An insight into small business success: the UK chemical distribution industry

Even though there has been significant empirical research on the determinants of small business success, there is still no agreed-upon definition of SMEs and business success, no unifying theory and with success factors varying with the business environment. Developing a better understanding of the factors that contribute to small business success becomes crucial. SMEs have a strong presence in the UK chemical distribution industry and play an important role in its overall growth and performance. However, there is limited literature and research on this industry. This study identifies the factors critical to the success (CSFs) and sustainable growth of SMEs in the UK chemical distribution industry. Based on a survey of owners and senior managers, Regulatory Compliance, Entrepreneurial Orientation, Customer Relations Management, Market and Product development, Prior Work Experience and Management Skills, Human Capital, Economic Environment and Strategic Planning are identified as the critical success factors for this industry. Findings suggest that success is a multidimensional phenomenon, where both firminternal and firm-external factors need to be optimal simultaneously. Variations between SMEs are also found, suggesting that different strategies are needed for different sized businesses. Specific attention is given to supplier management, as this relates to a number of CSFs.