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Why do some businesses succeed and others end up bankrupt? There is great discrepancy in the literature as to which variables do in fact lead to success, thus, there currently is no theory. To move the field in that direction, this study tests the Lussier 15-variable business success versus failure prediction model in Chile with a sample of 234 small businesses—131 failed and 103 successful. Results support the model's validity in Chile. Thus, the model has been tested with significant results in three very different parts of the world; first in United States (North America), then in Croatia (Central Eastern Europe), and now in Chile (South America). The model will reliably predict a group of businesses as failed or successful more accurately than random guessing in all three countries over 96 percent of the time.
Lussier et al. (Tue,) studied this question.