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According to the Small Business Administration, there are approximately 23 million small businesses in the United States. Over 86% of businesses have no more than 20 employees, although the total number of people employed is approximately one-fourth of the entire United States workforce. Nearly 50% of all small businesses close within the first five years. The purpose of this qualitative case study was to understand the decisions and actions a small business owner takes when pursuing marketing strategy. Five findings emerged from the in-depth interviews: marketing, formulating strategy, strengths, values, and needs.
INTRODUCTION
On average, 60% of employers have fewer than five employees and 80% of all companies have sales which are less than $1 million (Bovee et al, 2007). Over 86% of businesses have no more than 20 employees, although the total number of people employed is approximately one-fourth of the entire United States workforce (Griffin & Ebert, 2006).
In 2006, there were 649,700 new businesses and 564,900 existing businesses that closed (SBA, 2008a). Nearly 50% of all small businesses close within the first 5 years (SBA, 2008b). Two common reasons noted by Dunn & Bradstreet for contributing to a failed business is inadequate marketing or poorly focused and executed marketing (MasterCard, 2008). Lack of marketing knowledge can be considered part of education and training (Simpson, Tuck, & Bellamy; Freeman, 2000).
Small businesses are considered the cornerstone of the United States economy (Bovee et al, 2007). Small businesses drive the economy and sustain the technological lead in the global marketplace resulting in one-third of all new patents issued. Over 60% of all new jobs are created yearly as the result of small business entrepreneurs creating opportunities for their business (Cardin, 2007). Small businesses represent 99.7% of all employer firms and 45%, or approximately half of all private sector employees, work for small businesses (Kobe, 2007).
In addition to creating jobs, small businesses create new ideas and processes through innovation which adds vigor to the marketplace and are important to large businesses since most of the products made by big businesses are sold by small businesses (Griffin & Ebert, 2006). Small business firms produce 13 times more patents per employee compared to large patenting firms (Kobe, 2007). The small business economy generates about half...