Prediction of small business owners success level by means of biographical and business variables.

Abstract

The main aim of this study was to establish the biographical and business variables as predictors of of success of small business' owners in South Africa. is based on secondary information obtained from the national venture capital organisation. value of the level The study files of a The sample consisted of 569 small business owners active within 435 businesses. The statistical analysis strategy implemented was aimed at eliminating chance and capitalisation on chance in an attempt to eventually identify discriminants in a more accurate, valid and reliable manner. One-way Analyses of Variance with Bonferroni's Ranges test specified (only ordinal and interval scale variables) and Chi-square (only nominal scale variables) were used to initially investigate relationships among level of success of small business owners and biographical and business variables. Stepwise Discriminant analyses was then used to determine the relationship between level of success of small business owners and biographical/business variables. Significant differences in the level of success of small business owners were found for five biographical and seven bus iness variables. Discriminant analyses was then used to predict level of success of small business owners by means of the significant biographical/business variables identified in the first phase of the statistical analysis (Chi-square, One-way Analyses of Variance, Stepwise Discriminant Analyses). The results of the study revealed that certain biographical and business variables are promising as predictors of the level of success of small business owners. The results are discussed in terms of (1) implications for the selection criteria of venture capital organisations in selecting possible successful small business owners and (2) future economic policies for South Africa.