Short answer
Small business owners and aspiring entrepreneurs should actively cultivate and integrate collaboration, communication, mentorship, people skills, networking, employee investment, leading by example, and strategic planning into their operational framework to enhance long-term business viability.
- Field
- Innovation & Markets
- Source
- ScholarWorks (Walden University) (2013)
- Method
- Phenomenological study
- Sample
- 20 participants
- Evidence
- Strong effect
Small businesses that successfully navigate their first five years and achieve long-term sustainability rely on a combination of collaborative communication, mentorship, strong people skills, strategic networking, investment in employees, leading by example, and proactive planning. This innovation & markets research insight is drawn from a 2013 study published in ScholarWorks (Walden University). Using Phenomenological study with 20 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Small business owners and aspiring entrepreneurs should actively cultivate and integrate collaboration, communication, mentorship, people skills, networking, employee investment, leading by example, and strategic planning into their operational framework to enhance long-term business viability.
Seven Core Practices Drive Small Business Longevity Beyond Five Years
Small businesses that successfully navigate their first five years and achieve long-term sustainability rely on a combination of collaborative communication, mentorship, strong people skills, strategic networking, investment in employees, leading by example, and proactive planning.
ScholarWorks (Walden University) · 2013
Key Findings
- 01Collaboration and communication are vital.
- 02Mentorship plays a significant role.
- 03Strong people skills are essential for managing relationships.
- 04Networking provides crucial support and opportunities.
- 05Investing in employees fosters growth and retention.
Application
Design takeaway
Small business owners and aspiring entrepreneurs should actively cultivate and integrate collaboration, communication, mentorship, people skills, networking, employee investment, leading by example, and strategic planning into their operational framework to enhance long-term business viability.
How to apply
Entrepreneurs can conduct self-assessments against these seven practices and seek resources or training to strengthen areas of weakness. Business consultants can use these findings to guide their advisory services.
Project actions
- 01When researching a business idea, consider how these seven practices can be integrated from the outset.
- 02If analyzing a failing business, assess the absence or weakness of these practices.
- 03When developing a business plan, dedicate sections to outlining strategies for collaboration, mentorship, people development, networking, and planning.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Phenomenological approach captures rich, lived experiences.
- +Focus on practitioners provides practical insights.
- +Identifies specific, actionable themes for improvement.
Limitations
The findings are based on the self-reported experiences of leaders and may be subject to recall bias or social desirability. The specific context of the US Midwest might influence the applicability of these findings elsewhere.
Reliability & validity
Reliability could be enhanced through triangulation of data (e.g., interviews with employees or customers). Validity is supported by the phenomenological approach, which aims to capture the essence of lived experience, and by the consistency of themes emerging from multiple participants.
Think critically
To what extent do these seven practices represent universal principles of business leadership, and how might their relative importance vary across different industries or cultural contexts?
Design Principles
"Sustained business success is built upon a foundation of interpersonal, strategic, and developmental practices."
Understanding the critical practices that foster long-term viability in small businesses is essential for entrepreneurs, investors, and policymakers. By identifying and implementing these proven strategies, new and existing ventures can significantly increase their chances of sustained success, contributing to economic stability and community well-being.
What This Means for Your Design
To make a small business last longer than five years, leaders need to be good at working with others, teaching and learning from people, building relationships, connecting with others, helping their employees grow, being a good role model, and planning ahead.
How to use in your project
- 1.Use these findings to justify the importance of specific business strategies or operational models in your design project.
- 2.Refer to these seven practices when discussing the potential challenges and success factors for a proposed business venture.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that small businesses achieving longevity beyond five years consistently implement seven core practices: fostering collaboration and effective communication, engaging in mentorship, developing strong people skills, actively networking, investing in employee development, leading by example, and strategic planning. These elements are crucial for navigating the challenges inherent in building a sustainable enterprise.
Source
ScholarWorks (Walden University)
Understanding Leadership in Small Business from the Perspectives of Practitioners
journal · 2013
View sourceQuestions About This Research
- What does the research say about seven core practices drive small business longevity beyond five years?
- Small business owners and aspiring entrepreneurs should actively cultivate and integrate collaboration, communication, mentorship, people skills, networking, employee investment, leading by example, and strategic planning into their operational framework to enhance long-term business viability. Evidence: ScholarWorks (Walden University) (2013).
- Why does "Seven Core Practices Drive Small Business Longevity Beyond Five Years" matter for design?
- Understanding the critical practices that foster long-term viability in small businesses is essential for entrepreneurs, investors, and policymakers. By identifying and implementing these proven strategies, new and existing ventures can significantly increase their chances of sustained success, contributing to economic stability and community well-being.
- How can designers apply this research?
- Small business owners and aspiring entrepreneurs should actively cultivate and integrate collaboration, communication, mentorship, people skills, networking, employee investment, leading by example, and strategic planning into their operational framework to enhance long-term business viability.
- What were the main findings?
- Collaboration and communication are vital.. Mentorship plays a significant role.. Strong people skills are essential for managing relationships.. Networking provides crucial support and opportunities.
- What research method was used?
- Phenomenological study with 20 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2013 journal from ScholarWorks (Walden University).
- What should I do differently in my next project?
- Entrepreneurs can conduct self-assessments against these seven practices and seek resources or training to strengthen areas of weakness. Business consultants can use these findings to guide their advisory services.
- What are the limitations?
- The study focused on a specific geographic region (US Midwest) and may not fully represent the experiences of small business leaders in other cultural or economic contexts. The sample size, while sufficient for a phenomenological study, limits generalizability.