Small Business Success is Random Says New Breakthrough Research
A groundbreaking, international, multi-year study indicates a serious disconnect between an entrepreneur’s intentions to build a solid and sustainable company and their behavior. Although organizations report that they are “focusing on business basics” they do not seem to be engaging in process or strategic improvement. The research indicates that startup success is random and that entrepreneurs are not receiving the right kind of support early enough.
Chicago, IL, September 08, 2012 --(PR.com)-- Methodology and Findings
During 2011/2012, over 220 participants were asked to rate their companies' business maturity levels on a scale of zero to five, as presented in the Breakthrough Growth Chart. Participants were then asked about their attitudes, behaviors, business structure and performance. Over 45% of the participants had less than 3 employees and of that, one half had 1 employee. 92% had less than 50 employees.
· At level 0 the “desires” of small business are great. They are enthusiastic and are shooting high. Their performance is also rated high.
· As business mature they seem to lose site of strategy, process and people and their performance degrades. At Level 2 they start to lose the importance of process and do not recover much as they mature to Levels 3-5.
· Business success seems almost random (and a small difference from level 0 to 5). Although organizations report that they are “focusing on business basics” they do not seem to be engaging in process or strategic improvement. In other words, there seems to be a disconnect between their intentions and appropriate action.
· The data shows that many small businesses are struggling with the basics. They require more direction in practical implementation of Baldrige best practices. Many are struggling with a lack of guidance.
· We found a slight ROI for those companies who (randomly discovered and) implemented best practices. With a better focus on Baldrige practices, it could be better.
The Breakthrough Research Study is continuing to gather data in its multi-year study of small business and best practices. The next report is expected at the end of 2012. At that point we should be able to report some statistical test results on the things that matter the most to performance improvement.
About the Breakthrough Project
The Breakthrough Project is a grassroot small business movement that provides entrepreneurs with free tools to help them build solid companies that are prepared for rapid growth. The Breakthrough Project focuses on education, research and community outreach.
Breakthrough Education offers entrepreneurs free copies of the “Small Business Breakthrough” Book. The book is available for free download from the Breakthrough website and iTunes. The Breakthrough book includes eight customizable tools that entrepreneurs can use to build a strong and successful company. Breakthrough Education also provides free coaching, consulting and classroom resources to SBDCs, Business Coaches, Consultants, Colleges and Entrepreneurship Centers. These free resources include a Breakthrough Book Teacher’s Guide, Quick Start Classroom Curriculum, Powerpoint files and sample workshops. Complete the contact form on the Breakthrough website for access to the Breakthrough Curriculum: http://www.smallbusiness-breakthrough.com/about/contact-us
Breakthrough Research is conducting an international, multiyear study designed to determine the impact of implementing best management practices, as defined by the U.S. Baldrige Performance Excellence Program, on startups. The objective of the Breakthrough Research is to identify the specific management behaviors that entrepreneurs can use to create more predicable business success. Learn more about the study or take the survey by visiting our website: http://www.smallbusiness-breakthrough.com/the-survey
Breakthrough Outreach promotes Success Stories, a growing library of articles written by entrepreneurs for entrepreneurs. Each article describes in first-person how applying best management practices benefited the business and employees. Currently the Breakthrough website has Success Stories covering the medical, retail, and professional services industries. To read a Success Story, or to add one of your own, please visit: http://www.smallbusiness-breakthrough.com/your-stories
Contact Information
Michael Kramer, CPA
847-675-8211
mk (at) onthesystem (dot) com
Dr. Kevin McKormack
DRK Research and Consulting LLC
Phone: 919-762-9322
kmccormack (at) drkresearch (dot) org
During 2011/2012, over 220 participants were asked to rate their companies' business maturity levels on a scale of zero to five, as presented in the Breakthrough Growth Chart. Participants were then asked about their attitudes, behaviors, business structure and performance. Over 45% of the participants had less than 3 employees and of that, one half had 1 employee. 92% had less than 50 employees.
· At level 0 the “desires” of small business are great. They are enthusiastic and are shooting high. Their performance is also rated high.
· As business mature they seem to lose site of strategy, process and people and their performance degrades. At Level 2 they start to lose the importance of process and do not recover much as they mature to Levels 3-5.
· Business success seems almost random (and a small difference from level 0 to 5). Although organizations report that they are “focusing on business basics” they do not seem to be engaging in process or strategic improvement. In other words, there seems to be a disconnect between their intentions and appropriate action.
· The data shows that many small businesses are struggling with the basics. They require more direction in practical implementation of Baldrige best practices. Many are struggling with a lack of guidance.
· We found a slight ROI for those companies who (randomly discovered and) implemented best practices. With a better focus on Baldrige practices, it could be better.
The Breakthrough Research Study is continuing to gather data in its multi-year study of small business and best practices. The next report is expected at the end of 2012. At that point we should be able to report some statistical test results on the things that matter the most to performance improvement.
About the Breakthrough Project
The Breakthrough Project is a grassroot small business movement that provides entrepreneurs with free tools to help them build solid companies that are prepared for rapid growth. The Breakthrough Project focuses on education, research and community outreach.
Breakthrough Education offers entrepreneurs free copies of the “Small Business Breakthrough” Book. The book is available for free download from the Breakthrough website and iTunes. The Breakthrough book includes eight customizable tools that entrepreneurs can use to build a strong and successful company. Breakthrough Education also provides free coaching, consulting and classroom resources to SBDCs, Business Coaches, Consultants, Colleges and Entrepreneurship Centers. These free resources include a Breakthrough Book Teacher’s Guide, Quick Start Classroom Curriculum, Powerpoint files and sample workshops. Complete the contact form on the Breakthrough website for access to the Breakthrough Curriculum: http://www.smallbusiness-breakthrough.com/about/contact-us
Breakthrough Research is conducting an international, multiyear study designed to determine the impact of implementing best management practices, as defined by the U.S. Baldrige Performance Excellence Program, on startups. The objective of the Breakthrough Research is to identify the specific management behaviors that entrepreneurs can use to create more predicable business success. Learn more about the study or take the survey by visiting our website: http://www.smallbusiness-breakthrough.com/the-survey
Breakthrough Outreach promotes Success Stories, a growing library of articles written by entrepreneurs for entrepreneurs. Each article describes in first-person how applying best management practices benefited the business and employees. Currently the Breakthrough website has Success Stories covering the medical, retail, and professional services industries. To read a Success Story, or to add one of your own, please visit: http://www.smallbusiness-breakthrough.com/your-stories
Contact Information
Michael Kramer, CPA
847-675-8211
mk (at) onthesystem (dot) com
Dr. Kevin McKormack
DRK Research and Consulting LLC
Phone: 919-762-9322
kmccormack (at) drkresearch (dot) org
Contact
Small Business Breakthrough Project
Michael Kramer
847-675-8211
www.smallbusiness-breakthrough.org
Michael Kramer
847-675-8211
www.smallbusiness-breakthrough.org
Contact
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