Date of Conferral
7-3-2024
Date of Award
July 2024
Degree
Doctor of Business Administration (D.B.A.)
School
Management
Advisor
William Stokes
Abstract
The first 5 years of a small business (SB) life are critical because 50-60% fail. SB leaders are concerned about the inability of many SBs to attain sustainability within 5 years, given their pivotal role in owner and community financial viability. Grounded in the resource-based view theory, the purpose of this quantitative correlational study was to examine the relationship between SB operating efficiency, credit score, and sustainability. Secondary data for 211 closed and 211 companies still operating from 2013 to 2023 were collected from the Data Axle website for analysis. The results of the binary logistic regression were significant, X2 ( 3, N= 422 ) = 11.887, p = 0.008. Operating efficiency was statistically significant ( β = 1.595, p = 0.015 ) and accounted for most of the variation in the dependent variable sustainability. Overall, the categorical variable credit score did not significantly predict SB sustainability. A key recommendation is for SB owners to implement training and development programs, such as cash flow management and interpersonal relationships, to improve their core competencies and firms' operating efficiencies. The implication for positive social change is that more sustainable businesses will provide consistent employment and attract other businesses and infrastructure development such as roads and parks. The resulting improvements help raise the living standards for residents in these local communities.
Recommended Citation
HENRY, GARFIELD, "The Relationship Between Operating Efficiency, Credit Score, and Small Business Sustainability" (2024). Walden Dissertations and Doctoral Studies. 16023.
https://scholarworks.waldenu.edu/dissertations/16023
