{ "issue_key": "vol06-no1-2018", "volume": 6, "number": 1, "season": "Autumn 2018", "year": 2018, "sequence": 9, "type": "research-article", "section": "Research Article", "title": "Entrepreneurship and Innovation: Tackling business failures in the UK through developing a prior-learning model", "subtitle": null, "slug": "entrepreneurship-and-innovation-tackling-business-failures-in-the-uk-through", "corporate_author": null, "authors": [ { "given_name": "Arif Ahmed", "family_name": "Sunny", "credentials": null, "affiliation": "Birkbeck College, University of London", "email": null, "orcid": null, "is_corresponding": false, "sequence": 1 } ], "abstract": "According to current data, business failure rate is a significant issue in the UK. Between 2001 and 2015, the rate of business closure almost matched the rate of start-ups in any single year. The author finds it interesting that data throughout this period shows business births outnumbering business deaths by only 87,000. This narrow margin raises questions about the real reason(s) prompting the seemingly high death rate and closure of businesses. In this article, Schumpeter’s Theory of Economic Development is used to demonstrate the importance of small enterprises to the UK’s economic development, and data from ONS (Office for National Statistics) are provided to support findings. Results are analysed by reference to external and internal factors affecting businesses, particularly in start-up stages. On the basis of findings, the author presents a model framework, which he believes can be used to inform future research in achieving higher success rates in enterprises.", "keywords": [ "Enterprise", "Innovation", "Business Failure", "Schumpeter’s Theory of Economic Development" ], "first_page": 57, "last_page": 65, "pdf_start": 58, "pdf_end": 66, "references": [ { "ordinal": 1, "raw_text": "Brandstatter, H. (1997). ‘Becoming an entrepreneur - a question of personality structure.’ Journal of Economic Psychology, 18, pp 157-177.", "doi": null, "markdown": "Brandstatter, H. (1997). ‘Becoming an entrepreneur - a question of personality structure.’ *Journal of Economic Psychology*, 18, pp 157-177." }, { "ordinal": 2, "raw_text": "Healy, S.B., and Lynas, M.G. (1997). Success and failure in the small firm: an investigation of meaning. Aberdeen Business School, The Robert Gordon University, Aberdeen", "doi": null, "markdown": "Healy, S.B., and Lynas, M.G. (1997). *Success and failure in the small firm: an investigation of meaning.* Aberdeen Business School, The Robert Gordon University, Aberdeen" }, { "ordinal": 3, "raw_text": "Kalleberg, A. L. & Leicht, K. T. (1991). ‘Gender and organizational determinants of small business survival and success.’ Academy of Management Journal, 34(1), pp 136-161.", "doi": null, "markdown": "Kalleberg, A. L. & Leicht, K. T. (1991). ‘Gender and organizational determinants of small business survival and success.’ Academy of Management Journal, 34(1), pp 136-161." }, { "ordinal": 4, "raw_text": "Keeble, D. & Walker, S. (1994). ‘New firms, small firms and dead firms: spatial patterns and determinants in the United Kingdom.’ Journal of Regional Studies, 28(4), pp 411-427.", "doi": null, "markdown": "Keeble, D. & Walker, S. (1994). ‘New firms, small firms and dead firms: spatial patterns and determinants in the United Kingdom.’ *Journal of Regional Studies*, 28(4), pp 411-427." }, { "ordinal": 5, "raw_text": "Losocco, K. A., Robinson, J., Hall, R. R. & Allen, J. K. (1991). ‘Gender and small business success: An inquiry into women’s relative disadvantage.’ Social Forces, 70(1), pp 65-85.", "doi": null, "markdown": "Losocco, K. A., Robinson, J., Hall, R. R. & Allen, J. K. (1991). ‘Gender and small business success: An inquiry into women’s relative disadvantage.’ *Social Forces*, 70(1), pp 65-85." }, { "ordinal": 6, "raw_text": "Low, M. & MacMillan, I. (1998). ‘Entrepreneurship: Past research and future challenges.’ Journal of Management, 14(1), pp 139-162.", "doi": null, "markdown": "Low, M. & MacMillan, I. (1998). ‘Entrepreneurship: Past research and future challenges.’ *Journal of Management,* 14(1), pp 139-162." }, { "ordinal": 7, "raw_text": "Lussier, Robert N. 1996. Reasons Why Small Businesses Fail: And How to Avoid Failure. [ONLINE] Available at: http://www.alliedacademies.org/archive/aej/ee1-2/paper2.html. [Accessed 15 June 2018].", "doi": null, "markdown": "Lussier, Robert N. 1996. *Reasons Why Small Businesses Fail: And How to Avoid Failure.* [ONLINE] Available at: http://www.alliedacademies.org/archive/aej/ee1-2/paper2.html. [Accessed 15 June 2018]." }, { "ordinal": 8, "raw_text": "Marcella, R. & Illingworth, L. (2012). ‘The impact of information behaviour on small business failure.’ Journal of Information Research, 17(3), pp 525.", "doi": null, "markdown": "Marcella, R. & Illingworth, L. (2012). ‘The impact of information behaviour on small business failure.’ *Journal of Information Research*, 17(3), pp 525." }, { "ordinal": 9, "raw_text": "Mehralizadeh Y. and Sajady S. 2005. A study of factors related to successful and failure of entrepreneurs of small industrial business with emphasis on their level of education and training. [ONLINE] Available at http://www.leeds.ac.uk/educol/documents/143150.html. [Accessed 15 June 2018].", "doi": null, "markdown": "Mehralizadeh Y. and Sajady S. 2005. *A study of factors related to successful and failure of entrepreneurs of small industrial business with emphasis on their level of education and training.* [ONLINE] Available at http://www.leeds.ac.uk/educol/documents/143150.html. [Accessed 15 June 2018]." }, { "ordinal": 10, "raw_text": "Miller, D. (1983). ‘Correlates of entrepreneurship in three types of firms.’ Journal of Management Science, 29(7), p. 33.", "doi": null, "markdown": "Miller, D. (1983). ‘Correlates of entrepreneurship in three types of firms.’ *Journal of Management Science*, 29(7), p. 33." }, { "ordinal": 11, "raw_text": "Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. New York: Free Press.", "doi": null, "markdown": "Mintzberg, H. (1994). *The Rise and Fall of Strategic Planning.* New York: Free Press." }, { "ordinal": 12, "raw_text": "Schumpeter, J.A. (1912) The Theory of Economic Development, Oxford University Press.", "doi": null, "markdown": "Schumpeter, J.A. (1912) *The Theory of Economic Development,* Oxford University Press." }, { "ordinal": 13, "raw_text": "Stokes, D. and Blackburn, R. (2001). Opening up business closures: a study of businesses that close and owners’ routes: A research report for HSBC, p 1.", "doi": null, "markdown": "Stokes, D. and Blackburn, R. (2001). *Opening up business closures: a study of businesses that close and owners’ routes: A research report for HSBC*, p 1." }, { "ordinal": 14, "raw_text": "Storey, P. D. J. and Greene, D. F. (2010). Small Business and Entrepreneurship. New York: Financial Times/Prentice Hall.", "doi": null, "markdown": "Storey, P. D. J. and Greene, D. F. (2010). *Small Business and Entrepreneurship*. New York: Financial Times/Prentice Hall." }, { "ordinal": 15, "raw_text": "Sullivan, T.A., Warren, E. and Westbrook, J. (1998). Financial Difficulties of Small Businesses and Reasons For Their Failure. Prepared for the Small Business Administration Contract # SBA-95-0403, Business Bankruptcy Project, Townes Hall, The University of Texas at Austin, Austin, TX 78705.", "doi": null, "markdown": "Sullivan, T.A., Warren, E. and Westbrook, J. (1998). *Financial Difficulties of Small Businesses and Reasons For Their Failure*. Prepared for the Small Business Administration Contract # SBA-95-0403, Business Bankruptcy Project, Townes Hall, The University of Texas at Austin, Austin, TX 78705." }, { "ordinal": 16, "raw_text": "Thurik, R. and Weneekers, S (2001). A Note on Entrepreneurship, Small Business and Economic Growth. Centre for Advanced Small Business Economics.", "doi": null, "markdown": "Thurik, R. and Weneekers, S (2001). *A Note on Entrepreneurship, Small Business and Economic Growth*. Centre for Advanced Small Business Economics." }, { "ordinal": 17, "raw_text": "UKBF (2017) Government-backed Start Up Loan default rates reach 50%. [ONLINE] Available at: https://www.ukbusinessforums.co.uk/articles/government-backed-start-up-loan-default-rates-reach-50.654/. [Accessed 15 June 2018].", "doi": null, "markdown": "UKBF (2017) Government-backed Start Up Loan default rates reach 50%. [ONLINE] Available at: https://www.ukbusinessforums.co.uk/articles/government-backed-start-up-loan-default-rates-reach-50.654/. [Accessed 15 June 2018]." }, { "ordinal": 18, "raw_text": "Ulmer, M.J. and Nielson, A. (1947). ‘Business Turnover and Causes of Failure.’ Survey of Current Business (April), pp 10-16.", "doi": null, "markdown": "Ulmer, M.J. and Nielson, A. (1947). ‘Business Turnover and Causes of Failure.’ *Survey of Current Business (April)*, pp 10-16." }, { "ordinal": 19, "raw_text": "Watson, J. and Everett, J. E. (1996). ‘Do Small Businesses Have High Failure Rates?’ Journal of Small Business Management, 34(4), pp 45-62.", "doi": null, "markdown": "Watson, J. and Everett, J. E. (1996). ‘Do Small Businesses Have High Failure Rates?’ *Journal of Small Business Management*, 34(4), pp 45-62." } ], "notes": [], "figures": [ { "kind": "figure", "file": "figures/fig-01-p59.png", "caption": "Table 1: The business birth rate in 2016 is the highest since at least 2001", "pdf_page": 59, "text_in_image": null }, { "kind": "figure", "file": "figures/fig-02-p59.png", "caption": "Graph 1 The business birth rate in 2016 is the highest since at least 2001.", "pdf_page": 59, "text_in_image": null }, { "kind": "figure", "file": "figures/fig-03-p60.png", "caption": "Table 2: UK statistics on business closures and liquidations. Source: Small Business Service, 2001; Dun & Bradstreet, 2001.", "pdf_page": 60, "text_in_image": null }, { "kind": "table", "file": "figures/table-04-p62.png", "caption": "Table 3: Annual percentages of default in start-up loans (UKBF, 2017)", "pdf_page": 62, "rows": [ [ "Origination", "No.", "Value of loans", "Payment default" ], [ "2012-13", "1,820", "£9,631,751", "45.70%" ], [ "2013-14", "12,628", "£69,840,358", "49.60%" ], [ "2014-15", "13,488", "£66,525,878", "32.80%" ], [ "2015-16", "9,141", "£64,111,534", "18.90%" ], [ "2016-17", "8,541", "£81,979,030", "4.00%" ] ] }, { "kind": "figure", "file": "figures/fig-05-p65.png", "caption": "Figure 4: A model framework to contribute in Start-up Business survival by Author", "pdf_page": 65, "text_in_image": null } ], "files": { "html": "index.html", "body_markdown": "body.md", "pdf": "article.pdf" }, "word_count": 2517, "conversion_warnings": [ "Table 1, Graph 1 and Table 2 (PDF pp.58-59) are raster images in the source and are kept as images; Table 3 (PDF p.61) is rebuilt as a pipe table (figures/table-04-p62.png is an unused crop of it).", "Figure 4 (PDF p.65) is a full-page diagram assembled from many small images and text labels; rendered as one image.", "Two URLs in the references were printed with stray spaces from justification (Mehralizadeh and Sajady; UKBF) and were rejoined.", "The indented 9pt list of reasons for failure (Paul Lewis) is printed as one run-on paragraph starting ‘1)’; kept as a single block quote." ], "manifest_notes": "Printed title ends with a full stop ('...prior-learning model.'), dropped here. Affiliation from Contributors bio ('pursuing his MRes leading to PhD at Birkbeck College, University of London'). Visuals: PDF 59 'Table 1' (raster image) and 'Graph 1' (raster image); PDF 60 'Table 2' (raster image, with Source line); PDF 62 'Table 3' native vector-ruled text table; PDF 65 full-page 'Figure 4: A model framework to contribute in Start-up Business survival by Author' composed of many small images + vector shapes + text labels. There is no Figure 1-3. PDF 60 has a stray duplicate folio '59' at bottom left. References PDF 66 (URLs wrap with inserted spaces, e.g. 'g/overn ment-backed').", "source": { "pdf": "vol06-no1-2018.pdf", "ocr": false }, "reviewed": true }