THE RISE AND FALL OF SMALL BUSINESS ENTERPRISE

Abstract

Small business is universally recognized as the engine of the world economy. It is praised for adding substantially to every country’s gross domestic product (GDP), employment, innovative ability, and tax base. However, the survival rate of small businesses in their first ten years of operation is not high. Only about 20 percent of new business enterprises survive beyond their first ten years. Of those few are referred to as gazelles because they grow fast into medium and large corporations, but many prefer to remain small. This study, which is written to students and potential entrepreneurs, explores the strengths and weaknesses of small business enterprises and the factors that contribute to their success or failure. Hopefully, it would contribute to the literature in the fields of entrepreneurship and small business administration.