Understanding Leadership in Small Business from the Perspectives of Practitioners

Understanding Leadership in Small Business from the Perspectives of Practitioners by Daniel E. Holloway MBA, City University, 2001 BSBA, Saint Joseph’s College, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2013 Abstract Many small businesses fail after 5 years, having a negative impact on local and national economies. The purpose of this phenomenological study was to explore small-enterprise leader-operators’ experiences regarding practices that aid sustainability beyond 5 years. Twenty small enterprise leaders in the United States Midwest who were identified as having 5 years of longevity in leading organizations with fewer than 500 employees were invited to participate. These participants shared their lived experiences through semistructured interviews conducted in-person and by telephone. The dynamic theory of leadership development was used to underpin the study. In the central research question for this study, the skills and practices needed by small-business practitioners to ensure success beyond 5 years were addressed. A reduction method was used to reduce data from 11 interview questions in 20 semistructured interviews into common themes. Seven themes emerged as long-term practices used by practitioners. These 7 practices included collaboration and forms of communication, mentoring, people skills, networking, investing in people, setting an example, and planning. The implications for positive social change include the potential to stabilize the economic wellbeing of the small business sector and therefore the community. Small business practitioners may benefit from this research by identifying and improving practices leading to long-term viability.Many small businesses fail after 5 years, having a negative impact on local and national economies. The purpose of this phenomenological study was to explore small-enterprise leader-operators’ experiences regarding practices that aid sustainability beyond 5 years. Twenty small enterprise leaders in the United States Midwest who were identified as having 5 years of longevity in leading organizations with fewer than 500 employees were invited to participate. These participants shared their lived experiences through semistructured interviews conducted in-person and by telephone. The dynamic theory of leadership development was used to underpin the study. In the central research question for this study, the skills and practices needed by small-business practitioners to ensure success beyond 5 years were addressed. A reduction method was used to reduce data from 11 interview questions in 20 semistructured interviews into common themes. Seven themes emerged as long-term practices used by practitioners. These 7 practices included collaboration and forms of communication, mentoring, people skills, networking, investing in people, setting an example, and planning. The implications for positive social change include the potential to stabilize the economic wellbeing of the small business sector and therefore the community. Small business practitioners may benefit from this research by identifying and improving practices leading to long-term viability. Understanding Leadership in Small Business from the Perspectives of Practitioners by Daniel E. Holloway MBA, City University, 2001 BSBA, Saint Joseph’s College, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University December 2013 Dedication I dedicate this study to my mother, an immigrant, from Japan who pushed me to be better than the world I knew would allow. My father shares in the study as someone who moved me to do things right, was perhaps the wisest man I knew. Additionally, my children and grandchildren, whose patience and love allowed me to miss occasional memorable family events. Finally, my wife whose patience and long-suffering allowed me to pursue my dreams, and whose deep love keeps me firmly grounded in reality. I cannot say enough to the people who inspired me to improve, not least among them the Walden faculty and dissertation committee who pushed me to do my best. The Walden process of continuous improvement kept me aligned with both my heritage and my goals. When I started this endeavor, it was clear; I was standing on the shoulders of others. It is humbling to participate with people having the same goal of understanding and improvement. Acknowledgments I am thankful to my wife and family for their unwavering support. They were patient and encouraging when answers were difficult to find. Next my extended family and friends to whom I shall be forever grateful for understanding changes that I needed to make and my limited availability. I am grateful to a Lord who allows a person to dream, to help others, and to participate in life. Finally, thanks to my fellow scholars at Walden University, faculty, and staff. Dr. Schaefer kept me on point and taught me much about appropriate leadership. The faculty and staff kept me focused, encouraged me in the process, and assured me that what I was trying to do was worth the effort.