Factors influencing the revival of declining small businesses in Australia

This paper examines the factors influencing the key managers’ decision to revive the declining small businesses using evidence from 25 troubled small businesses in Australia. Findings reveal that, managerial factors, i.e., cognition of decline, extent of personal and professional network, capabilities, motivation and leadership of the key managers and their access to critical resources considerably influence the successful revival of a declining small business. Organisational factors, i.e., composition of the top management team, stakeholder management and firm’s breadth, depth, and lifecycle influence the key manager’s turnaround responses. External factors, e.g., availability of quality support services and government policy may also influence the turnaround responses and revival success. Implications are drawn for the entrepreneurs and managers of small businesses in Australia.