The Road Ahead: Micro Enterprise Perspectives on Success and Challenge Factors

The Road Ahead: Micro Enterprise Perspectives on Success and Challenge Factors

Michael Monahan Frostburg State University Amit Shah Frostburg State University Martha Mattare Frostburg State University

The United States and the world at large are currently trying to recover from a housing bust and a financial meltdown. Small businesses, with their creativity and innovation, have the potential to reverse the course for any economy. The largest percentages of entrepreneurs are micro enterprises which may hold the key to economic revitalization. This study focused on the success and challenges facing these emerging businesses. The study found several interesting and statistically significant differences based on gender, ethnicity, sales volume, years in operation and type of business. Not surprisingly, given the current economic malaise, the national economy was perceived to be both the most important success and challenge factor. Perhaps most surprising was healthcare which was ranked fifth. The study emphasizes the importance of entrepreneurship to any economy, especially the United States, in their revitalization efforts. INTRODUCTION In our turbulent, depressed economy, with gold over $1100 per ounce (Sykora, 2009) and unemployment over 10% (Weisman, 2009)), the expectation of small businesses as the engine of growth in the United States has never been more apparent. These nascent firms are struggling to obtain credit, seek qualified employees, and successfully market their goods and services during a time of fear and uncertainty. The United States has the highest number of entrepreneurs per capita than any industrialized country (Reynolds, 1999, p. 2 in Else, Doyle, Lisa, & Messenger, 2001). Microenterprise comprises more than one-half of all small businesses. Of these businesses, many are home-based, at least during the first few years of operation (SBA, 2004). In fact, the Small Business Administration (SBA) has duly noted the importance of small businesses....