The purpose of this paper is to determine the effects of initially controllable market factors on franchise success within NBA's Development League (D-League).
The open systems theory provided the foundation for analyzing characteristics contributing to small business success, as measured by attendance capacity for NBA D-League teams. Multiple regression analysis was utilized.
The results of this study indicate specific market characteristics increase franchise success in NBA's D-League. Population, income, facility size and ownership model all influenced attendance capacity.
This study is limited to the teams that have operated in NBA's D-League. Contextual factors related to new business survival are not unique to minor league basketball and can be applied by scholars or professionals to any new business to help understand new business survival.
This research is also useful to cities looking to invest in a professional sports franchise and for all small business owners to understand market characteristics that can contribute to success.
The results from this study significantly contribute to small business literature by being the first empirical study on NBA's D-League.
