| This investigation of effective small business owner learning and critical decision making used a qualitative, modified, inductive analytic methodology. Nominations from government agencies, foundations, educational institutions, and business associations resulted in a study group of 32 small business owners who owned 24 businesses in western Pennsylvania, northern West Virginia, and western Ohio. Criteria for nomination included a record of effective business decisions, five years or more of ownership, and active management of the business.; The study revealed that these owners have much more human and social capital and their businesses much more strategic capital than is common among owners nationally. They are also older. They have more education, more work and management experience, and supportive learning communities of business advisors. The owners create strategic capital within their businesses by securing customer contracts before launching the business; entering niche markets in protected, high-end, expanding or rebounding industries; having special marketing expertise; using computer technology; and committing to high levels of customer service and quality.; These owners go through five experiential learning periods. The Genesis Years, prior to ownership, provide positive early selling or mini-business experiences, business mentors, family and business role models, successful work and management experiences in and out of the field, and formal education usually at the college level and in non-business fields. The Launching Phase, Building Years, Plateau Years, and Ending Years focus on starting, increasing, dealing with frustration or "burn-out," and passing on the business.; The owners' effective critical decision process is a multi-step Innovation Learning Loop. The learning community participates in each step. The steps are idea formulation, enhancement, multiple alternatives, a pause to gain perspective, a selection from alternatives, planning the implementation, implementation, adjustments or fine tuning, and learning from the experience so that new ideas are generated. It was the involvement of and attention to input from the learning communities which separated effective and ineffective critical decisions. |
