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Critical Problems Of Rural Small Businesses: A Comparison Of African-American And White-Owned Formation And Early Growth Firms

Author

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  • MICHAEL L. HARRIS

    (Department of Management, East Carolina University, 3015 Bate Building, Greenville, NC 27858, USA)

  • W. LEE GRUBB

    (Department of Management, East Carolina University, 3015 Bate Building, Greenville, NC 27858, USA)

  • FREDERIC J. HEBERT

    (Department of Management, East Carolina University, 3015 Bate Building, Greenville, NC 27858, USA)

Abstract

This study investigated the critical problems encountered by African American and White-owned formation and early growth firms in rural businesses. Analyses were conducted to determine the most critical types of problems encountered by these businesses and the relationship between the types of problems reported and the owner's race and firm's developmental stage. Strategic problems were the most critical problems by business owners in the sample, regardless of race or developmental stage, followed by administrative and operations. Although no significant relationship was found between the type of problems and the owner's race, a significant relationship was found between problem type and the firm's developmental stage, such that businesses in the formation stage are more likely to encounter strategic problems and early growth firms more often experience administrative problems.

Suggested Citation

  • Michael L. Harris & W. Lee Grubb & Frederic J. Hebert, 2005. "Critical Problems Of Rural Small Businesses: A Comparison Of African-American And White-Owned Formation And Early Growth Firms," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 10(03), pages 223-238.
    • Handle: RePEc:wsi:jdexxx:v:10:y:2005:i:03:n:s1084946705000185
    DOI: 10.1142/S1084946705000185
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    Cited by:

    1. Sibylle Heilbrunn & Nonna Kushnirovich, 2007. "Immigrant and indigenous enterprises: similarities and differences," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 9(3), pages 344-361.

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