Success Factors of Lebanese Small Businesses in the United States

By Zeinab Fawaz

Small business is the heartbeat of the U.S. economy, the primary source of jobs, and the backbone of the nations well-being. In order to help the American economy recover from the recession, the country urgently needs to dramatically boost its rate of small business creation. This dissertation studied Lebanese small businesses in the United States, focusing on the factors associated with their success, in terms of sustainability and annual after-tax income, and the perception of their contribution to society and the economy. A quantitative analysis of data gathering from 62 survey participants revealed that the success of Lebanese-owned small businesses was attributed to their human resources, operational management, management attributes, economic health and government regulations, and owners personal traits. All these factors interacted to generate higher-dollar orders and helped businesses sustainability. In addition, this study might also help newcomers to the field seeking to develop their own business plans. Other factors pertaining to the success of Lebanese small business owners were also examined and discussed within the framework of minority and enclave theories.

• Language: English
• Publisher: AuthorHouse
• Release date: Aug 10, 2012
• ISBN: 9781477236819

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© 2012 Zeinab Fawaz. All Rights Reserved.

A dissertation submitted to the faculty of the College of Business of Pacific States University in partial fulfillment of the requirements for the degree of Doctor of Business Administration by Zeinab Fawaz

The scroll-paintings printed in this book are from author’s collection

No part of this book may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.

Published by AuthorHouse 07/30/2012

ISBN: 978-1-4772-3681-9 (e)

Because of the dynamic nature of the Internet, any web addresses or links contained in this book may have changed since publication and may no longer be valid. The views expressed in this work are solely those of the author and do not necessarily reflect the views of the publisher, and the publisher hereby disclaims any responsibility for them.

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ABSTRACT

Small business is the heartbeat of the U.S. economy, the primary source of jobs, and the backbone of the nation’s well-being. In order to help the American economy recover from the recession, the country urgently needs to dramatically boost its rate of small business creation. This dissertation studied Lebanese small businesses in the United States, focusing on the factors associated with their success, in terms of sustainability and annual after-tax income, and the perception of their contribution to society and the economy. A quantitative analysis of data gathering from 62 survey participants revealed that the success of Lebanese-owned small businesses was attributed to their human resources, operational management, management attributes, economic health and government regulations, and owners’ personal traits. All these factors interacted to generate higher-dollar orders and helped businesses’ sustainability. In addition, this study might also help newcomers to the field seeking to develop their own business plans. Other factors pertaining to the success of Lebanese small business owners were also examined and discussed within the framework of minority and enclave theories.

Key words: small business, human resources, operational management, management attributes, economic health, government regulations, minority and enclave theories.

DEDICATION

This work is dedicated to my late father and mother, Ali and Amina Fawaz, both of whom brought me up and taught me the virtue of uncompromising honesty. I am also deeply indebted to my husband, Ali Mozannar, who provided me with a perpetual source of inspiration, supporting my potential to successfully complete this study.

ACKNOWLEDGEMENTS

This study has helped me expand my knowledge and deepen my understanding of small businesses generally and Lebanese small businesses, in particular. This research gave me a better grasp of the success factors associated with the Lebanese small business owners in the United States. Through this study, I felt my measure of knowledge reached an even higher level of understanding. This study would not have been possible without the support and help of multiple individuals.

I wish to express my profound gratitude to my husband, Ali Mozannar, step daughter, Janna, my two little sons, Hassan and Hussein, my father-in-law, sister-in-law, and to all my family, for their constant love, support, encouragement, and sacrifices during this study.

I feel genuinely indebted to Dr. Byung Sik Hong, the chair of my dissertation committee. His guidance, extensive knowledge, and wisdom provided me with the encouragement to complete this thesis to strive for a higher caliber of academic quality.

I would like to thank the committee member, Dr. Chase Chonggwang Rhee, for his valuable comments throughout the study.

My sincere recognition goes to Dr. Min Sang Kim, the committee member, for his encouragement and valuable suggestions throughout the entire research process.

I would like to express my appreciation to Mrs. Deborah Hall, the university librarian; my entire work would be jeopardized without her guidance.

My special thanks to Rita Stephan, a Lebanese U.S. census bureau employee, for her assistance and support in collecting data about Lebanese Americans.

I also give my heartfelt gratitude to all my friends, especially to Ghaleb Al-Mallak, who helped me in conducting my survey, to all the Lebanese business owners, who willingly granted me interviews and expressed their candid opinions. Without their help this work would have been nearly impossible.

TABLE OF CONTENTS

Abstract

Dedication

Acknowledgements

Chapter 1: Research Problem

Introduction

Definitions of Key Terminology

Time Line

Historical Background

Research Problem

Research Questions

Scope of the Study

Data Collection

Limitations

Significance of the Study

Outline of the Study

Chapter 2: Literature Review

From Peddlers to Business Owners

Small Business and Entrepreneur Concepts

Small Businesses’ Unique Contributions

Small Businesses’ General Contributions to the U.S. Economy

Educational Achievement

Occupation

Industry

Income

Indicators of Small Business Success

Further Elaboration on Management Skill

Managerial Skills Attributes

Stages of Small Business Growth

Stage 1: Existence

Stage 2: Survival

Stage 3: Success

Stage 4: Takeoff

Stage 5: Maturity

Business Ethics

Small Business Challenges

Economic Uncertainty

Sources of policy uncertainty

Human Resource Differences between Lebanese and American Workers

National Cultures

Cultural Value Dimensions

Immigrant Modes of Structural Incorporation and Social Capital Theory

The U.S. Labor Market and Ethnicity Entrepreneurship

The Disadvantage Theory

The Cultural Theory

The Middleman and Enclave Theories

Literature Review Summary

Chapter 3: Methodology

Overview of Research Methodology

Descriptive Statistics

Research Strategy

Research Design

Assumptions

Data Collection Procedure

Population and Sample Selected

Data Analysis Procedure

Ethical Protection

Hypothesis Testing Methodology

Risks in Using Hypothesis-Testing Methodology and Research Variables

Summary

Chapter 4: Findings And Results

Respondents and Characteristics

Rates and Screening of Respondents

Characteristics

Findings of the Descriptive Statistics and Results of Hypothesis Testing

Summary

Chapter 5: Summary, Conclusions,And Recommendations

Summary

Significant Factors

Less Significant Factors

Conclusions

Small Business Success Model

Recommendations for Further Research

Concluding Reflection

References

Appendix A

Appendix B Survey

Sample Questionnaire

LIST OF TABLES

Table 3.1 Relevant Situations for Different Research Strategies

Table 3.2 Variables and Values

Table 4.1 Tabulated Data Regarding the Respondents’ Rates and the Number of Qualified Respondents

Table 4.2 Business Characteristics

Table 4.3 Findings of the Type of Starting Capital and Businesses’ Sustainability

Table 4.4 Hypothesis Test: Chi-Square Test between Type of Starting Capital and Businesses’ Sustainability

Table 4.5 Findings of Type of Starting Capital and Businesses’ Annual After-Tax income

Table 4.6 Results of Hypothesis Test: Chi-Square Test between Type of Starting Capital and Businesses’ Annual After-Tax Income

Table 4.7 Findings of Number of Full-Time Employees and Businesses’ Sustainability

Table 4.8 Results of Hypothesis Test: Chi-Square Test between FTE and Businesses’ Sustainability

Table 4.9 Findings of Full-Time Employees and Businesses’ Annual After-Tax Income

Table 4.10 Results of Hypothesis Test: Chi-square Test between FTE and Businesses’ Annual After-Tax Income

Table 4.11 Findings of Number of Part-Time Employees and Businesses’ Sustainability

Table 4.12 Results of Hypothesis Test: Chi-square Test Between Part-Time Employees and Businesses’ Sustainability

Table 4.13 Findings of Number of Part-Time Employees and Businesses’ Annual After-Tax Income

Table 4.14 Results of Hypothesis Tests: Chi-square Test Between FTE and Businesses’ Annual After-Tax Income

Table 4.15 Descriptive Analysis of the Impact of Retaining Qualified Employees on Businesses’ Success

Table 4.16 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Retaining Qualified Employees (assume equal population variances)

Table 4.17 Findings of Supply Chain Demography and Businesses’ Sustainability

Table 4.18 Results of Hypothesis Test: Chi-square Test Between Supply Chain Demography and Businesses’ Sustainability

Table 4.19 Findings of Demography Supply Chains and Businesses’ Annual After-Tax Income

Table 4.20 Results of Hypothesis Test: Chi-square Test between Supply Chain Demography and Businesses’ Annual After-Tax Income

Table 4.21 Findings of Clients Ethnicity and Businesses’ Sustainability

Table 4.22 Results of Hypothesis Test: Chi-square Test Between Clients’ Ethnicity and Businesses’ Sustainability

Table 4.23 Clients’ Ethnicity and Businesses’ Annual After-Tax Income

Table 4.24. Results of Hypothesis Test: Chi-square Test Between Clients’ Ethnicity and Businesses’ Annual After-Tax Income

Table 4.25 Findings of Workers’ Ethnicities and Businesses’ Sustainability

Table 4.26 Results of Hypothesis Test: Chi-square Test between Workers’ Nationalities and Businesses’ Sustainability

Table 4.27 Findings of Workers’ Nationalities and Businesses’ Annual After-Tax Income

Table 4.28 Results of Hypothesis Test: Chi-square Test between Workers’ Nationalities and Businesses’ Annual After-Tax Income

Table 4.29 Findings of Weekly Business Hours and Businesses’ Sustainability

Table 4.30 Results of Hypothesis Test: Chi-square Test between Weekly Business Hours and Businesses’ Sustainability

Table 4.31 Findings of Weekly Business Hours and Businesses’ Annual After-Tax Income

Table 4.32 Results of Hypothesis Test: Chi-square Test between Weekly Business Hours and Businesses’ Annual After-Tax Income

Table 4.33 Descriptive Analysis of Promotion and Advertisement Impact on Businesses’ Success

Table 4.34 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Promotion and Advertisement (assume equal population variances)

Table 4.35 Descriptive Analysis of Technology Impact on Businesses’ Success

Table 4.36 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Technology (assume equal population variances)

Table 4.37 Descriptive Analysis of Innovation Impact on Businesses’ Success

Table 4.38 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Retaining Qualified Employees (assume equal population variances)

Table 4.39 Findings of Families’ Involvement and Businesses’ Sustainability

Table 4.40 Results of Hypothesis Test: Chi-square Test between Families’ Involvement and Businesses’ Sustainability

Table 4.41 Findings of Families’ Involvement and Businesses’ Annual After-Tax Income

Table 4.42 Results of Hypothesis Test: Chi-square Test between Family Involvement and Businesses’ Annual After-Tax Income

Table 4.43 Descriptive Analysis of Managerial Capabilities’ Impact of the Managerial Capabilities on Business Success

Table 4.44 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Managerial Capabilities (assume equal population variances)

Table 4.45 Findings of Defined Business Objectives and Goals and Businesses’ Sustainability

Table 4.46 Results of Hypothesis Test: Chi-square Test between Defined Business Objectives and Goals and Businesses’ Sustainability

Table 4.47 Findings of Defined Business Objectives and Goals and Businesses’ Annual After-Tax Income

Table 4.48 Results of Hypothesis Test: Chi-square Test between Defined Business Objectives and Goals and Businesses’ Annual After-Tax Income

Table. 4.49 Descriptive Analysis of Environmental Friendliness Impacts on Businesses Success

Table 4.50 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Environmental Friendliness (assume equal population variances)

Table 4.51 Descriptive Analysis of Business Ethics Impact on Businesses Success

Table 4.52 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Retaining Qualified Employees (assume equal population variances)

Table 4.53 Descriptive Analysis of Accuracy/Transparency Impact on Businesses Success

Table 4.54 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Accuracy/ Transparency (assume equal population variances)

Table 4.55 Descriptive Analysis of Legal Impacts on Businesses Successes

Table 4.56 Results of Hypothesis Test: Independent Samples (Successful and Unsuccessful) of Two-Tails t-Test for Differences in Means of Legality (assume equal population variances)

Table 4.57 Findings of Verifiable Business Plans and Businesses’ Sustainability

Table 4.58 Results of Hypothesis Test: Chi-square Test between Verifiable Business Plans and Businesses’ Sustainability

Table 4.59 Findings of Verifiable Business Plans and Businesses’ Annual After-Tax Income

Table 4.60 Results of Hypothesis-Test: Chi-square Test between Verifiable Business Plans and Businesses’ Annual After-Tax Income

Table 4.61 Findings of Focused and Clear Business Plans and Businesses’