In this study, the effect of internal characteristics of small business owners on business success was investigated. Work motivation and ability were considered as the most important internal characteristics of small business owners in this study. To ...
In this study, the effect of internal characteristics of small business owners on business success was investigated. Work motivation and ability were considered as the most important internal characteristics of small business owners in this study. To generate a model predicting success of small business, two variables indicating work motivation (Business role centrality and Satisfaction in business role) and two variables representing work ability (Business skill and Satisfaction in business management) were selected as predictor variables. To test the proposed model, part of data collected from 551 small business owners through Rural Development Initiative Project of the Iowa State University was submitted for structural equation modeling analysis using LISREL. In results, business skill and satisfaction in business management were important factors affecting business success while role centrality and satisfaction in role were not significant factors influencing business success. Study results presented that internal characteristics of business owners were also an important determinant for success of small business, along with financial indicators.