Generalising Theories Explaining the Different Modes of SME Development and the Associated Growth Trajectories

Previous research has identified two forms of “abnormal” growth – styled as business dwarfism and gigantism - which can both lead to missed opportunities for owners/entrepreneurs and local economies, and even to business crisis and collapse. It has also shown that stunted and inflated growth phenomena, rather than being characterised by completely different rules and rationales, are closely related and that certain fundamental structures and processes underpin both those forms of ab-normal company growth behaviour. This paper reports an examination of a further SME phenomenon – what we have chosen to call "micro-giants". These are companies that would be categorised as rela-tively small fir…

A Physiological Approach to Analysing SME Growth Patterns and to Understanding the Distinctions and Similarities between Normal and Abnormal Growth

Building on earlier work on abnormal SME growth trajectories, this paper investigates to what extent the analysis can be extended to the study of an unusual but “normal” growth pattern. The detailed case histories of two firms which might be called micro-giants are presented. These are companies that would be categorised as small firms but are actually competing, and competing successfully, in non-niche markets with much larger firms, or even multinational giants. The resource based view and modelling approaches developed in the earlier non-normal growth situations is then applied to these cases. It is argued that by viewing the management of strategic assets as part of the normal business …

Building on Entrepreneurs’ Leadership through ‘Lean’ and Dynamic Performance Management Systems in Small and Micro Firms. Challenges and Missed Opportunities

This paper frames the potential benefits of ‘lean’ and dynamic performance management (PM) systems for small and micro enterprises. In this context, the ‘lean’ attribute is used to characterize a different approach in applying PM to small firms, in respect to larger organizations. In fact, such systems may exploit the entrepreneur’s tacit knowledge and build on leadership, by incorporating individual attributes into organizational routines. Related to small and micro firms, direct experience and case-studies suggest that their sudden crises and demises are often a product of gradual – internal and external – phenomena that entrepreneurs are not enabled to selectively and promptly detect and…

Management Simulator as an Instrument to Aid Turning “Stunted Growth” Round in Family Businesses

This paper is the fourth in a series which has described the role and construction of simulation models and a ‘Management Flight Simulator’ that could aid the entrepreneur-owners of so-called ‘dwarf’ or ‘stunted growth’ small firms to break out from the constraints holding them back. While the research presented to date has highlighted the issues in such companies, and has suggested that in many situations relatively simple changes only might be needed to unleash the growth potential of such firms, effecting such changes is not likely to be that “simple” in real life. It has to be possible for affected owner-entrepreneurs to understand a number of factors: that there is a problem (or opport…

Sustainable strategies for small companies competing 
against multinational giants