Apostolos D. Zaridis, Kostas Karamanis
The purpose of this study is to analyze and highlight specific characteristics of entrepreneurs and small and medium-sized enterprises (SMEs) that contribute to competitive advantage. The study explores how these traits, when effectively leveraged, can lead to sustained competitive advantage, which is crucial for achieving a firm's primary objectives, such as wealth maximization and profitability. The research draws upon the resource-based view to propose a hierarchy of resources and competencies essential for long-term sustainability. It emphasizes the importance of factors such as business size, management, ownership, market information, innovation, organizational structure, and networking in determining the success or failure of SMEs. Additionally, the paper categorizes potential failures into functional knowledge, managerial skills, and behaviors pertinent to entrepreneurs and SMEs. The findings underscore the minimal differences between success and failure, suggesting that strategic management and adaptation to environmental factors are critical for SME success.