| The small business (sb, henceforth) failure rate is affecting all the stakeholders. Compared to the other U.S. territories, Puerto Rico has the biggest problem concerning sb failure and its consequences. Understanding the causes of sb failure (and success) can help alleviate the problem. The purpose of this quantitative, correlational study is to determine which variables utilized in the Lussier sb success/failure prediction models have an effect in predicting the success and/or failure of microbusinesses in Puerto Rico, under the theoretical framework of both the Resource Base View and the Upper Echelon Theories. According to the SBA, microbusinesses are the "backbone" of the U.S. economy. A sample of 140 successful and 105 failed microbusinesses covering all regions of P.R. was recruited out of a population of roughly 60,000. A questionnaire was administered (face to face interview-style in most cases), the data entered into SPSS and logistic regressions were performed to test the different models and the 21 study hypothesis. Results show that although some variables are success/failure factors of both small business and microbusinesses, other variables are not. Implications derived from this study include awareness on the part of both the financial institutions and the academic community, that microbusinesses are perhaps viewed erroneously as having the same needs and wants as small and medium enterprises. Officially formalizing the separation of these types of businesses may be an important step leading to the improvement in microbusiness performance, the economy and society in general. |
