Relationship Between Bootstrap Financing, Number of Employees, and Small Business Success

Small business entrepreneurs face high failure rates, yet the success of local, state, and national economies relies on the success of small business. With a lack of capital commonly cited as a reason for failure, entrepreneurs must find ways to predict business survival. Grounded in pecking order a...

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Main Author: Schofield, Robin Marie
Format: Others
Language:en
Published: ScholarWorks 2015
Subjects:
Online Access:https://scholarworks.waldenu.edu/dissertations/471
https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=1470&context=dissertations
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spelling ndltd-waldenu.edu-oai-scholarworks.waldenu.edu-dissertations-14702019-10-30T01:16:56Z Relationship Between Bootstrap Financing, Number of Employees, and Small Business Success Schofield, Robin Marie Small business entrepreneurs face high failure rates, yet the success of local, state, and national economies relies on the success of small business. With a lack of capital commonly cited as a reason for failure, entrepreneurs must find ways to predict business survival. Grounded in pecking order and enactment theory, the purpose of this correlational study was to examine the efficacy of bootstrap financing and numbers of employees in predicting business survival, measured by the business age. The research question was answered by using a predictive correlational quantitative research method with a cross-sectional survey design. The central question was whether the amount of bootstrapping financing, measured by a bootstrapping survey, and numbers of employees significantly predicts firm success, measured by firm age in years. Study participants (n = 111) were owners of small businesses in the state of New Hampshire who had been in business for a minimum of 5 years. The results of the multiple linear regression analysis indicated that bootstrap use and number of employees did not significantly predict business survival. Results indicate support for the pecking order theory of financing with minimal evidence of entrepreneurs enacting their environment. The majority of entrepreneurs surveyed used at least one method of bootstrap finance to support the business. Bootstrapping methods with the highest rate of use were offering the same conditions of all customers, negotiating the best payment terms with suppliers, and buying used equipment over new equipment. The implications for positive social change include the potential to provide New Hampshire small business entrepreneurs with information for making informed financial decisions and creating financial models. 2015-01-01T08:00:00Z text application/pdf https://scholarworks.waldenu.edu/dissertations/471 https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=1470&context=dissertations Walden Dissertations and Doctoral Studies en ScholarWorks bootstrap enactment finance pecking order small business startup Business Finance and Financial Management
collection NDLTD
language en
format Others
sources NDLTD
topic bootstrap
enactment
finance
pecking order
small business
startup
Business
Finance and Financial Management
spellingShingle bootstrap
enactment
finance
pecking order
small business
startup
Business
Finance and Financial Management
Schofield, Robin Marie
Relationship Between Bootstrap Financing, Number of Employees, and Small Business Success
description Small business entrepreneurs face high failure rates, yet the success of local, state, and national economies relies on the success of small business. With a lack of capital commonly cited as a reason for failure, entrepreneurs must find ways to predict business survival. Grounded in pecking order and enactment theory, the purpose of this correlational study was to examine the efficacy of bootstrap financing and numbers of employees in predicting business survival, measured by the business age. The research question was answered by using a predictive correlational quantitative research method with a cross-sectional survey design. The central question was whether the amount of bootstrapping financing, measured by a bootstrapping survey, and numbers of employees significantly predicts firm success, measured by firm age in years. Study participants (n = 111) were owners of small businesses in the state of New Hampshire who had been in business for a minimum of 5 years. The results of the multiple linear regression analysis indicated that bootstrap use and number of employees did not significantly predict business survival. Results indicate support for the pecking order theory of financing with minimal evidence of entrepreneurs enacting their environment. The majority of entrepreneurs surveyed used at least one method of bootstrap finance to support the business. Bootstrapping methods with the highest rate of use were offering the same conditions of all customers, negotiating the best payment terms with suppliers, and buying used equipment over new equipment. The implications for positive social change include the potential to provide New Hampshire small business entrepreneurs with information for making informed financial decisions and creating financial models.
author Schofield, Robin Marie
author_facet Schofield, Robin Marie
author_sort Schofield, Robin Marie
title Relationship Between Bootstrap Financing, Number of Employees, and Small Business Success
title_short Relationship Between Bootstrap Financing, Number of Employees, and Small Business Success
title_full Relationship Between Bootstrap Financing, Number of Employees, and Small Business Success
title_fullStr Relationship Between Bootstrap Financing, Number of Employees, and Small Business Success
title_full_unstemmed Relationship Between Bootstrap Financing, Number of Employees, and Small Business Success
title_sort relationship between bootstrap financing, number of employees, and small business success
publisher ScholarWorks
publishDate 2015
url https://scholarworks.waldenu.edu/dissertations/471
https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=1470&context=dissertations
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