Can critical success factors of small businesses in emerging markets advance UN Sustainable Development Goals?

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Date
2020
Authors
Gyimah, Prince
Adeola, O
Appiah, K O
Lussier, R N
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Publisher
Emerald
Abstract
Purpose – This study contributes to answering the question, can critical success factors of small businesses in emerging markets advance United Nation (UN) Sustainable Development Goals (SDGs)? Specifically, this study aims to explore the critical factors contributing to the success of small businesses and ultimately the UN SDGs in the emerging market of Nigeria. Design/methodology/approach – The design is survey research testing the Lussier success vs failure prediction model for small businesses in Nigeria. The methodology includes a logistic regression model to better understand and predict the factors that contribute to success or failure using a data set of 201 small businesses in Nigeria. Findings – The findings support the validity of the Lussier model (p 5 0.000) in Nigeria as the model accurately predicted 84.4% of the small businesses as successful or failed with a high R-square value (R 5 0.540). The most significant factors (t-values < 0.05) that predict the success or failure of businesses support the findings that business owners that start with adequate capital, keep records and financial controls, use professional advice, have better product/service timing, and have parents who own businesses can increase the probability of success. Practical implications – The study provides a list of critical success factors contributing to the growth of small business in Nigeria, the largest economy in Africa. The findings can help entrepreneurs avoid failure and advance UN SDGs 1, 2, 8 and 10. Implications for current and future entrepreneurs, public agencies, consultants, educators, policymakers, suppliers and investors are discussed. Originality/value – This is the first study to determine the factors that contribute to the success or failure of small businesses in Nigeria using the Lussier model. It also discusses how to advance four of the UN sustainability goals. Results support the Lussier model’s global validity that can be used in both emerging and developed markets, and it contributes to the development of theory.
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Citation
Adeola, O., Gyimah, P., Appiah, K. O., & Lussier, R. N. (2021). Can critical success factors of small businesses in emerging markets advance UN Sustainable Development Goals?. World Journal of Entrepreneurship, Management and Sustainable Development, 17(1), 85-105.