Financial Strategies for Sustaining Small Businesses

Financial Strategies for Sustaining Small Businesses by Jennifer Cummings MBA, Pennsylvania State University, 2001 BS, Elizabethtown College, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University July 2018 Abstract A failure of a small business has a negative impact on the economic health of the community where the small business operates. Small businesses are significant entities in economies around the world, but small businesses have a high failure rate. The purpose of this multiple case study was to explore what financial strategies small business manufacturing leaders use to increase productivity and profitability to sustain the business for longer than 5 years. The population for this study was three small manufacturing business owners in Pennsylvania who have been in business over 5 years and have used financial strategies to increase productivity and profitability. The theory of planned behavior was the conceptual framework for the study. Data were collected using semistructured interviews and direct observation. Methodological triangulation was used to analyze the data. Four themes emerged after the data was coded in NVivo: the importance of company data, planning for a sustainable future using capital expenditures, cash flow management, and owner/employee collaboration in decisionmaking. The potential for positive social change includes increasing the survival rates of small businesses. The increase in small business survivals may potentially contribute to increases in employment rates in the community of small manufacturing businesses, leading to increased family incomes and improved overall economic health of the community.A failure of a small business has a negative impact on the economic health of the community where the small business operates. Small businesses are significant entities in economies around the world, but small businesses have a high failure rate. The purpose of this multiple case study was to explore what financial strategies small business manufacturing leaders use to increase productivity and profitability to sustain the business for longer than 5 years. The population for this study was three small manufacturing business owners in Pennsylvania who have been in business over 5 years and have used financial strategies to increase productivity and profitability. The theory of planned behavior was the conceptual framework for the study. Data were collected using semistructured interviews and direct observation. Methodological triangulation was used to analyze the data. Four themes emerged after the data was coded in NVivo: the importance of company data, planning for a sustainable future using capital expenditures, cash flow management, and owner/employee collaboration in decisionmaking. The potential for positive social change includes increasing the survival rates of small businesses. The increase in small business survivals may potentially contribute to increases in employment rates in the community of small manufacturing businesses, leading to increased family incomes and improved overall economic health of the community. Financial Strategies for Sustaining Small Businesses by Jennifer Cummings MBA, Pennsylvania State University, 2001 BS, Elizabethtown College, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University July 2018 Dedication This study is dedicated to my husband, Doug, and daughters, Hailey and Kara. Thank you for all the support you gave me through this journey. Without you, I would not have started nor completed this program. Acknowledgments Many people have helped and supported me through this journey. I would first like to thank you my Chair, Dr. Susan Fan. Dr. Fan was my first faculty member in the DBA program and provided me with a positive foundation for the rest of my classes. As a Chair, Dr. Fan was so supportive and encouraging in class and on a one on one level when necessary. I would also like to thank my committee members Dr. Sean Stanley and Dr. Neil Mathur for their valued feedback and support of adjustments I had to make to my study. I would also like to thank the participants in my study for the fast scheduling of initial interviews and member checking processes. I would like to thank my husband and daughters for their understanding of the time commitments I needed to complete my assignments. The countless Saturdays and Sundays that you went on daddy/daughter road trips, so that I could spend my undivided attention on writing was greatly appreciated and helped me succeed in this journey. I love all three of you immensely.