Role of Strategic Marketing in Survival of Small Business and Creating Job Opportunities in the U.S. Economy
Abstract
Small businesses are essential drivers of US economic growth and employment, however many struggle to remain viable because of inadequate strategic marketing capabilities. This study filled the existing gap on a measurable effect of strategic marketing practices on small business survival and job creation, which has not received much attention in empirical studies. The purpose of the research was to analyze the effect of marketing orientations such as market research, branding, pricing and digital marketing on business performance and employment creation. After quantitatively surveying 410 small business owners and managers in the context of different U.S. regions, analyses were conducted through Descriptive statistics and Structural Equation Modelling. Findings indicated that strategic marketing practices were associated with 62.4% of the variation in survival of firms and 54.7% in firm job creation. In terms of marketing dimensions, digital marketing performance (β = 0.41, p < 0.01) and customer relationship action plans (β = 0.36, p < 0.01) had the greatest effect on firm survival and workforce growth. The results indicated that businesses with a regular marketing planning and customer‐centric approach were 1.8 times more likely to achieve sales growth, job creation. Original evidence on marketing strategy and socioeconomic outcomes was provided, with policy implications for the support of small firms’ marketing capacity to increase employment and develop regions.
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