unity, in the context of small business enterprise, is relevant in three major contexts, as follows:
a. The small business activity should be in a growth industry (Kets de Vries, 1993, pp. 59 71). It is not impossible for a new small business to succeed in a non growth industry; however, the odds against success in such an instance are great in the contemporary environment.
b. The small business activity should be a part of the early stages of the development of an industry, when the costs for plant and equipment per dollar of sales are at their lowest points (Kets de Vries, 1993, pp. 59 71). As an industry develops, entry costs quickly develop into a formidable barrier.
c. The small business activity should be located in an area where big companies are located. The presence of big firms, although they may provide stiff competition for small businesses, also tends to insure that markets will exist for the smaller firms, and that the technological environment will be conducive to entrepreneurial and small business activities.
3. The third factor essential to the success of family owned businesses and small business enterprise generally is the existence of a skilled labor pool for the activity area (Kets de Vries, 1993, pp. 59 71). The small business owner and manager forms a part of the required labor pool. In this context, the skilled labor factor is closely related to individual characteristics of intelligence and knowledge. 4. The fourth factor essential to the success of family owned businesses and small business enterprise generally is the availability of venture capital (Kets de Vries, 1993, pp. 59 71). Insufficient capital is the number one reason for the failure of small business enterprise. The significance of sufficient capitalization for small business firms cannot be overemphasized.
Small Family Owned Business Management
The typical writing on small business activity indicates tha...