Critical Success Factors for Small Business: An Inter-industry Comparison

DR. DAVID GADENNE IS A SENIOR LECTURER in Accounting and Foundation Studies at Sunshine Coast University, Queensland, Australia. The main purposes of this paper are to determine whether there were any common (or different) management practices across different industries that contribute to the successful financial performance of small businesses; to determine whether any antecedent factors, in the form of owners' personal characteristics and enterprise objectives, significantly influence successful management practices for small business; and to document the practical implications of the current research for small business practice. While much previous research focused on the underlying 'causes' or reasons for the success of small business enterprises, very little research has been undertaken in relation to the different factors that are used to measure success across different industries. Moreover, the lack of a comprehensive theoretical framework between various factors and small business success has limited the usefulness of previous research. Accordingly, this study contributes to the existing literature by using a causal model framework involving the relationship between management practices and small firm performance for three different industry types, while considering the antecedent factors of small business owners' personal characteristics and small business enterprise objectives on management practices. The results show that there are different management practices associated with small firm success between industry groups and significant effects of enterprise objectives on management practices for only one type of industry.