Posted: April 4th, 2019

Factors Affecting Small Business Growth and Success

Assessment Task:

Essay

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Word Length:

1500 words

Learning Outcome(s):

3 and 4

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Assessment Instructions

This assignment is compulsory for AFM522 Students

Obtain and read the following journal articles from the UNE library:

https://my.une.edu.au/f/u20l1s38/normal/render.uP

for library access

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Morrison, A., Breen, J. & Ali, S. 2003 “Small business growth: intention, ability and opportunity” Page Essay – Journal of Small Business Management, 41(4): 417-425

Reijonen, H. & Komppula, R. 2007 “Perception of success and its effect on small firm performance” Page Essay – Journal of Small Business and Enterprise Development, 14(4): 689-701

Wach, D., Stephan, U. & Gorgievski, M. 2016 “More than money: developing an integrative multi-factorial measure of entrepreneurial success” International Small Business Journal, 34(8): 1098-1121

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Reflect on the discussion in each of the three articles and explain how each of the articles relates to a concept you have learnt about in the unit. (8 marks)

Which of the three articles made the largest contribution to your understanding of a concept discussed in the material for AFM522? Your answer should include clear identification of the concept and how the ‘best article’ added depth to your understanding. (7 marks)

NOTE: Any material that should be referenced (and is not) will not be allocated a mark.

Define all key terms

The length for this assignment is 1 500 words. You will need to focus your attention on addressing the most important aspects of answering the questions in a clear and succinct style.

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Marking criteria

Learning outcome

15 marks total

HD = 15 – 12

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Factors Affecting Small Business Growth and Success

The growth and success of small businesses are influenced by various factors, including intentions, abilities, opportunities, perceptions, and multi-factorial measures of entrepreneurial success. This essay will discuss three journal articles related to these factors and their connection to concepts learned in AFM522. Additionally, the essay will identify the article that made the most significant contribution to understanding a concept discussed in the unit.

Article 1: Morrison, Breen, & Ali (2003) – “Small business growth: intention, ability and opportunity”
This article explores the relationship between growth intentions, entrepreneurial abilities, and external opportunities on small business growth. It emphasizes the importance of entrepreneurs’ intentions in pursuing growth, their capabilities to execute growth strategies, and the availability of favorable opportunities in the market. The article relates to the concept of entrepreneurial intentions discussed in AFM522. It highlights that entrepreneurs’ intentions to grow their businesses significantly impact their actual growth performance. Understanding the factors that influence growth intentions is crucial for formulating effective growth strategies.

Article 2: Reijonen & Komppula (2007) – “Perception of success and its effect on small firm performance”
Reijonen and Komppula examine the relationship between small business owners’ perception of success and their firm’s performance. They argue that subjective perceptions of success, such as achieving personal goals, play a vital role in motivating entrepreneurs and influencing their decision-making. This article connects to the concept of subjective performance measures in AFM522. It demonstrates that entrepreneurs’ perceptions of success are not solely based on financial indicators but encompass a broader range of personal and contextual factors. Acknowledging the impact of subjective perceptions helps in understanding the complexity of evaluating small business performance accurately.

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Article 3: Wach, Stephan, & Gorgievski (2016) – “More than money: developing an integrative multi-factorial measure of entrepreneurial success”
Wach, Stephan, and Gorgievski propose a multi-factorial measure of entrepreneurial success that goes beyond financial metrics. They argue that considering multiple success dimensions, such as financial, psychological, and social aspects, provides a more comprehensive understanding of entrepreneurial success. This article aligns with the concept of holistic performance measurement discussed in AFM522. It expands the understanding that success encompasses various dimensions beyond monetary outcomes and highlights the importance of evaluating non-financial aspects, such as well-being and social impact.

The article that made the largest contribution to my understanding of a concept discussed in AFM522 is Article 3 by Wach, Stephan, and Gorgievski (2016). This article added depth to my understanding of holistic performance measurement. It emphasized the importance of considering multiple dimensions of success, beyond financial metrics, in assessing entrepreneurial success. This concept is particularly valuable as it acknowledges the broader impact of entrepreneurship on individual well-being, societal welfare, and personal fulfillment. By adopting a multi-factorial measure of success, entrepreneurs can better align their goals, strategies, and actions with a more comprehensive understanding of success.

Conclusion:
The discussed articles shed light on various factors influencing small business growth and success. Each article relates to a concept learned in AFM522, including entrepreneurial intentions, subjective performance measures, and holistic performance measurement. Among the three articles, Wach, Stephan, and Gorgievski’s (2016) article made the largest contribution by emphasizing the need for a multi-factorial measure of entrepreneurial success. Understanding and considering diverse success dimensions enable entrepreneurs to pursue more meaningful and sustainable growth strategies. By integrating these insights, entrepreneurs can enhance their decision-making and strive for holistic success.

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