Small Business Ventures in the U.S. Ref: Babiar (#1501). The client requeste

REVIEW OF RELEVANT LITERATURE: OPERATIONAL VARIABLES

This study was concerned with predicting the success of small business ventures in the United States. The essential question addressed within this context was the relative significance of the management of the operational variables associated with the success of a business enterprise as opposed to the background and personal characteristics of the individual beginning such a venture. In this chapter, literature is review in relation to the operational variables associated with the success of a small business venture. Literature relevant to the relationship between an individual's background and personal characteristics and the success of that individual in a small business venture is reviewed in the following chapter.

Five classifications of operational variable affecting the success of a small business venture are addressed in this chapter. These variable classifications are organizational form, capital generation, shortterm capital management, pricing and profitability management, and longterm capital management.

The form of business organization has a direct impact on the financial structure and financial performance of a firm. This impact results from differences in income tax liabilities for different types of business forms, and differences in the abilities of the different types of business to generate capital (Brigham, 1993, p. 94). Important organizational

Related Essays

Small Business Financial Management .... a significant proportion of entrepreneurial ventures in the .... Business defined a small business as one .... or fewer employees (US Small Business Administration, 1980 .... (2793 11 )

Women as Franchise Holders .... The workforce in the US is becoming older, and includes .... press version of an entrepreneur, their business ventures would always be small, because they .... (2157 9 )

Nature of Small Business Ownership .... significant proportion of entrepreneurial ventures in the .... These criteria restrict the small business classification to .... US Department of Commerce guidelines, as .... (6132 25 )

Small Business Activity in a Market Economy .... a significant proportion of entrepreneurial ventures in the .... Business defined a small business as one .... or fewer employees (US Small Business Administration, 1980 .... (9872 39 )

Family Owned Small Businesses .... significant proportion of entrepreneurial ventures in the .... These criteria restrict the small business classification to .... US Department of Commerce guidelines, as .... (3061 12 )

tems, held at stocking points, and serving to decouple successive operations in a manufacturing or distribution process (Peters, 1991, p. 221). Inventories may also be defined in an accounting context, as "the aggregate of those items of personal property which are (1) held for sale in the ordinary course of business, (2) in the process of production for later sale, or (3) held for current consumption in the production of goods and services . . . for sale" (Meigs and Meigs, 1992, p. 765). Inventories may be comprised of tangible goods, such as aircraft parts, or of intangible services, such as airline tickets. Inventory management and control is an important managerial function for the small business enterprise. There are many factors providing significance to the inventory management and control function. Among the more significant of these factors are the following: 1. It costs money to maintain inventories. This fact is a seemingly simple and obvious one; however, it is one which is often overlooked by small business managements. As an example, if a firm's cost of capital is 15 percent, the annual capital cost of carrying an inventory valued at $100,000 is $15,000, while it could cost $150,000 in interest charges per

Category: Business - S