Presented by:

Zilbershtein Doron

A Qualitative Multi Case Study to Explore the Root Causes of Small

Business Failure 

my Doctoral Journey

December 18, 2012

Death by the Power point

No More!

1

The Agenda

1

2

3

5

4

Motivation 

Conceptual Framework

Theoretical Framework

My Contribution …If I could do it all over Again…?

Beyond the horizon…

Problem Statement

Literature Review

Research Questions

Methodology

The Participants

The Instrument

The FindingsImplications

RecommendationsConclusions

Q&ALiterature

Review Gap

Data Collection and Analysis Limitations

Evaluation of Finding

SBE Failure Predictive models

School of Thoughts

What it is all about ?

2

Motivation for the Study

• The personal reason• The professional reason • The academic reason

What It Is All About

75% new

SBEs don’t survive to

celebrate their first anniversary

44% of

U.S. payroll is generated by SBEs

The encouraging facts The sad facts

60% of job losses during the

last recession were among SBEs with Less than 20 employees

97% of the

U.S workforce is employed by

SBEs

Conceptual

Framework

The Entrepreneur-Venture-Organization Model (EVO)

Theoretical Framework

5

The Thirst for a Solution:

    “…Is there a link between the attitude, thought processes, perception, intentions and behavior of successful and unsuccessful business entrepreneurs and their business outcomes?...”

The Problem Statement

Looking for the Vital Signs? Research Questions

9

“…Is there a link between the attitude, thought processes, perception, intentions and behavior of successful and unsuccessful business entrepreneurs and their business outcomes?...”

RQ3. What are the specific behavioral patterns, intentions, perceptions and attitudes can be identified and associated with SBE’s

success?

RQ4. What are the specific behavioral patterns, intentions, perceptions and attitudes can be identified and

associated with SBE’s failure?

RQ2. How does the entrepreneur’s thought process and cognition, lead to decision making and taking actions

that affect the failure of an SBE?

RQ1. How does the entrepreneur’s thought process and cognition, lead to decision making and taking actions

that affect the success of an SBE?

Literature

7

Revi w

SBE’s Failure

Why SBEs Fail?

What is a Small Business Enterprise (SBE)

What is a Failure

Theoretical Framework 

Theory 

Historical Perspective

Data Sources

Entrepreneur's Symptoms  Venture

Symptoms

Organization’s Symptoms

SBE’s Failure Prediction Model 

Need to define Need to define

Provides the foundation for 

Need to explore

Need to explore

Need to explore

Need to exploreCan be observed through 

Is property ofIs property of

Entrepreneur’s Symptoms

Entrepreneur’s Thought Process

Though-Behavior-Outcome (TBO) 

Process

Entrepreneur's Perception

Entrepreneur’s Intentions

Leads to 

Provokes 

Entrepreneur’s Behavior

Is Part of 

Venture Symptoms Organization’s Symptoms

Entrepreneur’s Failure Venture’s Failure Organizational Failure

Entrepreneur’s Decline Venture’s Decline  Organizational Decline 

Is Manifested Through  Is Manifested Through  Is Manifested Through 

Leads to Leads toLeads to

Is Shaping the 

Is Part of 

Is Part of 

Is Part of 

Is Cause of  Is Affecting 

Entrepreneur’s Thought Process

Entrepreneur's Intentions

Entrepreneur's Perceptions

Subjective Norms

Entrepreneur's Decline

Organization’s Decline

Venture’s Decline

Provokes

Is a cause of 

Leads to

Entrepreneur's Behavior

Entrepreneur’s Beliefs

Entrepreneur’s Cognitive Style

Entrepreneur’s Self Efficacy 

Entrepreneur’s Perceived Behavior 

Control (PBC)

Entrepreneur’s Orientation

Is a cause of 

Influence the 

SBE Failure Prediction Models

Ultimate Success

Fatal/Catastrophic Failure

Turning Point

DeclineFailure

A B C

SBE Failure Predictive Models

6

Literature ReviewG_a_

p • Inconclusive definitions of SBE failure. • Failure to link success or failure to the entrepreneur’s own vision. • Limited view through financial and economic lenses. • Exclusion of cognitive and behavioral aspects. • Being confused between a symptom/outcome and a root cause. • Ignoring the life cycle of failure – Every failure begins with a decline. • Ignoring the intangible assets of an SBE as major contributor to its success or failure. • Lacking a systematic transparent RCA.

10

Qualitative research design

Multi case study methodology Source: 

http://www.effingerassociates.com/pages/current/methodology.htm 

Method ology

The Participants

The Instrument

What’s On Your Mind?

Data Analysis

Data Collection

Data Synthesis

Data Evaluation

Lim

itati

on

This Study

Purposeful

sampling

Data gathering, sorting, processing, coding,

analyzing and synthesizing

Participants’

orientation

Researcher experience

11

• Evaluation• Process mapping• Resistance

-------------------------• Implementation• Training• Change support• Use of Technology• Staff Engagement

-------------------------• Improvements• Team Attributes• Consistency

TheIt Is All About …

Findings…

The In

terp

retation

“…Is there a link between the attitude, thought processes, perception, intentions and behavior of successful and unsuccessful business entrepreneurs and their business outcomes?...”

Attitude

Thought Process Perceptions

Intentions

Behavior Patterns

Evaluation

of findin

gs

15

Emerging

Themes

RQ2. How does the entrepreneur’s thought process and cognition, lead to decision making and taking actions that affect the failure of an SBE?

RQ1. How does the entrepreneur’s thought process and cognition, lead to decision making and taking actions that affect the success of an SBE?

Orientation & Disposition

Mindset Rigidity

Thinking Styles Spectrum

Pattern Recognition

Reasoning

RQ3. What are the specific behavioral patterns, intentions, perceptions and attitudes can be identified and associated with SBE’s success?

RQ4. What are the specific behavioral patterns, intentions, perceptions and attitudes can be identified and associated with SBE’s failure?

Sense of Transparency

Sense of Urgency

Sense of Relevancy

Depth of Perception

Peripheral Attitude

18

Implic

ations

19

• Emotions/Decision Making interplay • Merging patterns with opportunities • Encourage to think in an unstructured

manner under unpredictable environment

• New approach to raising funds• The reinforcement of emotional

intelligence role in entrepreneurial success

or simply

The Implications

The “Ah ha” Moment

Recommendations

20

Reco

mm

en

dati

on

s For Practice: Entrepreneurs

For Practice: Current and future researchers

For Future Research: Various topics & methods

For Practice: Academia

My Contribution…

The Purpose of an SBE

Theory of Planned

Behavior in Entrepreneursh

ip

Psychological aspects of

entrepreneurship

What is an SBE Failure?

EVO Model

Conclusions

To sum it up…The same as Starbucks is not about

the coffee…

This study is not about the failure of the

small business

functions ….

…as it is about understanding the importance of the

interaction between the entrepreneur’s left brain and its

right brain!

…as it is all about the people!

If I could do it all over again…• Keep the same committee• Use Mix Method • Expand sample size

The Monday Morning

Quarterback…

What have I learned from this Intellectual Expedition?

The Power ofStrength

The Essenceof Wisdom

The Nature ofPerseverance

The Value ofAuthentic

Relationships

The Importance of Self Confidence & Self Assurance

Beyond the Horizon…

Source: http://english11honors10-11.blogspot.com/2011/04/wednesday-13-april-beyond-horizon.html 

Publish articles

Develop an instrument to assist “Corpreneurs”

Complete writing my book “Cultural Tsunami”Launch Boot Camp for Entrepreneurs: A series of workshops and webinars

The Myth about SBE Failure: Journal of Small Business Management

The Study: Journal of Business Venturing

The Research method: The Qualitative Report

The Entrepreneur’s Cognition and Thought Process: Journal of Entrepreneurship Theory and Practice

Develop an instrument to predict SBE’s survivability

In a …

My Final Thoughts…

A clue: “a nut shell”

4

I though I knew what I was against….and then reality

emerged!

At the beginning

clarity was a rare

commodity…

I needed to….

Transform myself from a creative to a scholar

writer…

I spent many hours burning the candle at both ends!!!

Formulating meaningful

opinions based on scattered pieces of information

was a challenge!

Doron

Zilbershtein

Committee Chair: Dr. Kenneth Gossett

Committee Member: Dr. Rocky Dwyer

Committee Members: Dr. Karen Yasgoor

Committee Member: Dr. Gene Fusch

questions?Any