Business failure factors in Iranian SMEs: Do successful and unsuccessful entrepreneurs have different viewpoints?

Arasti, Zahra; Zandi, Fahimeh; Bahmani, Neda

doi:10.1186/s40497-014-0010-7

Cited by 57 publications

(61 citation statements)

References 33 publications

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“…Nevertheless, the SME performance is not as enlightening as expected especially in terms of the start-up success. According to Arasti, Zandi, and Bahmani (2014), the failure rate among start-ups within the first five years is more than 50 percent. The business failure corresponds to the situation where the business is financially unviable or the assets of the firm are not worth further harvesting (Jenkins & McKelvie, 2016).…”

Section: Introductionmentioning

confidence: 99%

Analyzing entrepreneurial orientation impact on start-up success with support service as moderator: A PLS-SEM approach

Kee¹,

Rahman²

2017

BEH

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This paper examines the Start-up Success of Spin-off and Symbiosis Company (SSC) using Entrepreneurial Orientation (EO) and Support Service. Notwithstanding the extensive study on start-up firms and Support Service, there is a missing link on how EO impacts Start-up Success, particularly in Malaysia case study. To address such limitation, this paper proposed that Start-up Success of SSC will be improved by EO and Support Service. A total of 120 SSC in Peninsular Malaysia were employed as respondents and data were analyzed using PLS-SEM analysis. The empirical results showed that EO is positively related to Start-up Success and intensify the potentials of Support Service as a moderator. As most of the related literature highlights the importance of Support Service, this study brings new perspectives on how EO is also significant in improving the Start-up Success. In addition, the critical discussion provided in this paper is expected to contribute to the body of knowledge on entrepreneurship studies and act as a future reference on the EO, support service, and SSC. JEL Classifications: L26, M13

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Section: Introductionmentioning

confidence: 99%

Analyzing entrepreneurial orientation impact on start-up success with support service as moderator: A PLS-SEM approach

Kee¹,

Rahman²

2017

BEH

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“…Two main mortality factors appears in the literature: the first one focused on internal and external aspects and the second related to the small business ownermanager, the SME itself and environmental aspects (Arasti et al 2014;Bruderl et al 1992;Bumgardner et al 2011;Carter and Van Auken 2006;Franco-Ángel and Pulido 2010;Garcia-Posada and Mora-Sanguinetti 2013;Machado and Espinha 2005Rogoff et al 2004;Santini et al 2015;Sten, Sten 1998;Zacharakis et al 1999). By similarities among the factors the classifying can be done according to three categories: (i.)…”

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confidence: 99%

“…The term 'failure' covers several meanings as death, exit, bankruptcy, foreclosure, insolvency and interruption (Arasti et al 2014;Everett and Watson 1998;Sten 1998). Different meanings makes it harder to codify reasons that leads SME to failure; much often this reasons relies on the meaning used by researchers (Everett and Watson 1998;Watson and Everett 1996).…”

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confidence: 99%

Identifying SME mortality factors in the life cycle stages: an empirical approach of relevant factors for small business owner-managers in Brazil

et al. 2017

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Although small and medium-sized enterprises (SME) are an important part of worldwide economy, frequently, researches on SME mortality factors ignores their characteristics. This paper discusses the relation between the SME mortality factors and the small business owner-manager, based on the life cycle stage as an essential part for a better understanding of their closure moment. The research paper was designed in two main complementary phases: (i.) a systematic review focused on failure subject, in order to capture the state of the art of the theme added by the conceptual background of classical SME studies and (ii.) a multiple case study of seven Brazilian SME with a qualitative, descriptive and empirical approach. The results show that small business owner-managers failure business did not use correctly or gave required attention to the mortality factors such as full time dedication, exercising operational activities and managerial roles, discipline, purchase abilities, negotiation, finance and family motivation in keeping up the business. The main contribution for entrepreneurship studies is the indication of an existing relation between mortality factors and the life cycle stages of SME, which evidences the changing importance of the mortality factors throughout the life cycle stages, including closure. The practical results of this paper offers new insights into the relevant SME mortality factors, opening a number of potential avenues for future studies focused on SME, mortality factors and the small business owner-manager.

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“…We used three criteria to select our sample: First, we targeted only the founders of small-sized businesses. The Iranian Ministry of Industries and Commerce defines small businesses as those firms that have less than 50 employees [64]. Second, the firms should be a privately held organizations and be independent firms (i.e., not subsidiaries) [65].…”

Section: Settingmentioning

confidence: 99%

Does Thinking Style Make a Difference in Environmental Perception and Orientation? Evidence from Entrepreneurs in Post-Sanction Iran

2018

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Styles of thinking set different paths for an entrepreneur's perception and strategic action. In order to understand the environmental consequences of a thinking style, we investigated the relations between entrepreneurs' linear and nonlinear styles of thinking with their perception of environmental uncertainty in their businesses. Furthermore, we tested the effect of the entrepreneurs' linear and nonlinear style of thinking on their newly established firms' orientation towards preserving the surrounding internal and external environment. Entrepreneurs with linear or rational thinking styles prefer more tangible data, information, facts, and analytical tools, and entrepreneurs with nonlinear or non-rational thinking styles rely more on internal feelings, impressions, imagination, creativity, and sensations when making important organizational decisions. By using cross-sectional survey data from 144 entrepreneurs in post-sanction Iran (2016-2017), we found that entrepreneurs with a linear style of thinking, in comparison to entrepreneurs with a nonlinear style of thinking, perceive a higher level of environmental state, effect, and response uncertainty in their business context. Furthermore, our survey results reveal that newly established firms by entrepreneurs with nonlinear styles of thinking have a more external environmental orientation, while newly established firms by entrepreneurs with a linear style of thinking have a more internal environmental orientation. Recognizing this contingency advances our understanding of how entrepreneurs perceive and enact their environments.

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Business failure factors in Iranian SMEs: Do successful and unsuccessful entrepreneurs have different viewpoints?

Cited by 57 publications

References 33 publications

Analyzing entrepreneurial orientation impact on start-up success with support service as moderator: A PLS-SEM approach

Analyzing entrepreneurial orientation impact on start-up success with support service as moderator: A PLS-SEM approach

Identifying SME mortality factors in the life cycle stages: an empirical approach of relevant factors for small business owner-managers in Brazil

Does Thinking Style Make a Difference in Environmental Perception and Orientation? Evidence from Entrepreneurs in Post-Sanction Iran

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