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2020 | OriginalPaper | Chapter

6. The Process of Growth in the Small Firm

Authors : Tim Mazzarol, Sophie Reboud

Published in: Small Business Management

Publisher: Springer Nature Singapore

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Abstract

Small business growth is a goal that would seem desirable for all owner-managers. However, relatively few small business start-ups develop into large firms (e.g. with over 250 employees) (OECD, 2002, 2010). Many disappear along the way, either due to external factors beyond the control of the owner-manager, or more commonly due to internal factors over which they do have control. Perhaps it may come as a surprise to know that the majority of small business owner-managers choose not to grow their businesses (McMahon, 1998). This appears to be as a result of their lack of understanding or skills in how to achieve growth, as well as a conscious decision to restrict expansion and thereby maintain a business of a size that they can easily control (Nightingale & Coad, 2014). In Chap. 4, the three generic strategic options facing the small firm were outlined. These comprise stasis, exit and growth. As was noted, all three strategies are viable and demanding ones for a small business to follow. However, the growth strategy is probably the riskiest and most demanding. This chapter looks at the nature of small business growth and the challenges facing growing small firms.

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Title: The Process of Growth in the Small Firm
Authors: Tim Mazzarol
Sophie Reboud
Publisher: Springer Nature Singapore
Book: Small Business Management
Print ISBN: 978-981-13-9508-6

Electronic ISBN: 978-981-13-9509-3

Copyright Year: 2020
DOI: https://doi.org/10.1007/978-981-13-9509-3_6