Title: In their own words, the perceived constraints to declared goal attainment by SME owners: a view from New Zealand

Authors: Zakaria Boulanouar; Tahar Lazhar Ayed; Lobna Essid; Stuart M. Locke

Addresses: Department of Accounting and Finance, College of Business and Economics, The United Arab Emirates University, UAE ' Department of Management and Marketing, School of Business and LawDar Al-Hekma University, Saudi Arabia; Département de Management, École Supérieure de Commerce de Sfax, Université de Sfax, Sfax, Tunisia ' Laboratory of Research in Applied Microeconomics, Faculty of Economic Sciences and Management of Tunis, University El Manar, Tunis, Tunisia; Higher Institute of Biotechnology Beja, University of Jendouba, Jendouba, Tunisia ' School of Accounting, Economics and Finance, University of Waikato, Hamilton, 3216, New Zealand

Abstract: In SME governance, previous studies examined either motives for starting a business (financials, lifestyle, independence) or obstacles faced by SME owners. This study integrates these aspects, exploring self-set goals for starting businesses and perceived constraints hindering attainment of these goals. Internal and external constraints are distinguished, representing owners/managers' limitations versus external impositions. Utilising partial least squares structural equation modelling (PLS-SEM), a contemporary analytical approach, we employ the PLS algorithm and bootstrapping analysis on surveyed New Zealand SMEs to investigate the link between SME goals and constraints. Our findings reveal two external constraints (government, compliance costs) and two internal constraints (business capability, partnership) impacting owners/managers' achievement of independence and financial goals. Notably, external and internal constraints demonstrate comparable influence on business objectives. Moreover, independence emerges as a more significant and affected goal compared to financials, aligning with prior research emphasising owners' pursuit of independence rather than growth.

Keywords: small and medium enterprises; SMEs; goals; objectives; constraints; PLS-SEM; New Zealand.

DOI: 10.1504/IJBPM.2024.140745

International Journal of Business Performance Management, 2024 Vol.25 No.5, pp.605 - 629

Received: 26 Dec 2021
Accepted: 31 Oct 2022
Published online: 02 Sep 2024 *

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