Empirical Analysis of the Survival Factors Contributing to the Survival of Small Businesses

Abstract

In today's uncertain economic climate, the priority for small businesses is survival. The focus of this quantitative and cross-sectional study was to estimate the survival of small businesses in rural areas from the perspective of marketing strategies, adoption of new technology, flexible tax policies, and Legal aspects. To test empirical relationships between independent and dependent variables, a self-administrated cross-sectional survey was conducted among the small business owners in the Sukkur for collection of primary data through the adopted Likert scale questionnaire. In total 384 Small business owners were randomly selected for the collection of primary data. Using SPSS, the data were analyzed here correlation and regression analysis were computed. It has been found that the use of new technology, marketing tactics, flexibility in legal aspects, and flexible tax rules may help small businesses survive in the economy. The study may conclude that if modern technologies were introduced to Sindh’s small-scale industries, it would assist such companies to thrive in today's cutthroat economic climate. Additionally, entrepreneurs must take the necessary time to understand the risks of failure and acquire the necessary tools to increase their chances of success. It is also found that there is a high co-relationship between the predictors with the dependent variables so it is quite clear that the Government must take some important measures to reduce legalizing barriers, adopt a flexible tax structure, and provide training facilities to the owners of Small Business in adoption of new technology and marketing strategies for their business.