A study aimed to determining the reasons for success or failure of small business. A sample of
Question:
A study aimed to determining the reasons for success or failure of small business. A sample of 5o entrepreneurs was asked to indicate the perceived areas of strength of their organizations. Their responses identified 7 variables rated on five point scale.
Five-point Scale
Organizational Strength | Code |
Very strong | 5 |
Strong | 4 |
Natural/Normal | 3 |
Weak | 2 |
Very weak | 1 |
Variables
V1 = Location of the Firm
V2 = Product Quality
V3 = Pricing of the Product
V4 Customer Service
V5 = Innovation in Product
V6 = Cost Control
V7 =Employee Productivity
Questions:
1.Conduct a factor analysis to identify the reasons for success or failure of small business
2.Determine the variance summarized by the extracted factors.
3.Interpret the communalities of each of the variables.
3.What are the implications for the decision-maker in this case?
NOTE: Please go through the annexure file for the data(Success and Failure of Small Business data).
Business Statistics in Practice
ISBN: 978-0077404741
6th edition
Authors: Bruce Bowerman, Richard O'Connell