Resources in Small Firms: An Exploratory Study

The importance of resources to firms is well documented in theory, texts and empirical studies. Yet, research focuses on acquisition of financial resources, with less attention given to other types. Prescriptions emphasize resource a/location or fit to opportunities, often treating resources in the aggregate without considering unique distinctions in resource types or usage. This paper argues that there are five distinct types of resources applicable to small firms- human, social, organizational, physical and financial. An exploratory study of 76 firms examines the relative importance of these resource types and analyzes relationships between resources and characteristics of the owner/founder and organization. Findings show overall higher ratings for physical and organizational resources than for financial resources. Results indicate few differences in resources depending on owner/founder characteristics or industrial sector.