Walden University

College of Management and Technology

This is to certify that the doctoral study by

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IE John C. Nwabueze

has been found to be complete and satisfactory in all respects,

and that any and all revisions required by
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the review committee have been made.

Review Committee
Dr. Ify Diala, Committee Chairperson, Doctor of Business Administration Faculty
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Dr. Salah Atieh, Committee Member, Doctor of Business Administration Faculty

Dr. Deborah Nattress, University Reviewer, Doctor of Business Administration Faculty

Chief Academic Officer

Eric Riedel, Ph.D.

Walden University
2019
 Abstract

Strategies to Sustain Small Accounting Businesses for Longer Than 5 Years

by

John C. Nwabueze

MS, Strayer University, 2008

BS, Strayer University, 2005

BS, University of Jos, Nigeria 1986

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Doctoral Study Submitted in Partial Fulfillment

of the Requirements for the Degree of

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Doctor of Business Administration

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Walden University

June 2019
 Abstract

Small businesses represent over 99% of all United States businesses and are engines of

economic growth and job creation. In 2018, the Small Business Administration estimated

that a total of 30.2 million small businesses employed over 58.9 million workers. Small

businesses are known to face significant challenges, and most fail within 5 years of

startup. The purpose of this multiple case study was to explore strategies that owners of

small accounting businesses used to sustain their organizations for longer than 5 years.

The population in this study consisted of 5 owners of small accounting businesses in

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Michigan. The conceptual framework for the study was human capital theory. Data were

collected through face-to-face, semistructured interviews and review of documents. The

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analysis of collected data yielded themes that included market research and competitive

analysis, excellent customer service, passion for accounting and arduous work, and
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retention of skilled and competent employees. The findings of this study may be applied

to bringing about positive social change by enhancing small business owners’

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competence and promoting business growth. Additionally, the use of the results of this

study may promote economic activities and sustainability by stimulating job creation and

reducing unemployment.
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Strategies to Sustain Small Accounting Businesses for Longer Than 5 Years

by

John C. Nwabueze

MS, Strayer University, 2008

BS, Strayer University, 2005

BSc, University of Jos, Nigeria, 1986

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Doctoral Study Submitted in Partial Fulfillment
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Doctor of Business Administration

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Walden University

June 2019




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 Dedication

I dedicate this to my late parents, Fidelis and Rose Nwabueze. Thank you both for

your unwavering love and all that you did for me. To my wife, Dr. Ife, and my children

(the crew), Ashlea, Kayla, and Emily, you guys are the best, thanks for your love and

support. To my brothers and sisters, Justina (of blessed memory), Mary (of blessed

memory), Kate, Austin, Ann, Vincent, and Dr. Schola, thanks for your inspiration,

support, and encouragement.

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 Acknowledgments

To God be the glory for this milestone in my life. I am especially grateful to my

committee chair, Dr. Ify Diala, for her guidance, mentorship, encouragement, and

inspiration. A special thank you to my second committee member, Dr. Sam Atieh, and

my University Research Reviewer, Dr. Deborah Nattress, for your feedback, support, and

leadership. To the entire DBA faculty and staff, academic advisors, and all my

classmates, thank you for your invaluable support in my doctoral journey.

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 Table of Contents

List of Tables .......................................................................................................................v

Section 1: Foundation of the Study......................................................................................1

Background of the Problem .......................................................................................... ii

Problem Statement .........................................................................................................2

Purpose Statement ..........................................................................................................3

Nature of the Study ........................................................................................................3

Research Question .........................................................................................................5

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Interview Questions .......................................................................................................5

Conceptual Framework ..................................................................................................6

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Operational Definitions ..................................................................................................6

Assumptions, Limitations, and Delimitations................................................................7

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Assumptions............................................................................................................ 7

Limitations .............................................................................................................. 7
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Delimitations ........................................................................................................... 8

Significance of the Study ...............................................................................................8

Contribution to Business Practice ........................................................................... 9

Implications for Social Change ............................................................................... 9

A Review of the Professional and Academic Literature ................................................9

Conceptual Antecedents in Literature ................................................................... 12

Alternative Theories to Human Capital Theory.................................................... 13

Environment and Marketing ................................................................................. 15

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 Strategy, Innovation, and Operational Business Planning .................................... 17

Potential Challenges to Small-Business Owners’ Success and Failures .............. 19

Personal Characteristics and Leadership Styles .................................................... 21

Networking and Innovation Management ............................................................ 22

Small Business Financing ..................................................................................... 23

Entrepreneurial Orientation .................................................................................. 25

Risk Management ................................................................................................. 28

Entrepreneur Education and Training ................................................................... 32

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High-Performance Work Ethic ............................................................................. 34

Regulation and Business Performance.................................................................. 37

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Transition .....................................................................................................................39

Section 2: The Project ........................................................................................................40

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Purpose Statement ........................................................................................................40

Role of the Researcher .................................................................................................40

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Participants ...................................................................................................................43

Research Method and Design ......................................................................................44

Research Method .................................................................................................. 44

Research Design.................................................................................................... 45

Population and Sampling ...................................................................................... 47

Ethical Research.................................................................................................... 49

Data Collection Instruments ........................................................................................51

Interview ............................................................................................................... 52

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 Archival Records .................................................................................................. 52

Reliability and Validity Process............................................................................ 52

Data Collection Technique ..........................................................................................53

Interview ............................................................................................................... 53

Archived Records Review .................................................................................... 54

Data Organization Technique ......................................................................................55

Data Analysis ...............................................................................................................56

Compiling ............................................................................................................. 57

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Disassembling ....................................................................................................... 57

Reassembling ........................................................................................................ 58
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Interpreting ............................................................................................................ 58

Concluding ............................................................................................................ 59
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Use of Software..................................................................................................... 59

Reliability and Validity ................................................................................................60

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Reliability.............................................................................................................. 60

Validity ................................................................................................................. 61

Data Saturation...................................................................................................... 63

Transition and Summary ..............................................................................................63

Section 3: Application to Professional Practice and Implications for Change ..................64

Introduction ..................................................................................................................64

Presentation of the Findings.........................................................................................65

Theme 1: Market Research and Competitive Analysis......................................... 67

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 Theme 2: Good Customer Service ........................................................................ 71

Theme 3: Passion for Accounting and Possession of Proper Management

Skills ......................................................................................................... 74

Theme 4: Retention of Skilled Employees ........................................................... 76

Applications to Professional Practice ..........................................................................78

Implications for Social Change ....................................................................................79

Recommendations for Action ......................................................................................81

Recommendations for Further Research ......................................................................82

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Reflections ...................................................................................................................83

Conclusions ..................................................................................................................84
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References ..........................................................................................................................85

Appendix A: Interview Questions ...................................................................................120

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Appendix B: Interview Protocol ......................................................................................121

Appendix C: Letter of Invitation......................................................................................122

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iv
 List of Tables

Table 1. Summary of Literature Reviewed by Year of Publication ..................................11

Table 2. Demographic Information of Accounting Business Owners ...............................67

Table 3. Participants’ Market Research and Analysis .......................................................70

Table 4. Good Customer Service and Employee Relationships ........................................73

Table 5. Retention Management Strategies .......................................................................78

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v
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Section 1: Foundation of the Study

Small businesses represent a significant engine of economic growth and job

creation and play an important role in the U.S. economy (Johnson, 2017). Small

businesses account for 55% of all jobs in the United States and 66% of newly created

positions (U.S. Small Business Administraton [SBA], 2014). Small business owners

work hard to take advantage of the economic downturn to improve the U.S. economy

(U.S. Bureau of Labor Statistics [BLS], 2011). However, small business owners still face

many challenges linked to high business failure rates in the United States (Perry, 2012).

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According to Johnson (2017), small-business owners know their products or services;
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however, they typically lack the skills needed to develop strategic and operational

business plans. Over 60% of small business owners fail to succeed in business beyond 5
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years (SBA, 2015). Williams and Williams (2014) interpreted the rate of small business

failure as support for the assertion that some people embark on small business initiatives

without adequate preparation. Small business owners may lack knowledge and skills in
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areas such as business planning, entrepreneurial characteristics, motivation, resource

management, human and social capital, strategic management, education, and

management training. They may also lack an understanding of cultural capital and its link

to social capital, financial capital, and geographic location.

In this study, I explored key strategies used to sustain small accounting businesses

for longer than 5 years in the Detroit metropolitan area in Michigan. The focus of the

study was on the factors that enable small accounting businesses to be sustainable. In this

section of the study, I discuss and provide background on the business problem, the
 2
purpose of this study, the research question, theory framing the study, and the importance

of the study. Additionally, I review current literature related to the business problem.

Background of the Problem

Investors face considerable risks in providing financial assistance to new small-

business owners. Cheng (2015) concluded that financers use governance as one of many

criteria to determine business creditworthiness and bank lending processes for small

businesses. Therefore, new small-business owners face challenges associated with

financing a new business launch (Vasilescu, 2014). Malmstrӧm (2014) discussed how

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small-business owners seek innovative methods of resourcing. One innovative approach
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is the use of bootstrap financing to stretch existing resources without obtaining external

funding. Those who finance new entrepreneurships capture new markets and make the
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economic segment attractive (Block, Colombo, Cumming, & Vismara, 2018).

Bootstrapping can include delaying self-compensation and using existing

household resources, as well as human capital, talent, and support from family and
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friends. Cheng (2015) concluded that because small business owners face substantial

challenges in obtaining external financing, they typically use owner resources or

bootstrap financing. Owner resources may include home equity or mortgage loans,

savings, or a personal credit card used for expenses associated with the business.

Problem Statement

Over 60% of small business owners fail in business beyond 5 years (SBA, 2015).

Small businesses made up over 99% of US employers and accounted for over 66% of net

new jobs created between 2000 and 2017 (SBA, 2018). The general business problem

was the high rate of failure of small businesses. The specific business problem was that
 3
some small accounting business owners lack strategies to achieve sustainability for

longer than 5 years.

Purpose Statement

The purpose of this qualitative multiple case study was to explore strategies that

small accounting business owners use to achieve sustainability for longer than 5 years.

The participants in the study included five small accounting business owners in the

Detroit metropolitan area comprised of Wayne, Oakland, and Macomb Counties in

Michigan. The research participants’ firms had achieved sustainability for longer than 5

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years and had 50 or fewer employees. The findings from this study may contribute to
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positive social change through the provision of strategies for small business owners to

sustain their enterprises for longer than 5 years, which may, in turn, improve the
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economic activities and prosperity of communities through the growth of small

businesses and accompanying job creation.

Nature of the Study

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There are three research methodologies: qualitative, quantitative, and mixed

method (Flick, 2015). Qualitative research is a method of inquiry used by researchers

seeking to gain an in-depth understanding of human behavior and to examine why and

how questions related to decision making (Bahn & Weatherill, 2013). Further, Leedy and

Ormrod (2013) stated that qualitative research is used to address a phenomena that are

impossible to quantify mathematically or with statistical procedures. Thus, according to

Leedy and Ormrod, the underlying assumption of qualitative study is that by taking a

holistic view of events, philosophies, and methods based on real-world experiences, a

researcher can develop a more comprehensive understanding of a phenomenon.

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Quantitative research is numbers-based, and researchers use this methodology to

examine probable relationships between variables. A quantitative method involves

analysis of statistical data but does not afford the researcher a deep understanding of a

phenomenon (Spillman, 2014). A mixed-method study entails the use of both quantitative

and qualitative methodologies to generate findings (Vaitkevicius & Kazokiene, 2013). I

did not use the quantitative method or mixed methods because this research study did not

require testing of hypotheses and interpretation of statistical functions. The qualitative

method was the most appropriate for exploring strategies that small accounting business

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owners use in sustaining their businesses for longer than 5 years.
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In qualitative research studies, researchers have the option of using any of the

following main designs: (a) ethnography, (b) phenomenology, (c) case study, (d)
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narrative, and (e) ethnography (Petty, Thomas, & Stew, 2012). For my qualitative study, I

considered the following four designs: phenomenology, narrative, ethnography, and case

study. Researchers use the phenomenological design in the interview process to

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understand a phenomenon that several people experience over a period (Yin, 2014) and to

capture the meanings of individual lived experiences of a common phenomenon

(Berglund, 2015). I did not use phenomenological design because I did not seek to

explore the meanings of lived experiences of people and how participants perceived a

phenomenon. The narrative method involves exploring experiences of individuals and

obtaining participants’ information in a chronological format (Yin, 2014). Thus, narrative

design was not appropriate for this study. According to Phakathi (2013), ethnographic

design is appropriate for exploring the shared patterns of behavior, beliefs, and language

within a cultural group. Thus, the ethnographic design was not suitable for this study
 5
because the focus of the research was on small accounting business owners’ strategies

rather than on the culture of a certain people.

The case study design is a viable means of researching emerging ideas from

multiple sources, allowing researchers to discover in-depth information on events in a

real-life context (Fusch, Fusch, & Ness, 2016). According to Yin (2014), case study

design is useful for gathering participants’ insights and views through open-ended

questions. Thus, the case study approach was the most appropriate method for this study

and for identifying the specific business problem using multiple sources.

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Research Question
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What strategies do small accounting business owners use to achieve

sustainablility for longer than 5 years?

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Interview Questions

1. What strategies did you use to achieve sustainability for longer than 5 years?

2. How did you measure or otherwise assess the effectiveness of those strategies?
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3. How did your business mission and vision influence the strategic process?

4. What strategies have been the most critical to achieving sustainability?

5. What challenges have you encountered, that, if not overcome, would have

prevented you from achieving sustainability?

6. How did you address those challenges?

7. What more would you like to share concerning the strategies that enabled you to

be successful for longer than 5 years?

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Conceptual Framework

The conceptual framework for this study was the human capital theory (HCT)

introduced by Gary Becker in 1962. HCT deals with the principle of human resources

management and focuses on individuals’ knowledge and skills that an organization may

use to further its goals. Wright, Coff, and Moliterno (2014) noted that HCT explains the

importance of skills, knowledge, training, and education as strategies that enhance the

sustainability of a business.

HCT involves the understanding that knowledge, talents, skills, abilities,

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experience, intelligence, training, judgment, and leadership skills are attributes of a
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successful business owner. According to Becker (1962), the fundamental concepts of

HCT theory are (a) on-the-job training, (b) advanced education, (c) higher earnings, and
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(d) economic growth. The principle of human capital involves recognition of the

capability of skilled employees in addition to an understanding that investing in

employees, in terms of education and experience, can improve output and the economic
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value of employers and the economy. Omri, Frikha, and Bouraoui (2015) discussed HCT

as it relates to practical leadership skills as essential attributes of a successful business

owner. Small accounting business owners who adopt the concept of HCT recognize that

employees’ knowledge, skills, assets, and experience are necessary for the sustainability

of a small business for longer than 5 years.

Operational Definitions

Business sustainability: The maintenance of attributes that enable continued

running of a business system (Wright, Coff, & Moliterno, 2014).

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Entrepreneurial orientation: A multifaceted philosophy upon which an

organization exhibits its corporate culture, its direction, and everything it does (Lechner

& Gudmundsson, 2014).

Environmental scanning: Economic survey of demography to identify competitive

strategies and methods that might have in the past increased stakeholder involvement

approaches (Johnson, 2017).

Intellectual capital: Human resource variables that are related to knowledge rather

than to labor (McDowell, Peake, Coder, & Harris, 2018; Jordão & Novas, 2017).

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Small accounting businesses: Companies engaging in organizing financial records
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belonging to individuals and other companies (Cassar, Ittner, & Cavalluzzo, 2015).

Assumptions, Limitations, and Delimitations

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Assumptions

Marshall and Rossman (2016) defined assumptions as unconfirmed findings that a

researcher considers to be true. The first assumption in this study was that participating
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small business owners would provide honest answers to the interview questions. The

second assumption was that the participants (i.e., interviewees) would provide relevant

and helpful information to answer the central research questions. The final assumption

was that small business owners might use the results of this study to understand various

strategies for sustaining their businesses for longer than 5 years.

Limitations

Limitations exist in a research process and involve circumstances outside the

control of the researcher. According to Esmaeilzadeh, Sambasivan, and Nezakati (2014),

limitations are matters such as circumstances that hamper a researcher’s study. Further,
 8
limitations are potential study weaknesses beyond the control of a researcher (Hyett,

Kenny, & Dickson-Swift, 2014). A limitation of my research was the issue of time

constraints in completing the study. The time in which I needed to complete this study as

an academic work may not have been enough to cover all bases. The second limitation

was bias in the research process, which I recognized and acknowledged. A third

limitation was lack of transferability to a larger population due to the small sample size

(Morse, 2015).

Delimitations

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Delimitations are the bounds or scope of a study within which the researcher
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conducts the investigation (Yin, 2014). A researcher uses this framing format to ensure

focus on the specific length and breadth of the study. I did not go outside the frame of
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reference about exploring the strategies that accounting firm owners use to survive

beyond the first 5 years of business operation. Participants’ responses to interview

questions constituted the mainstay of the research data. Firms or individuals outside the
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Detroit metropolitan area were not of interest to this study, regardless of how near they

were to the Detroit area.

Significance of the Study

The SBA (2015) reported that small businesses account for over 99% of U.S.

employer firms and are the most significant contributor to new job creation. The results

of this study may contribute to economic growth by affording small accounting business

owners access to entrepreneurial management strategies that are useful for achieving

profitability to ensure sustainability of their businesses. This study may contribute to an

 9
understanding of the strategies that are necessary for the sustainability of small

businesses for longer than 5 years.

Contribution to Business Practice

Findings from this study may highlight strategies that small accounting businesses

could use to sustain the growth of their businesses for longer than 5 years. Contributions

from this study may become part of training materials to benefit business leaders and

other stakeholders, including educators. Additionally, the study’s findings could help

small accounting business owners to stimulate growth and learn strategies to sustain their

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businesses for longer than 5 years.
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Appropriate management strategy drives a successful small business enterprise. A

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successful small business sustained for longer than 5 years impacts its local community

by providing employment, increasing the local government tax base, and possibly

lowering unemployment rates. The findings from this research study may contribute to
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positive social change in the community by helping to provide individuals employment,

which in turn would provide financial support for families. The findings may further

allow business owners to enhance support for community empowerment outreach.

Because small businesses play a critical role in the economy, welfare, and culture of local

communities, when they fail, employees lose jobs and incomes, resulting in stressful

circumstances (Miles, 2013).

A Review of the Professional and Academic Literature

Small businesses have a critical role in the economic and social development of

the US. However, more than 50% of small businesses fail to survive beyond the first 5
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years of existence (SBA, 2014). The goal of this qualitative multiple case study was to

explore the strategies that small accounting businesses use to be sustainable beyond 5

years. Provided below is a review of the professional and academic literature with an

overview of the general topic of small business strategies and the specific question of

business strategies that positively impact small accounting business performance.

Researchers’ goal in reviewing existing literature is to contribute to the development of

topics that contain further research directions (Creswell & Clark, 2017). Further, the

primary purpose of a literature review is to inform the audience of developments in the

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field, to establish researcher credibility, and to set the current study within the context of
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past research (O’Leary, 2014; Wakefield, 2015).

The standard rule of standing on the shoulders of other scholars guided the search
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for the postulations of other scholars. Scholarly and academic literature was available in

peer-reviewed journals, through ProQuest, and on other sites such those of university

publishing associations. The various sources were helpful in the search for scholarly
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literature. Sources included Business Source Complete, Google Scholar, Science Direct,

Emerald Management Journals, ABI/Inform Complete, Amazon, and Sage. I used the

following key search words: business sustenance, small business, accounting firms,

sustaining consulting operations, startups, consulting firms, accountants,

entrepreneurship, business success or failure, business strategies, operational longevity,

and surviving first 5 years.

I cite a total of 201 articles in this study. Of the 201 articles cited, 147 peer-

reviewed articles have been included in the literature review. Of these 147 articles, 125

were both peer reviewed and published within the previous 5 years (2015–2019), thereby
 11
meeting the requirement that a minimum of 85% of the references be published within 5

years of my anticipated completion (chief academic officer [CAO] approval) date. The

remaining 54 peer-reviewed articles are cited in other sections of this study. Table 1

shows a summary of the references contained in the literature review. The literature

review section has subsections for topics such as conceptual antecedents in the literature,

environment and marketing strategy, innovation, and operational business planning.

Other sections contain information on potential challenges to small-business owners’

success and failures, personal characteristics and leadership styles, networking and

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appropriate work atmosphere, small business financing and entrepreneurial orientation,
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risk management, proficiency in entrepreneurship, high-performance work ethic, as well

as regulation and business performance.

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Table 1
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Summary of Literature Reviewed by Year of Publication

Years 2014 and

Sources Years 2015–2019 older Total
Peer-reviewed journals 125 22 147

Non-peer-reviewed articles 0 0 0

Book 0 0 0

Dissertations 0 0 0

Other webpages 0 0 0

Total 125 22 147

Percentage of total 85% 15% 100%

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