A Business Success Versus Failure Prediction Model for Entrepreneurs with 0-10 Employees

  • Robert N. Lussier Springfield College
  • Joel Corman Suffolk University
  • Joel Corman Suffolk University

Abstract

This empirical survey study presents a success versus failure (SIF)prediction model (S/F = f [advisors, planning, education, minority business ownership, staffing, parents owned a business, record keeping and financial control, capital, industry experience, economic timing}). Using stepwise discriminant analysis, the predictor variables explained 54% of the variance in SIF. The model accurately predicted 75.00% of the surveyed 96 matched pairs firms as being successful or failed. The model will predict a group of businesses as successful or failed more accurately than random classification over 99% of the time (model p=. 0006).

Published
Jun 11, 2015
How to Cite
LUSSIER, Robert N.; CORMAN, Joel; CORMAN, Joel. A Business Success Versus Failure Prediction Model for Entrepreneurs with 0-10 Employees. Journal of Small Business Strategy, [S.l.], v. 7, n. 1, p. 21-36, june 2015. ISSN 2380-1751. Available at: <http://libjournals.mtsu.edu/index.php/jsbs/article/view/327>. Date accessed: 27 july 2017.
Section
Articles

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