GLOBAL PERSPECTIVES Factors Contributing to the Growth of Small Manufacturing Firms: Data from, Australia

The small business sector i.s a vital contributor to the overall performance of the Australian economy. Small businesses account for approximately 97 percent of all private sector businesses, and 51 percent of private sector employment (Australian Bureau of Statistics 1996). Neveiiheiess, the folklore is that most small businesses discontinue within a few years of their start up. Of those businesses that continue, there is considerable variability in the rate of growth. Therefore, it is Important to identify the causes of failures and discontinuations as well as the factors contributing to the success or growth of small enterprises. Moreover, these causes of failure and factors of success may vary from country to country, depending on economic, geographical, and cultural differences. As such, empirical investigation into these aspects of small business in different countries is needed because the findings of such research are useful to economic development planners as well as to individual entrepreneurs in the countries concerned.