The Causal Relationship of Management Functions and Business Functions of Small Business Entrepreneurial Success
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Abstract
Management functions and business function are skills that are critical to the success of business. The review of literature, however, shows that there is still a lack of empirical research that clearly confirms the influence of management functions and business function on the success of the business. Therefore, the objective of this research is to examine the consistency between the conceptual framework of the research and the empirical data of causal influences, including both direct and indirect influence of management functions and business functions and the success of small business entrepreneurs. The questionnaire was used to collect data from 242 small business leaders. The statistics used were frequency, percentage, mean, standard deviation, and testing for causal relationship. The results showed that the conceptual framework and empirical data were conditionally harmonious (p-value = .29, Chi-square/df = 1.12, GFI = .97, AGFI = .95, RMSEA = .02, NFI = .98, IFI = 1.00, CFI = 1.00). The findings show that management functions have a direct influence on business functions, and the business functions have a direct influence on the success of the business. Management functions have no direct influence on business success. However, it was found that management functions indirectly influence the success of entrepreneurs through business functions. This research provides suggestions and future research for those interested.
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