Factors Influencing Early Stage Performance of Small Firms Case Study: (Science and Technology Parks Incubators Small Firms)

This paper explores the relationship between the selected facets of small business managerial capabilities and their early stage performance. Every new venture has a certain potential to contribute to economic output, employment and renewal of the industrial structure. Research about the factors that influence the performance of emerging small businesses can play a key role in the development of public policy in this area. This study examines the impact of managerial capability on small business performance. Using a sample of small enterprises in Science and TechnologyParks, it was found that managerial capability had three dimensions: marketing management, financial/operations management, and technological capability. The positive relationship between the first two constructs and the performance variables help to identify the key management activities during start-up stage. The dominant catalyst appears to be marketing capability. Furthermore, the level of marketing capability was found to be associated with the proportion of financing secured from outside sources.