Bill Right by Considering Sample Constitution

In deriving from survey findings and study results the recommendations I make to you, I attend to characteristics of the people constituting the sample used in the survey or study. For instance, a great deal of consumer behavior research is conducted on college students because of the easy availability of the students to the researchers. Therefore, I assess how generalizable those findings are to consumers you aim to serve in operating a small to midsize retail operation.
     The matter of sample constitution arises with a report this month by Thumbtack.com, which rates locally-owned businesses, of a survey conducted in partnership with the Ewing Marion Kauffman Foundation, a booster of entrepreneurship. The objective of the survey was to identify areas of America which are most and least friendly to small businesses.
     Here are a few of the findings:

• Of the business friendliness factors surveyed, the one most important to the respondents was the ease of continuing to satisfy regulations, especially licensing regulations. 
• Among states, those seen as most friendly to small businesses included Alabama, Idaho, New Hampshire, and Utah, all at A+. Ratings of least friendly, with a grade of F, were given to Hawaii, Maine, and Rhode Island. 
• Among the 57 U.S. metropolitan areas assessed, an A+ went to Austin, Colorado Springs, Houston, San Antonio, and Virginia Beach. Notice that three of these cities are in Texas, which received a grade of A overall. Ratings of F went to Cincinnati, Newark, Sacramento, and San Diego. California received a grade of D overall. 
• Most improved state from last year’s survey was North Carolina, although its grade was still only a B+. 

     But how representative was the composition of the survey sample?

• On the positive side, the 7,766 survey respondents were truly from small businesses. About 96% had fewer than ten employees. 
• Also good is that the self-reported race, ethnicity, and gender distribution of the sample closely matched that reported for American small business ownership. So did the statistics for the small business longevity. 
• However, because the sample was composed completely of Thumbtack.com clients, there was a substantial overrepresentation of retailers who primarily sell services and underrepresentation of retailers who primarily sell products. This skew might explain why more than half of the respondent sample said they believe the level of taxes they pay is about right. 

     The constitution of the survey sample influences the value to you of the results.

Click below for more: 
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