-Impact of Age of the Firm on Business Performance
Study findings support consideration of age of an organization as a factor that may affect firm survival and growth and/or organizational decline and death the liability of newness that makes new enterprise face a greater risk of survival than older firms is that new firms do not have the experience, access, links, reputation or the legitimacy of the older firms, leading to limited access to external resources.
-Impact of Location of the Business on its Performance
Geographic location has its implications for access to markets and other resources like: finance, skilled labor, subcontractors, infrastructure, distribution and transport logistics and other facilities. Enterprise success also depends on neighborhood appearance and continued or maintained future business operations in that location. Cortes (1987) suggests that enterprises located in urban areas might face different closure possibilities than their rural neighbors . Strassmann (1987) suggests that home-based enterprises in commercial areas generate more income than similar enterprises in more isolated areas. North and Smallbone (2000) found that firms in distanced rural areas were less active on various dimensions of innovation. This may be influenced by the fact that most rural areas have less well developed financial and business service sectors than urban areas.
-Impact of Education on Performance of Enterprise
Education and skills are needed to run micro and small enterprise those with more education and training are more likely to be successful in the business sector. Studies show that most of the running enterprises in this sector have at least attained college level education. Thus education system is assisted to support and encourage those interested in knowing what it is like to run a business. After entering the entrepreneurial world, those with higher levels of education are more successful because university education provides them with knowledge and modern managerial skills, making them more conscious of the reality of the business world and thus in a position to use their learning capability to manage business.
-Relationship of Experience and Business Performance
Ninety percent (90%) of business failures are associated with management inadequacy, which consist of either management inexperience or incompetence (Perry and Pendleton). Chiinu 2015
Many enterprise owners managers have lack managerial training and
experience. Experience is the best predictor of business success, especially when the new business is related to earlier business experiences. Entrepreneurs with vast experiences in managing business are more capable of finding ways to open new business Student: Gudima Daniel Group: T-141