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Although small business is the engine of our economy, we don't know much about how the engine is functioning in these economically turbulent times. This research study explored the current attitudes of micro-entrepreneurs about business expectations over the next twelve months, the top factors that are critical to their success, and the top challenges they face. Findings show that micro-business owners are optimistic about revenue and profit growth and see the economy, penetrating new markets, and obtaining a trained workforce as the biggest factors determinant of success. The biggest challenges are the economy, finding new customers, tax burdens and regulation.
EXECUTIVE SUMMARY
A statewide survey was mailed to micro-businesses in the State of Maryland1. Micro-business is defined as those businesses with less than 5 employees (Kelly & Kawakami, 2008). Maryland is an unusual state, comprised of geography that ranges from mountains in the western part of the state, bounded by the Atlantic Ocean on the eastern side, and punctuated by a large portion of the suburban Washington, DC area, and the famous Port of Baltimore. Maryland's workforce is considered among the best educated in the United States with over one-third of its population twenty-five or older holding a bachelor's degree 16% with a graduate or professional degree ("Maryland at a Glance," 2009).
The purpose of the study was to obtain a profile of micro-businesses in Maryland and to assess microentrepreneurs' attitudes about the turbulent economy and how they saw their businesses adapting. What emerges is a detailed profile of micro-business regarding how these vital small businesses are managing. The survey, mailed to 9184 businesses with less than 5 employees, consisted of 45 items. 959 responses were received for a 10.44% response rate and were analyzed using SPSS.
Findings show that 91.8% of respondents are Caucasian. 30% are women. The majority of microentrepreneurs are 44-62 years of age. Only 1.1% did not finish high school and 24% earned a graduate degree. 73.7% had prior work experience related to their current business. 20.5% of the businesses were retail. The business was the primary source of income for 64.3% of respondents. Many employed family members in the business. Most of the businesses were operated as sole proprietorships with annual revenues of over $100k. Respondents discussed critical factors...