In February 2003 there were 294,954 businesses in New Zealand, with 97% employing less than 20 full time employees. These businesses come under the demographic heading of SME's (Small and medium-sized enterprises). SME's continue to increase with New Zealand fast becoming a country of small businesses (Cameron & Massey, 1999). One in four of these SME's are run by a single proprietor (Statistics).
A question that is asked many times is "why do some small businesses succeed and others fail"? From the wealth of academic literature available (magazines, newspapers, books, journals and the internet) it has been found that there are many factors that contribute to a small businesses success or failure. This essay will focus on three
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