The purpose of this study was to use the Lussier (1995) generic success versus failure (S/F) prediction model to develop a real estate industry specific model (S/F = f[industry experience, age, advisors, planning, capital]). Using logistic regression analysis, the Lussier model (p = .028) and the real estate agency model (p = .001) are significant predictors of business success and failure. The Lussier model accurately predicted 84 percent of the surveyed successful and failed matched pairs agencies as being successful or failed and the real estate model predicted 74 percent. The Lussier model explained 68 percent of the variance of contributing factors to success versus failure and the real estate model explained 56 percent. Implications are discussed.