The impact of personal networks and social support on small business success among members of middle eastern communities in Melbourne
Creators: name: Pitrus, Widad
Publisher: name: RMIT University
Year: 2024

description: This dissertation examined how personal networks and social support impact on small business success among 113 entrepreneurs of Middle Eastern communities (from Lebanon, Egypt and Iraq) in Melbourne, Australia. The study also attempted to aid government and financial institutions in developing policies and designing training programs with better knowledge of the specific needs of the small business owner/managers from disparate cultural backgrounds. The focus was upon those small owners/managers of Arabic-speaking backgrounds who legally owned/managed a small business in the manufacturing industry with fewer than 100 employees, or in the service industry with fewer than 20 employees. The subjects in the quantitative aspect of the study were surveyed with a questionnaire and sixteen were randomly selected for further interview in the qualitative aspect of the study. <br><br>The findings confirmed previous studies that social support is a multidimensional construct. The sample appeared to have high marriage stability, were older rather than younger with shorter periods of unemployment after first arriving in Australia. The more successful entrepreneurs met more people from other communities in a week, utilized two or more places of business trading, had good command of English combined with proficiency in other languages. Geographic proximity to ethnic community yielded favourable business results. The small businesses appeared to be dominated by males and the vast majority were operating in the service industry. <br><br>The significance of the study also lies in four sub-scales of receiving (RSS) and giving social support (GSS) from and to the Middle- Eastern small business owner/managers, namely Emotional; Appraisal; Informational; and Instrumental. Data were also gathered to measure small business success variables of the study using quantitative and qualitative measures. <br><br>This dissertation produced a number of key findings: two positive relationships between net income and the number of business success indicators and the length of time in business and the question how successful the business is were evident though the effect size of these associations was moderately small. However, the findings indicated that GSS Appraisal to extended family and GSS Instrumental to employees were the only similar dependent variables that predicated the length of time in business and the self-rated question of how successful or unsuccessful the business is. Thus, despite these results the five business success variables, to a great extent, were found to be independent success measures.<br><br>Informal personal networks sources of receiving and giving social support seemed to be more significant in influencing business success, specifically from extended family, friends, immediate family, employees, and people from own community. The presence of accountants, bankers and solicitors, as part of the formal personal network was the least important source of receiving the four types of support. The study sample received much more social support from all ten personal networks sources than they provided to these sources collectively which influenced business success.<br><br>