JMDC 6(1) Master

Exploring Marketing Strategies in Small Businesses

Julia Cronin-Gilmore

Bellevue Unive rsity

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 a ll 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 (Griff in & Ebert, 2006).

In 2006, there were 649,700 new bus inesses 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 know ledge can be

considered part of education and training (Simpson, Tuck, & Bellamy; Freeman, 2000).

Small bus inesses are considered the cornerstone of the United States economy (Bovee et al, 2007).

Small bus inesses 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 bus iness (Cardin, 2007). Sma ll bus inesses

represent 99.7% of all employer firms and 45%, or approximate ly half of all private sector employees,

work for small businesses (Kobe, 2007).

In addition to creating jobs, small bus inesses 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 of the private sector output plus serves niche markets that are

often not filled by large businesses (Bovee et al, 2007). Sma ll bus inesses fulfill an important role in the

economy by providing jobs; small bus inesses that desire to grow into midsize or large businesses create

between two-thirds to three quarters of new jobs (Bovee et al, 2007).

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Through small businesses, new products are introduced, which is a freedom of innovation

characteristic of many small businesses that yield countless advances in technologies, marketable goods,

and services (Bovee et al, 2007). Another service provided by small business proprietors is supplying the

needs of larger organizations by acting as distributors, suppliers, and servicing agents to large

corporations; government agenc ies often reserve a certain percentage of their purchasing contracts for

small businesses (Bovee et al, 2007). As a result of small bus inesses, a considerable amount of money

enters into the United States economy; plus, sma ll bus inesses are taking risks that larger businesses often

avoid by being willing to try new and unproven ideas (Bovee et al, 2007). The products or services small

businesses provide are often specialized, which fill market niches not being served by existing companies

(Bovee et al, 2007).

How small businesses pursue marketing strategy are an increasingly complex subject, and one that

should be studied using a case analysis method (Roberts, 2004). A case analysis exploratory method was

used to (a) diagnose the current marketing situation for small entrepreneurs, (b) screen possible

alternatives for incorporating the marketing plan and pursuing marketing strategies, and (c) discover how

organizations can reach small business owners and provide needed services including training to better

equip the business for success (Roberts, 2004).

Statement of the Problem

The general problem in small business marketing is that business owners have product or service

knowledge of what is being offered to customers but are not experts in the field of marketing and

therefore struggle with implementing strategic planning, a marketing plan, and other elements necessary

for success (Day, 2000; Kotler, 2004). The 10 most critical marketing mistakes a small business can make

include the following: not sufficiently market-focused and customer-driven, they do not understand target

customers or monitor competitors, mismanage relationships with stakeholders, they have diff iculty

discovering new opportunities, are defic ient in marketing planning; product and service policies need

tightening, weak brand-building and communications efforts, do not make maximum use of technology,

and they are not well organized to carry out marketing (Kotler, 2004). More specifically, small bus inesses

struggle due to lack of marketing know ledge that is aimed at understanding specific marketing problems

(Freeman, 2000; Kotler, 2004). Sma ll bus iness owners struggle, because when they seek help, they do not

understand if the knowledge they have sought is worthwhile to the success of their business.

Background and Significance of the Problem

In 2006, there were 649,700 new bus inesses and 564,900 existing bus inesses that closed (SBA,

2008a). Nearly 50% of a ll small bus inesses close within the first 5 years (SBA, 2008b). One common

reason noted by Dunn & Bradstreet for contributing to a failed business is inadequate marketing or poor ly

focused and executed marketing (MasterCard, 2008). A contributing factor to a failed bus iness can be

lack of marketing know ledge as it can be cons idered part of education and training (Freeman, 2000;

Simpson et a l, 2004). Education and training can lead to or be part of bus iness experience. According to

Hisrich (2008), “A lthough there are many causes of business failure, the most common is insufficient

experience” (p.38). Many small businesses are just concerned with selling and do not market their

business (Kotler, 2004).

A gap exists in the research between what a small bus iness owner should do to be successful and

what strategy decisions the owner actually makes which can be in conf lict. In the body of research,

authors study one part of a small bus iness owner’s strategy decisions, such as networking, but the

research does not take into account other factors such as forming a strategic alliance, competition, and

cooperation. The focus of this qualitative case study was to explore the effects of entrepreneurial

marketing strategy efforts and explore what decisions a small bus iness owner makes in regards to 12

subjects including: networking, firm resources and sustained competitive advantage, resource

disadvantage, competition and cooperation, growth, business partnerships and alliances, stakeholders,

strategies, profitable and unprofitable strategies, surviva l chances, organizationa l competence, and

knowledge resources. The qualitative study probed beyond a one-subject analysis and combined 12 areas

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as identified in the research. The general population consisted of small bus iness owners in the United

States.

Purpose of the Study

The purpose of this qua litative case study was to explore how small bus iness owners pursue

marketing, understand why decisions are made, how decisions relate to marketing strategy, and what

influences affect their small business. Business owners have product or service knowledge of what is

being offered to customers but are not experts in the field of marketing and therefore struggle with

implementing strategic planning, a marketing plan, and other elements necessary for success (Hisrich,

2008; Simpson et al, 2004). More specifically, small bus inesses struggle due to lack of marketing

knowledge and also because when they do seek help, they also struggle to understand if the knowledge

they have sought out is worthwhile to the success of their business (Bovee, Thill, & Mescon, 2007); for

example, some sma ll bus iness owners may purchase a book from their local bookstore and cons ider it to

be the guiding force, while another small business may believe a strategic alliance with a larger company

is the only strategy needed because it was suggested in a workshop. In the examples provided, neither

business may have the background in marketing to judge the quality of information that is guiding their

marketing strategy efforts which will ultimately affect their business success. The researcher explored the

problem of why small business owners struggle with marketing and the focus was on small bus iness

marketing strategy. The general population cons isted of small business owners in the United States.

The researcher selected a group of 20 participants, who reside in the United States, and conducted

taped in-depth interviews. The efforts of small bus iness marketing strategy was generally defined as

pursuing efforts to create, communicate, and deliver value to consumers.

RESEARCH QUESTIONS

The researcher explored the process that small businesses pursue in creating marketing

strategy for their firm:

Q1: How does the small business pursue marketing?

Q2: What types of resource advantages and disadvantages exist for a small business

owner?

Q3: What makes the small business owner competitive?

Q4: How important are business partnerships and alliances to the small business owner?

Q5: How does a small business formulate market segment strategy?

Description of Rese arch Des ign

The method of research consisted of exploratory research in a case study method obtaining

information from a purposeful sample of 20 small bus iness owners, all adults over the age of 18, in the

United States. The participants were selected by the researcher to explore marketing strategy efforts in

small bus inesses. Depth interviews were conducted, gaining know ledge about how small bus iness owners

pursue marketing, why decisions are made, how it relates to marketing strategy, and what influences

affect their small business. The viability of conducting a case study can be affirmed through a qua litative

exploratory study designed to ask participants how and why questions which provides for more in-depth

analysis (Lupinacci, 1996; Yin, 2005). Case studies are designed for when the researcher has very little

control over events or the focus is on a contemporary phenomenon (Yin, 2005). The failure rate of new

businesses in the US is a contemporary phenomenon. In 2006, there were 649,700 new businesses and

564,900 existing bus inesses that closed (SBA, 2008a). Nearly 50% of all s mall businesses close within

the first five years (SBA, 2008b).

An additiona l advantage to conducting depth interviews is that the interviewer was considered an

expert in the field, and was understood by the respondents as such (Zikmund, 2003). A depth interview

allows more freedom of expression without the interviewer directing responses which would ultimately

bias the data (Yin, 2005). The questioning allows for greater depth, insight, and illumination (Shank,

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2006). In addition, the study focused on what an experience meant for the participants (Schram, 2006). In

this method of inquiry, the researcher sought to convey meaning that is fundamental to the experience, no

matter which individual had the experience (Creswell, 2008; Y in, 2005).

Highlights and Limitations of Methodology

The case study research method was the optima l design for the study. The methodology chosen was

not dr iven by a preconceived theoretical construct and research hypothesis; it was an intention to

explicate a given phenomenon (Pietersen, 2002). In a quantitative study, the researcher is interested in the

relationships between independent and dependent variables; this case study was designed to discover the

perceptions of small bus iness owners when pursuing marketing strategy. The inquiry focused on common

themes within similar human perceptions, versus perceptions which might be presumed as universally

shared (vanManen, 2002). The reduction, rather than a cause-and-effect relationship analysis, revealing

themes that have specific perceptions, and these themes will lead to an analysis which is more than

theoretical or conceptual abstraction (Yin, 2005).

The case study involved a process that focused on reducing partic ipants’ experiences with owning a

small bus iness and marketing the ir product/service. The data analysis was intuitive and interpretive,

focused on discovering common themes from the interview questions which related to the primary

research questions. The recovery of perception allowed creation of common themes as they related to the

study research questions.

The recovered meanings in the study were derived from the participants’ experiences in owning their

own small bus iness and how marketing strategy was pursued, reduc ing the meanings to common themes,

and consequently applying the data to the study research questions (Yin, 2005). The most substantial

limitation of the qualitative study was related to interpreting the participants’ perceptions. If the

researcher did not leave behind bias, preconceived ideas, or prejudgments which surround the

phenomenon, then there could have been a risk that a true interpretation was inhibited or disqua lif ied.

Limitation also related to reliability. If the methods and procedures chosen were not documented and

implemented consistently, interpretation and translation would not have been reliable.

Summary and Conclus ions

As a result of this qualitative case study, new research can be available in marketing or management

literature representing a qualitative analysis of small bus iness marketing efforts. Understanding how and

why small bus iness owners make marketing decisions aids in deve loping strategies to assist in small

business marketing efforts. Further, best practices and guidelines in the form of journa l artic les, papers

presented at conferences, and books, can provide needed knowledge addressing small bus iness owners

and their marketing efforts through deve loping sound marketing strategies that are viewed by the small

business owner as realistic.

The results of the study can provide recommendations to practitioners on how to raise the awareness

while educating small business owners on the importance of marketing: that small business success can

be improved with marketing, that small bus inesses need quality marketing know ledge, and that financ ial

concerns may be a prohibitive for small bus iness owners actively engaging in marketing. In addition, a

result of the study will determine realistic marketing for the small business and provide direction for

creating a marketing plan with sound strategies, thus increasing market share.

Policy could be addressed by understanding how sma ll bus inesses search out knowledge and

incorporate it into the ir firm and how they improve the quality of knowledge and training.

Recommendations can be presented in the form of literature to academic peer reviewed journals,

conference presentations, organizations in the Greater Omaha, Nebraska area, inc luding the Chamber of

Commerce, United States Small Business Administration, and professiona l marketing groups, including

the American Marketing Association and the Mid-America Direct Marketing Association, as well as

informing future MBA marketing strategy students of the importance of formulating sound realistic

marketing strategies for small businesses.

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LITERATURE REVIEW

The literature review inc luded researching small bus iness marketing in scholarly journa l articles

where the data was dependent on a variety of collection methods including: primary data in various

forms, secondary data from published books and journa l articles, conference papers, and expert

experience among others. Dissertation studies were also explored as a means of research. The majority of

dissertation case study research did not fall w ithin the five year time period and, therefore, was excluded.

Research from Y in (2005) was explored and the questions of how and why small businesses pursue

marketing strategy were researched (Yin, 2005). The research was divided into the sub-topics of

networking, firm resources and sustained competitive advantage, resource disadvantage, competition and

cooperation, growth, business partnerships and a lliances, stakeholders, strategies, profitable and

unprofitable strategies, survival chances, organizationa l competence, and knowledge resources.

Methodology

Small business marketing strategy was explored through bus iness owners who have a consistent

knowledge of the ir product or service and are not cons idered experts in the fie ld of marketing; such

business owners struggle with how to implement strategic planning, a marketing plan, and other elements

necessary for success (Day, 2000). More specifically, small bus inesses struggle due to lack of marketing

knowledge that is aimed at understanding specific marketing problems (Freeman, 2000). When small

business owners seek help, a struggle exists to understand if the knowledge they have sought out is

worthwhile to the success of their business (Day, 2000).

Description of Rese arch Des ign

The method of research consisted of exploratory research in a qualitative case study method obtaining

information from a purposeful sample of 20 small bus iness owners, all adults over the age of 18, in the

United States. In gathering data, the sources of evidence were gathered from interviews (Yin, 2009). The

participants were selected by the researcher to explore marketing strategy efforts in small businesses.

Individual depth interviews were conducted, gaining knowledge about how small business owners pursue

marketing, why dec isions are made, how it re lates to marketing strategy, and what influences affect their

small business.

The three principles of data collection were used by the researcher including: multiple sources of

evidence, creating a case study database, and ma intaining a chain of evidence (Yin, 2009). During the

process of coding and creating themes, all codes were created by hand. Eight analysis steps were followed

by the researcher including: (a) deve loped familiarity with the 20 transcripts by listening to the tapes and

reading each transcribed interview; (b) created individual thematic code for each transcribed interview;

code list with other coded lists creating one final code list; (e) created a theme dictionary; (f) totaled

codes; (g) applied codes to themes; (h) summarized the themes across questions (Yin, 2005).

An additional advantage to conducting depth interviews is that the interviewer is considered an expert

in the field, and will be understood by the respondents as such (Zikmund, 2003). When a depth interview

is conducted, it allows more freedom of expression without the interviewer directing responses which

would ultimate ly bias the data.

The purpose of this case study is to understand the decisions and actions a small bus iness owner takes

when pursuing marketing through networking, firm resources and sustained competitive advantage,

resource disadvantage, competition and cooperation, growth, business partnerships and alliances,

stakeholders, strategies, profitable and unprofitable strategies, surviva l chances, organizational

competence, and knowledge resources.

Selection of Participants

All partic ipants in the study were adults over the age of 18 and owned a small business, either

individually, or with no more than one other person. The participants were selected by the researcher and

pre-screened to include only those who had completed no more than the one required core marketing

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course in their undergraduate, and/or one required core graduate marketing course. Most academic

institutions that are accredited by the Higher Learning Commission have one core marketing course as

part of the core curriculum in an undergraduate or graduate business program. Part of the criteria for

being selected was that the participants did not have a marketing concentration, emphasis, minor, or ma jor

in marketing. The participants could not be employed as a marketing professiona l either by education or

experience.

The participants could not have a personal family relationship with the researcher. The researcher

contacted the Sarpy County Chamber of Commerce in Papillion, Nebraska and asked for names, and also

completed cold-calls to a variety of businesses in the Omaha, Nebraska area. A snowball approach was

used whereby selected participants, who were aware of the participant criteria, also recommended

possible interviewees who were screened by the researcher (Yin, 2005). A goal of the researcher was to

have 20 total participants who were from a variety of fields and who were not all of the same gender.

However, it was not a goal of the researcher to have total equality among participant’s gender. A total of

44 participants were initia lly screened, and 22 participants were interviewed. A total of 20 interviews

were available for analysis due to 2 tapes being destroyed due to a faulty tape.

The justification for selecting partic ipants who were not experts in the field of marketing was a

reflection on society in general where small business owners may have product or service knowledge but

are not experts in the field of marketing (Kotler, 2004). All partic ipants were made aware of the informed

consent which follows: research purpose, research procedures, risks, benefits, alternatives, confidentiality,

and disc losure of potential conflict of interest, contact information, and withdrawal.

Procedures

The 44 potential partic ipants were initia lly contacted by phone and screened. Once it was deemed that

the individual could participate in the study, a date and time was set to conduct the interview. Prior to the

interview, the researcher asked the participants to be in a quiet room with no distractions which was

adhered to by all who took place in the study. The participants signed a release form that was returned to

the researcher before the interviews took place. All interviews were conducted via telephone with a tape

recorder that was plugged into the researcher’s phone line. When the interview started, the company

number, 1 through 20, was announced by the researcher and participants were reminded that the

conversation was recorded and what their rights were. The interviews ranged from 60 to 90 minutes in

length. After the interview concluded, each participant’s interview was transcribed into a Microsoft Word

document.

Expe rie nce

A goal in selecting participants was having equa lity among participants in the ir knowledge of

operating a small bus iness and of marketing in general. A variety of ownership ranging from few years of

experience to many years of owning a business was the expectation of the total group; however, the final

selection was determined by the participants’ willingness to be interviewed and that could have ultimately

determined experience by default of who agrees to participate.

Small Business Owner

An assumption in the research study was that each participant was an owner of a small business. The

ownership of the bus iness was supposed to be either solely, or at most, a partnership with one other

person. Potential participants who own part of a business with more than one other person were excluded,

as were those who owned a business for investment purposes but did not run the day-to-day operations. If

a research participant had served in a management position, in a small, medium, or large business, prior to

owning the small bus iness, that person was not excluded but it could have affected the final outcome of

the research study.

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Gende r and Age

Research participants were not selected according to gender or age, but that may have ultimately

influenced the study. A mixed gender and age population over the age of 18 was a goal of the researcher

that was rea lized. After the init ia l qualif ications were met, and if t he partic ipants were not equal in age

and gender, or representative of various ages, it would have influenced the study.

Geographical

A limitation to the study was that the majority of participants were selected from the greater Omaha,

Nebraska area which could have influenced the study.

Sampling

In gathering data, the sample size was limited to 20 typed interviews from 22 partic ipants, and may

have limited the research due to sample size (Trochim, 2001). The researcher used purposeful sampling

strategies appropriate for a case study where the data was collected and managed in a systematic process

(Yin, 2009). Questions were clearly written and appropriate for the research questions (Yin, 2009). The

case study strategies in sampling promoted credibility or truth value (Yin, 2009).

Ethical Assurances

There was a slight risk the participant may have unknowingly disclosed his or her firm’s name during

the interview and the person performing the transcriptions would have heard this when typing the

research data; therefore, a confidentiality agreement was constructed which addressed that any and all

information ga ined dur ing the research process was confidentia l and could not be shared with an outside

party unless deemed by law. The researcher will destroy all data collected after three years when the study

was completed.

FINDINGS

Themes

A total of six themes emerged from the codes recorded and are indentified in Table 1, along with the

codes within each theme. Selected examples of questions and codes appear in Appendix C, Transcript

Coding: Questions and Selected Examples. All 39 codes were put into themes with the most individual

codes being in the theme of formulating strategy which ranked at 10 various codes in the theme. The

theme marketing ranked second with nine various codes being recorded in the theme. The themes of

values and needs followed with eight various codes each. The strength theme was the lowest with six

various codes.

In Table 1, the marketing theme represented the largest number of codes. The second highest number

of codes was in the theme of strengths. Following was the themes of formulating strategy and va lues that

both ranked equally. The lowest theme was needs. It is interesting how there is one higher percentage at

29 percent, one low percentage at 13 percent and three in the middle with one at 20 and two at 19 percent.

TABLE 1

TRANSCRIPT THEME ANALYSIS

Theme: Codes:

Marketing Chamber-25, Networking-48, Customers-27,

Friends-14, Opportunity-12, Parnership-13,

Relationship-34, Small Business-10, and

Training-6

Formulating Strategy Alliance-9, Competition-17, Ideas-5, Internet-5,

Information-19, Knowledge-16, Networks-8,

Organization-12, Profit-9, and Strategy-21

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Strengths Customers-27, Competitive Advantage-13,

Experience-30, Personable-11, Service-30, and

Niche-22

Values Advantages-11, Business-48, Employees-16,

Family-10, Group-11, Trust-13, and Survive-12

Needs Cash Flow-19, Education-12, Financial-12,

Growth-6, Technology-16, Marketing-14, and

Money-7

Codes, Themes, and Values

In Table 2, the themes are listed with the various codes identified in each of the columns. The theme

formulating strategy had the most codes at 10. Marketing was the second highest theme with nine overall

codes. The themes of values and needs both had seven codes. The theme of strengths has the least amount

of codes at six.

TABLE 2

IDENTIFIED CODES, THEMES, AND VALUES

Themes

Marketing Formulating

Strategy

Values Strengths Needs Total Themes

25 9 27 11 19

48 17 13 48 12

27 5 30 16 12

14 5 11 10 8

12 19 30 11 16

13 16 22 13 14

34 8 12 7

10 12

6 9

Total: 189

29%

Total: 121

19%

Total: 133

20%

Total: 121

19%

Total: 88

13%

Total: 652

100%

Marketing

The marketing theme received the largest overall total codes, which added up to 189 or 29%.

Strengths were second with 133 tota l codes, or 20%. Formulating strategy and values were equal, with

121 codes each, or 19%. The needs theme ranked last at 88 total codes, or 13% total. Out of all themes

identified, the percentages ranged from 13 to 29%, with some notable differences between the lowest and

highest, but the middle section has one theme, strengths, at 20%, and two others which were formulating

strategy and values at 19%.

Overall, the theme of marketing was the most important to the participants interviewed ranking at

29%. The three themes of strengths at 20%, formulating strategy at 19% and values at 19% were grouped

in the middle and almost equally important to the participants. Needs was deemed the least important by

the interviewees at 13%. It is noteworthy to emphasize that the participants highly valued marketing at

29%, and almost equa lly va lued three main themes which were strengths at 20%, formulating strategy at

19%, and values at 19%. The theme of needs ranked the lowest at 13%.

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Summary

There were five findings in the research study. The finding of marketing answered the research

questions 1 and 4. The finding of formulating strategy answered questions 3 and 5. The strengths theme

answered question 2. The values finding answered question 4. The needs theme answered question 2. Of

note is that question 2 was answered by the findings of strengths and needs. Question 4 was answered by

the findings of marketing and values. Five themes emerged from the in-depth interviews: marketing,

formulating strategy, strengths, values, and needs. The research questions along with the summarized

findings follow.

Research Questions:

Q1: How does the small business pursue marketing?

Q4: How important are business partnerships and alliances to the small business

owner?

The theme of marketing addressed the how and why small business owners pursue marketing which

was through networking and attending networking events such as chamber and other events. Business

partnerships and a lliances were formed through the networking events, but also through customers,

friends, and other business acquaintances. The small business owners utilized a collective process that

more people equal better opportunities. Although the owners were adept at networking and forming

business partnerships and alliances, the owners thought the ir marketing abilities were lacking or non-

existent. For the most part, the owners did not comprehend that networking and forming bus iness

partnerships, and alliances were a form of marketing.

Research Questions:

Q3: What makes the small business owner competitive?

Q5: How does a small business formulate market segment strategy?

The formulating strategy theme addressed what makes the small business owner competitive and how

the small bus iness formulates market segment strategy. Information, that was shared among networks,

along with studying and understanding competitors, were deemed as sources of competitiveness. The

participants would study their competition and often make decisions based on what had been successful

for another small business.

Q2: What types of resource advantages and disadvantages exist for a small business

owner?

The strengths theme evolved from resource advantages and the needs theme emerged from resource

disadvantages. Experience in running a business, or experience with the pr oduct or service be ing offered

in the market, was noted as a source of strength. Other strengths included offering excellent customer

service and the devoted customers that followed. The respondents noted that having a personable staff

was also a resource advantage. Disadvantages were associated with the needs theme and cash flow was

the largest code. Technology was noted as being a resource disadvantage as was marketing. It was an

assumption among the small bus iness owners that they did not undertake marketing and it was a

disadvantage. The participants did not cons ider networking and forming business partnerships and

alliances as marketing when, in fact, they are a form of marketing.

Q4: How important are business partnerships and alliances to the small business

owner?

The values theme emerged through the business partnership and alliances question. The participants

considered other businesses as a source of value and trust was paramount in the relationship. What was

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most interesting about this question was that although the small bus iness owners were willing to assume a

great deal of risk in starting and continuing a small business, they were not willing to extend risk in

financ ially associating the ir company w ith another small, medium, or large f irm. The sma ll business

owners would collaborate with another firm but wanted all financ ial endeavors to be separate. Even when

the finances were separate, if there was not trust in the partnership or alliance, the small business owner

did not want to align with the other business.

RECOMMENDATIONS

Marketing Education

Many of the small bus iness owners received continuing education through their area Chamber of

Commerce, although many a lluded to the fact that the primary reason for membership was networking.

Many Chamber of Commerce meetings cons ist of learning sessions that are inexpensive in nature and

provide an opportunity for the sma ll bus iness owner to gain know ledge on a particular subject. However,

the know ledge that is available to the small business owner needs to be analyzed for effectiveness. The

programming and content need to be assessed to see if it is meeting the goa ls of the community which it

serves, and further research should be conducted in this area. As represented in Table 4, a total of 30

small bus iness owners were asked during two separate training sessions at the Greater Omaha Chamber of

Commerce and the Bellevue Chamber of Commerce, both in Nebraska, what marketing topics they were

interested in for future training sessions which appears in Appendix E.

Training

The small business owners were willing to be trained and pursued training through professional

organizations inc luding the area Chamber of Commerce. During the interview process, many regarded the

training as being very good to excellent, but further inquiry about who was conducting the training and

the skill or knowledge level of the trainer was unknown by many of the participants. As with many

organizations, the training sessions are run by volunteers who may or may not have the skills to design a

training program that is truly effective for small business owners. A recommendation for organizations

and Chambers is to have certified trainers or academic professionals chair, plan, and participate in

training that is offered to small businesses.

Competition

An area of training for the small business owner is understanding competition and competitive

analysis. The small business owners need to comprehend how to assess competitors and create a plan of

action. The owners need knowledge of developing strategies beyond a six-month time frame and integrate

long-term strategies as part of an overall strategic plan. The owners need knowledge of creating a

marketing plan, deve loping realistic strategies, controlling measures, and evaluating effectiveness.

Business Partnerships and Alliances

Further research needs to be conducted on why sma ll businesses are not willing to enter into an

alliance where they are financia lly dependent upon another business. Risk is a factor in owning a small

business, but yet the owners were not willing to extend risk to a relationship and be financially dependent

upon another business. Trust was paramount in all re lationships and an integra l part of conducting

business but yet it was not extended to a second party when finances were shared. Further research needs

to explore why small bus iness owners will not enter into financ ial partnerships and alliances with other

firms.

Strategies

During the interview process, most participants discussed formulating strategy for a time frame of six

months or less. The consensus was that the results of the strategy would be evident by that time. Research

needs to be conducted to find out why small business owners only plan for six months or less. Research

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should explore what effects short-term and long-range planning can have on the small business owner.

Future research should be explored on how a small business owner creates long-term strategic planning

and the affects of revenue and longevity.

Knowle dge Resources

Future research should explore what knowledge sources are available to a small business owner and if

the know ledge sought assists the sma ll bus iness owner in making sound marketing decisions for the

business. Conducting research to find out where and when the owners seek out knowledge is pertinent to

the study of developing strategy. Researching why the owners seek out knowledge and what types of

sources are available should be explored.

Networking

Research should explore networking and how it can be the primary, and only, source of marketing for

the small business owner. Research should focus on why small bus iness owners pursue networking, what

advantages exist within the network groups, what influence the network group has on members, plus

when an owner joins, and abandons the group.

Women Entrepreneurs

Future research should be conducted on women entrepreneurs and owning a small business. Women

represent slightly more than one-third of all entrepreneurial activity (Allen, Elam, Langowitz, & Dean,

2008). Between 1997 and 2002, firms that were owned by women increased by 19.8%, while all firms in

the U.S. grew by seven percent (Score, 2008). In 2002, women owned 6.5 million businesses that

generated $940.8 billion in revenues (SBAa, 2008). Women entrepreneurs employed 7.1 million workers

and had payroll of $173.1 billion (SBAa, 2008). There are various challenges facing women

entrepreneurs such as access to credit, capital and equity, gender discrimination and stereotyping, dual

career-family pressures and lack of equal opportunities in certain industries (Score 2008; Wolfe, 2008).

Social Capital

Since small business owners engage in informal and formal networking as an integral part of

marketing, soc ia l capita l should be studied further. Social capital is complex and involves connections,

influence, reputation, accomplishments, reciprocity, and access. Through relationships, access to ideas,

resources, and the potentia l for future access to further resources is central to those who engage in

building social capita l. Bridging and bonding capita l can be part of socia l capital and can provide

opportunities to connect to various industries and the depth of c loseness in connections. Relationships are

considered pivota l to the small bus iness owner, so building, leveraging, and mainta ining socia l capital

would be symbiotic in assisting small business owners and should be studied further.

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