The effect of decision-making on the growth of small businesses in an uncertain environment

This study investigates the effect of the decision-making process, in terms of the effectuation and causation orientation of small business owners, on the growth of their small businesses in an uncertain environment. Based on primary data from a pre-study of expert interviews and a main study of surveys from 154 owners of small businesses in Burundi, the results show that effectuation-oriented small business owners perceive more uncertainty, and effectuation and causation processes at the start of the business have a marginal effect on the growth of the small business. The findings borne out by this study suggest that, although effectuation and causation processes can be present at the start of the business of an entrepreneur, these processes do not influence later small business growth. Therefore, other determinants for small business growth in an uncertain environment should be further explored by scholars.