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SMALL- TO MEDIUM-SIZED ENTERPRISE CHARACTERISTICS AND PERFORMANCE: AN EXPLORATORY EXAMINATION OF THE CENSUS BUREAU’S SURVEY OF BUSINESS OWNERS

Abstract

The purpose of this paper is to explore the relationship of small- to medium-sized enterprise (SME) characteristics and performance. The study draws on the Census Bureau’s Survey of Business Owners (SBO) Public Use Microdata Sample (PUMS). SBO response variables regarding owner demographics, business acquisition, and business performance are the outcome variables of interest in this study. A one-way analysis of variance (ANOVA) is applied to test whether or not there are differences across SMEs based on firm size. The results provide some interesting differences across the SME firm size groups. In particular, smaller SMEs have different characteristics regarding owner demographics, business acquisition methods, and business performance metrics compared to larger SMEs. The study concludes with some future research directions.

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