Examining the Relationship Between The Quantities of Active Small Business Lending Institutions and The Quantities of Active Small Businesses per City in the State of New York

Inadequate small business lending services within a city similarly produces low quantities of active small business owners (SBOs) within the city. Research pertaining to the relationship between quantities of active small business lenders per city within the State of New York and quantities of active SBOs per city within the State of New York is scarce and must be further examined. The purpose of the quantitative study is to examine the relationship between small business lenders per city and SBOs per city throughout the State of New York. In accordance with House’s (1971) path-goal theory, the performances of active small business lending institutions per city sets an incentivized path to lead the performances of active small businesses per city towards the ultimate goal of business longevity and success. The dyadic relationship becomes interdependent. Data for the quantities of SBOs per city in the State of New York positively correlates with data for the quantities of small business lending institutions per city within the State of New York. While the top half of New York State cities (based on quantities of small business lenders per city) produces an insignificant correlational outcome, the bottom half of cities indicates that no relationship exists. Results from the study provide important information for economic development and improvement for the City of the New Rochelle, New York and other cities in the United States facing similar economic crisis from small business failure