The Application of Social Exchange Theory by Entrepreneurs Leading Small Businesses in Appalachia

Abstract

Entrepreneurs are the backbone of the U.S. economy and their small businesses represent the primary job source forAmerican workers. Research exists on small business at a national and an international scale but a limited amountof region specific information exists in the literature. The purpose of the research is to explore the relationshipbetween social capital and the failure or success of entrepreneurs who own businesses in Beckley, West Virginia, asmall Appalachian town. The theoretical framework for this study is social exchange theory. This qualitative studyused interpretive phenomenological analysis as the chosen research design because of the capability to query theirlived experiences. The purposive sampling method was used. The twelve participants were divided into two groupsconsisting 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. The answers provided by the participants addressed the problem of the high fail rate of small businesses in Appalachia. The findings of the study are importantbecause the application of social exchanges by entrepreneurs was shown to increase the longevity of small businesses.

Critical Review of Theories of Staff Turnover Intentions and their Implications to Staff Turnover in National Non-governmental Organizations in South Sudan

“…Using social exchange theory as a theoretical framework, [26] conducted a study to explore the relationship between social capital and the failure or success of entrepreneurs who own businesses in Beckley, West Virginia. The study found out that application of social exchanges by entrepreneurs increased the longevity of small businesses.…”