This study aims to understand the needs of small businesses in rural Tennessee by analyzing data from 3,867 businesses. It seeks to determine if there are differences in business needs between rural and urban areas, and between counties with different economic statuses. Understanding business needs could help leadership at the Tennessee Small Business Development Center provide more targeted support. The study will use statistical tests like chi-square and discriminant analysis to examine relationships between geographic classifications and types of business needs reported. Findings could inform rural development policy and leadership strategies.

1. A Quantitative Study on Small
Business Needs in Rural Tennessee
Michael Aikens

2. Introduction
• Economic shocks, global transitions, and the coronavirus pandemic have caused
distress in rural communities across the United States and Tennessee (Avant et al.,
2013; Belitski et al., 2022).
• The literature review indicated that small business development is crucial in
hedging against these economic forces (Albury-Crandall, 2018).
• In response, agencies within the public sector exist to equip small business owners
with the technical assistance and resources to start, grow, and sustain their
companies.
• One public agency tasked with developing Tennessee’s small businesses is the
Tennessee Small Business Development Center Network (TSBDC) (Dunne et al.,
2021; Geho & McDowell, 2015).
• However, a prevalent gap in the literature neglected to provide TSBDC leaders with
evidence-based leadership approaches that address the specific needs of small
businesses in rural Tennessee.

3. This study seeks to address that problem
• Informed by the Situational Leadership theory (SLT), this research asserts
that understanding rural business needs is critical for leaders to develop
strategies and policies that target rural Tennessee’s small businesses.
• The literature provided evidence linking SLT to small business
development programs and initiatives, indicating that knowledge of small
business needs can help guide public agencies’ leadership styles and
inform rural policy development (Gibson, 2019; Williams, 2020).
• However, a prominent gap in the literature failed to provide quantitative
data regarding small business needs in Tennessee’s rural areas.
• Furthermore, a gap in SLT leadership research exists.
• This study seeks to address that gap.

4. Research Questions
1. What differences in the frequencies of types of small business
needs exist between Tennessee's rural and urban counties?
2. What differences in the frequencies of types of small business
needs exist between Tennessee's rural distressed, at-risk, and
transitional county economic statuses?
3. What is the relationship between a Tennessee county's rural or
urban classification and the frequencies of the types of small
business needs?
4. What is the relationship between a Tennessee rural county's
economic status (distressed, at-risk, and transitional) and the
frequencies of the types of small business needs?

5. Variables
• Independent variables
– Rural-urban county classification
• categorical variable containing two nominal data levels
– Rural county economic status
• categorical variable containing three nominal data levels.
• Dependent variable
– Small business needs
– categorical variable containing 16 nominal data levels.

6. Research Paradigm
• Quantitative research paradigm
• Archival study
• Deductive approach to test for inferential
evidence regarding rural geographies'
relationships to business needs
• Postpositivist worldview

7. Research Designs
1. Descriptive statistics
– Summarize the sample’s variables (small business
demographics and needs)
2. Causal-comparative
– Research questions 1 & 2
– G*Power calculated minimum sample size (n = 159)
3. Predictive correlation
– Research questions 3 & 4
– Minimum sample size n = 105

8. Data Collection Source
• Population
– All small businesses in Tennessee (N = 636,842)
• Collection source
– CenterIC, TSBDC’s client database
• Sampling design
– Single-stage
• Sample size
– n = 3,867
• Collection source permission received June 8, 2022
• IRB approved July 11, 2022

9. Statistical Tests
• Descriptive design
– summarized the study’s demographic variables
• Causal-comparative design
– RQ’s 1 & 2
– Chi-square test for independence
– 95% confidence interval
– Cramer’s V determined the strength of the correlation between the study
groups.
– Bonferonni Adjustment posthoc test reduced Type I errors and determined
where the significant differences existed
– Rejecting null hypothesis infers differences in small business needs exist
between rural and urban areas and rural economic county statuses

10. Statistical Tests
• Predictive correlation
– RQ’s 3 & 4
– Discriminant Function Analysis
– 95% confidence interval
– Medium effect
– Rejecting null hypothesis infers rural and urban areas
and rural economic county statuses can predict small
business needs

11. Summary
• Developing successful small businesses can promote the
revitalization of Tennessee’s rural communities
• Situational leadership undergirds study
• Knowledge of businesses’ needs in Tennessee’s rural areas is
required to inform rural leadership policy and practice
• Quantitative archival study to investigate if significant relationships
exist between rural geographies and small business needs
• Findings implicate small business development leadership and
expand body of work surrounding situational leadership studies