An estimated 28,443,856 small businesses in the United States employ about 56.1 million of the nation's private workforce (Office of Advocacy, 2015). The combined total revenue of small businesses accounts for more than 50 percent of the gross domestic product (GDP) of the United States (Nickels, McHugh, & McHugh, 2015). The three industries with the highest small business employment include health care and social assistance, accommodation and food services, and retail trade. The three most common industries for small employer firms across the United States include professional, scientific and technical services; other services (except public administration); and retail trade (Office of Advocacy, 2015).

While small businesses are responsible for producing the majority of the GDP, many small businesses do not survive past the first years of operation. For example, 40 percent of new business ventures fail in their first year, 60 percent in their second year and 90 percent in their first 10 years of existence (Radipere & Van Scheers, 2014). In the retail trade industry, approximately 17 percent of new business ventures fail within their first year, 34 percent in their first three years and 43 percent in their first five years of existence (U.S. Bureau of Labor Statistics, 2015).

The results of this study could help identify management and leadership skills that contribute to the success and failure of small businesses. This information could help small business owners develop a winning strategy that combines the roles of management and leadership. The researcher explored the perspectives and experiences of current and former small business owners regarding the leadership and management skills that affect the survival of small business ventures. Participants in this study included individuals whose small businesses have failed, as well as individuals whose companies have remained in business for at least 10 years. Perspectives of individuals whose businesses span a wide timeline allowed for better insight and comparison of company elements.

The researcher discusses the following details to illuminate the research topic further: (a) background of the study, (b) problem statement, (c) purpose of the study, (d) research questions, (e) advancement of scientific knowledge, (f) significance of the study, (g) rationale for methodology, (h) nature of the research design for the study, (i) definition of terms and (j) assumptions, limitations and delimitations. The chapter ends with a summary and an overview of the remainder of the proposal.