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

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.

The Impact of Internal Factors on Small Business Success: A Case of Small Enterprises Under the Felda Scheme

“…It can also be characterised as a firm's ability to create acceptable outcomes and actions (Van Praag, 2003;Marom & Lussier, 2014). There is no universal acceptable definition of business success and a majority of management studies measure business success from the perspective of firms' performance (Van Auken & Werbel, 2006;Reijonen & Komppula, 2007;Wang & Wang, 2012).…”

Startups’ Roads to Failure

“…Finally, by using existing well-known repositories of narratives, we do not restrict the analysis to a given geographical area [13,21,22,25,27,31,[35][36][37][38][39]. In fact, as stated in [15,40] there is a need to test models in multiple countries to assess the robustness of the finding. A related second contribution is the preliminary statistics we derive from a first application of the SHELL methodology to a large database of 214 startups postmortem reports taken from the Autopsy.io website [41].…”

“…For instance, analysis conducted on entrepreneurs examined the influence of their gender and ethnic origin on the likelihood to succeed or fail [13,14]. The work in [15] conducted a logistic regression analysis based on 15 independent variables success versus failure prediction model in Israel, including the management experience, the education, and the age of the owner. The logistic regression analysis was also adopted in [16] to model the relationship between small business mortality rates and the aggregate levels of internal and external risks (e.g., bankruptcy related to interest rates, discontinuance of business or of ownership, etc.).…”

Mitigating the Challenges of Small and Medium Enterprises in Nigeria

“…Given that, it is necessary to elaborate on factors that contributed to the success of small businesses. The success of entrepreneurial activities can be measured with either financial or nonfinancial performances (Marom, S., & Lussier, R. N., 2014). Many researchers have considered the nonfinancial factors of business performance as the most effective when assessing small businesses (Dugguh, 2015).…”

“…The growth of the small business may be attributed to the willingness of the owners of providing an enabling platform, including the competency of managers to grow the firm through innovation (Marom, S., & Lussier, R. N., 2014). Marom and Lussier further stated growth factor is common to owners who establish the firm to grow the venture; not providing them with income for self-sustenance.…”