A Business Success Versus Failure Prediction Model for Small Businesses in Israel

Abstract

With the great discrepancy in the literature as to which variables do in fact lead to success or failure of small businesses there is no theory; the Lussier 15 variable business success versus failure prediction model stands out in its accuracy that has been tested and validated already in three very different parts of the world. This study further contributes by testing the model in Israel with a sample of 205 small businesses - 101 failed and 104 successful. Results support the model’s validity in Israel, reinforcing its global validity and moving toward a theory; while demonstrating similarity of SMEs in Israel to those in other economies.

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