Narrow Results

The goal of this paper is to identify the factors that precede and may cause sudden changes in the pace of growth of high-growth SMEs or gazelles. A retrospective longitudinal case study of seven high growth SMEs that had undergone a total of 14 sudden shifts in growth reveals that a number of events caused the changes of pace. Some were triggered by the entrepreneur's decisions while others resulted from events beyond his/her control. Management's motivation for growth was an important element and this motivation changed over time, being influenced by both success and problems associated with actual growth. The success of growth strategies also appears to depend on the firm's proximity to its client base and its ability to obtain the information required for sound decision-making. Lastly, the availability of tangible and intangible resources was found essential in allowing the company to seize growth opportunities and proximity to the business milieu may help accessing these resources.

This paper provides a critical overview of a recent attempt to create an independent statutory "voice" for small enterprises within the formal government bureaucracy in one Australian jurisdiction. It discusses the creation and eighteen months of activity of the Small Business Commissioner of the Australian Capital Territory.

In 2003 the ACT government foreshadowed that, as part of its strategy to create the most small-business-friendly location in Australia, it would establish a Small Business Commissioner as a statutory appointment. The Legislative Assembly passed the Small Business Commissioner Act in 2004 and activity began in March 2005.

The key activities of the Commissioner have been to examine small business complaints about ACT government agencies; to promote the use of mediation and/or other alternative dispute resolution tools for the settlement of disputes between small enterprises and other businesses; to provide independent advice to the Territory government about laws, regulations and policies that may affect small firms; to oversee the introduction of small business service charters within government agencies; and to establish a more "business friendly" service culture within ACT government agencies.

On one hand, it is clear that a Commissioner role has a potentially significant strategic importance for small and medium-sized enterprises, principally through the provision of independent commentary, pushing for red tape and regulatory reduction, and by providing mediation services and investigative functions. However, there are also some current problems with the role. These include potential overlap with other regulatory and investigative bodies; lack of formal compulsive powers; its dependence on political support for its effectiveness; insufficient resources; and the nature of the relationship it has with other government entities.

The concept of competence, as it is brought into play in current research, is a potentially powerful construct for entrepreneurship education and training research and practice. Although the concept has been the subject of strong debate in educational research in general, critical analysis of how it has been used, applied and experienced in entrepreneurship education practice is scarce. This article contributes specifically to the discussion of entrepreneurial competence by theoretically unfolding and discussing the concept. Subsequently, the implications of applying a competence-based approach in entrepreneurship education are illustrated and discussed based on analysis of two cases that were aimed at identifying, diagnosing and eventually developing entrepreneurial competence in small businesses in the Netherlands and Flanders (Belgium). The cases show that the added value of focussing on competence in entrepreneurship education and training lies in making the (potential) small business owner aware of the importance of certain entrepreneurial competencies and in providing direction for competence development. In this process it is fundamental that competence is treated as an item for discussion and interpretation, rather than as a fixed template of boxes to be ticked. Furthermore the cases highlight that a competence-based approach does not completely determine the type of educational and instructional strategies to be used. Its consequential power in that respect is limited.

It is widely reported that entrepreneurial activity has a significant role to play in transition economies such as Central and Eastern Europe but little is known about the role that the family unit plays in facilitating small business emergence in the former command economies. This is surprising given that the link between family and small business development has been widely researched in market economies. In this study, attention is drawn to the role that family relations and resources play in small business emergence. The study focuses on Bulgaria, a country in the Balkans with much cultural diversity and which became a European Union member in 2007–8. Analysis is undertaken of research material drawn from a survey of 69 small firms. 42% of the surveyed firms are two generation businesses involving the entrepreneur and children or parents. 35% of the businesses are three generation businesses involving the lead entrepreneur, parents, children and siblings. The remaining 33% are firms that are run by couples and/or siblings. This suggests that the family household is the key channel for (and of) small business formation. In neglecting the role of family start-ups, this gives a false understanding to the role that households and families sometimes contribute to the economy. At the same time, it is also partly because of this dependency on family relations and resources that small businesses become rooted in the 'informal economy' — an economy that is based on family favours and which it is difficult to break out of.

Apart from starting, growing and/or sustaining a business, owner-managers in small firms have the responsibility to balance business goals and managerial priorities, with ownership control tendencies and family values (as in the case of the prolific family enterprise) in a fashion that can comfort all business stakeholders. Understanding the inter-relationship among owner-manager's leadership style, intra-organisational management systems, and business growth can enable us to develop insights into how small business leaders masterfully construct a management approach that is conducive to sustainable performance. This empirical paper draws evidence from a large-scale postal survey (5710 respondents) of small and medium sized enterprises (SMEs) in the UK and explores the association of small business managerial style and performance. Logistic regression analysis reveals that the managerial style of entrepreneurs is influenced by a series of demographic and situational factors. Moreover, owner-managed businesses characterised by delegation of authority appear to achieve higher growth in sales and operationalise in a more professional way. The paper concludes with a discussion of the implications. The role of managerial style in interpreting business's growth performance will complement the leadership literature.

The goal of this research is to contribute to a pragmatic knowledge of building a Canadian small business for an independent music artist who does not know where to start in creating a business. It is meant to be an initial guide for musicians planning to consider this form of business development, as opposed to signing with a label, or as a way to increase the likelihood of becoming noticed by a label. This research paper is initial and exploratory in nature.

Until recently, human resource management has been considered inappropriate and too costly for small businesses and consequently research in this direction has been at a relatively minimum level. It is also evident that the effectiveness and competitiveness of SMEs can be increased through the application of sound HRM practices. In order to establish how SMEs can successfully apply HRM, the objective of this study is to establish, in an exploratory manner, the applicability of HRM in a small business in order to ensure its effective operation and consequent competitiveness. The research method applied is an interpretive and qualitative approach by means of a single case study of a photographic equipment store. The owner-manager perceives that personnel problems pose a major barrier to the success of the business; however, he also believes that outside aid in HRM would not resolve the problems. The HRM process of the SME growth model adds value in the sense that it also illustrates the relationship between the owner-manager's personal characteristics, external market conditions, nature of the work environment, and the business structure. Given the small business-specific problems that were identified, the information obtained in this study paves the way for a quantitative study of a number of SMEs and comparative research.

The objective of this study is to explore entrepreneurial motivation in a least developed country (LDC), which can be divided into push factors and pull factors, without a priori separation between those which are necessity-driven and those which are opportunity-driven. This study shows that the premise "For people who start their own business in an LDC, push factors are more important than pull factors" can be rejected. In contrast to the findings from prior studies on entrepreneurship in LDCs, this study shows that push factors and pull factors are not mutually exclusive. In addition, this study shows that pull factors are even more important than push factors, and that therefore push factors only play a minor role for entrepreneurs. The overall implications are that motivation is a more combined, and nuanced construct, and that the Western concept of entrepreneurial motivation and method of measuring entrepreneurial motivation, are globally applicable.

In many rural and remote communities, residents have traditionally relied on jobs in natural resource-based industries. Over the years, employment has been steadily reduced due to changes in these industries. Both the communities, faced with declining populations as a result, and the residents are examining the potential of small business to create economic development. However, these locations create challenges for small business operators. Some communities experience accessibility and transportation issues and often lack standard business infrastructure. At the same time, the very nature of these rural areas can become components of a marketing strategy. This paper will examine three conceptualizations of rural and the commodification process and propose a framework for positioning the concept of rural as part of a marketing strategy. Three case studies from a rural region in Canada will be presented and analyzed within this framework. The paper concludes with recommendations for rural businesses, communities and governments and other interested parties within the context of rural economic development.

In a small business context, the importance of relationship marketing has not attracted much academic attention. This study explores the discursive resources on which small business owner-managers draw, when making sense of business to business (B2B) relationships and networks and constructing identities in various socio-cultural contexts. Through unstructured interviews with 21 British and 22 Chinese owner-managers, we find that both British and Chinese respondents show a noticeable preference for long-term interactive relationships and portray themselves as being interpersonal skillful. Yet British owner-managers describe themselves as being relational, trustworthy, and committed mostly at interorganizational level. According to them, interpersonal relationships are merely employed as a marketing technique supporting organizational goals. In contrast, Chinese owner-managers make sense of their identity merely at interpersonal level. They shape their self-images as trustworthy "friends" on both cognitive and affective dimensions. Chinese owner-managers present themselves as being personally committed to their relationship partners and highlight the importance of being reciprocal, cooperative, flexible, empathetic, respectful of "face", and willing to compromise. Chinese owner-managers verbally attach interorganizational relationship to interpersonal relationship and thus present a more complicated image of self. Some discourses of Chinese owner-managers show similar pattern of sensemaking with British owner-managers. This echoes structural changes of economic ideology as well as legal and contractual infrastructure. The concrete findings support the utility of sensemaking and identity construction as a framework for studying relationship marketing and business networking.

Small businesses are critical to improving economic development in rural areas of South Africa. However, rural entrepreneurs are still faced with challenges and problems which make the success of small businesses, especially in rural areas, uncertain. This paper investigates business environmental, financial and infrastructural factors that influence the success or otherwise of Small and Medium Enterprises (SMEs) in rural areas. Primary data was collected in five rural areas of KwaZulu-Natal (KZN) from a sample of 374 business owners/managers, with respondents completing a questionnaire. Access to finance and skills shortages were the factors that most significantly differentiated between more successful and less successful rural businesses in KZN. The majority of respondents indicated that poor roads/transport and access to electricity were major problems.

Often owner/decision-makers in closely-held small businesses are overloaded with work and can become isolated from novel information that could improve their decisions and ultimately firm performance. These decision-makers become reliant on heuristics to ease their cognitive burdens and develop a strong bias for the status-quo. Research suggests that external counsel and/or informal advisors may help to encourage more thoughtful consideration of situations, thus exposing or alleviating status-quo bias. This paper contributes to the understanding of decision making in small firms by examining relationships between industry association membership and the willingness of decision-makers in such firms to adopt new technologies. Evidence is found suggesting that small firm owners’ access to decision-making information from business associations is related to a greater willingness to adopt new technologies. This is evidence of conscious decision-making that enables their small businesses to go beyond the status-quo.

This explorative study examines the performance, socio-demographics and sustainability orientation of owners of micro, small and medium-sized enterprises’ (MSMEs) in Tanzania, a Least Developed Country (LDC). Based on a literature review, a pre-study conducted with experts, and a main study of 168 MSMEs-owners in Morogoro, the analyses show that sustainability orientation is made up of four factors of which clearly one social factor and one environmental factor. Furthermore, in light of the literature, performance and socio-demographic factors are regressed on sustainability orientation and appear not to have a significant influence. However, at a granular level, there are certain effects observed from performance and socio-demographics on sustainability orientation. In contrast to previous research, this study presents fine-grained insights into how performance and sustainability orientation are developed and how the former determines the latter. In doing so, this study sheds light on entrepreneurship in the informal economy of an LDC, refines the understanding of the sustainability orientation of MSME-owners, and endorses the position that “one size does not fit all” regarding the applicability of Western constructs to LDC settings.

In this paper we propose that a crisis can be avoided by taking countermeasures, which are informed by an Early Warning System. An Early Warning System can help lessen the impact of crisis episodes and provide a systematic approach to the response of small business owners to challenges in their business environment. Following a review of the literature, we undertook data collection in two stages. In stage one, focus groups were conducted with small business owners in four European countries. In stage two we worked with an expert panel to refine and develop a set of indicators for an Early Warning System. It is envisaged that the set of indicators will serve as the basis for further thought and empiricism. We argue that a delay in crisis recognition curtails the scope and time for corrective action.

This collaborative paper aims to reflexively evaluate the versatile and comprehensive application of grounded theory, comparatively using two studies researching the strategic behaviour of small organisations within a small island state. The methodological stance adopted is that of practitioner researchers, critically analysing the research positioning and processes in two large grounded theory studies that mapped the competitive behaviours of some 100 small businesses in the small island EU state of Malta. The study evaluates grounded theory processes and actions taken in the two studies, depicting the systematic collection, comparison and analysis of the data gathered, concept generation, continuous interaction between actions and context, use of in-depth interviews combined with quantitative data, coding, mapping and categorisation of the data collected, and the use of MAXQDA as a viable software tool to carry out grounded theory. This practitioner research study comprises detailed practice-related implications for the use of grounded theory in researching small organisations, in a manner that a novice grounded theory practitioner can adopt and a manager in a small business can appreciate.

KM principles often apply to large companies (more than 200 employees), where issues of general management and skill sets, as well as resources, often require comprehensive and multi-department solutions. However, many small businesses experience the same issues of knowledge sharing and management, but may find boundaries in the development and implementation of programs. How can small- to medium-sized enterprises (SMEs) benefit from KM principles? What areas in the traditional literature immediately apply, and what boundaries arise? Often encompassing multiple roles, managerial practices, and efforts in microcosm, how can these smaller companies provide the structure and impact needed to make KM principles work for them? This work analyses the problems that small businesses face in the collection, dissemination, and storage of company knowledge, including issues of technology, communities of practice, and "stickiness" for best-practice goals. The definitions of small business, as outlined by the European Commission and U.S. Small Business Administration (SBA), will serve as a useful tool for scope and discussion. This research will explore three key classifications of traits — structural or systemic, communication, and qualitative — through a review of the areas in which the challenges of small businesses, because of their size, imply somewhat different approaches to KM.

The rapid pace of technological change has been pushing firms to make their innovation processes more open. However, both inbound and outbound processes are complex to manage, especially for small businesses. These firms have their innovation activities constrained by missing capabilities, financial resources, and market reach. However, the existence of innovation intermediaries may overcome these issues by fostering collaboration among different stakeholders and thus bridging the gap between technological opportunities and user needs. Therefore, the aim of this paper is to analyze how collaborative spaces intermediate small business innovation. A multiple case study comprising five collaborative spaces was carried out. Results indicate how each type of collaborative space may facilitate innovation according to their intermediation roles, type of governance, main members/users, type of knowledge produced, and the core elements of attraction they offer.

This study assesses the motivations, perceived success factors and business problems experienced by entrepreneurs in Vietnam. It also compares the results between the northern and southern regions of the country. Using data from a survey of 378 Vietnamese entrepreneurs in Hanoi and Ho Chi Minh City, results show that Vietnamese entrepreneurs are motivated by the ability to provide jobs for themselves and family members, to gain public recognition, and to prove they can successfully run a business of their own. Important perceived entrepreneurial success factors include friendliness toward customers and a good product at a good price while significant business problems include too much competition, unreliable employees and the inability to obtain both short-term and long-term capital. Results also show a number of city/regional differences in motivation, success factors and perceived success. Implications for policymakers in Vietnam and other emerging economies are also presented.

Rural settings in the United States have characteristics that present a unique context for small business, often portrayed as adverse. Studies of rural entrepreneurs and small businesses, however, frequently fail to provide data on the rural context and its potential relationship to small business, taking for granted presumed attributes and adverse effects. To develop a better understanding of a rural setting's importance, this research investigated effects of rural geo-demographic and socio-cultural features on 76 small businesses. Results demonstrate that rural geo-demography adversely affects marketability of products and services although there is little adversity for small businesses due to constrained resources (financing, technology, and transportation) or labor issues. Business owners manage their businesses consistent with rural socio-cultural values by relying on strong social ties and word of mouth reputation. However, women-owned businesses experience little adversity due to gender stereotypes. The rural setting considered in the study has varying implications for different types of businesses and for business owners according to how long they have lived in the community. Its effects are neither adverse in all respects nor universal for all small businesses.

A strategic network perspective established the theoretical foundation for exploring aspects of business management in 383 small businesses predominantly operating in small communities across the U.S. It was proposed that those owner/managers involved in formal voluntary organizations to promote business effectiveness would differ in their strategic decisions and evaluations of performance from businesses without such formal group affiliations. Business strategies assessed involved the emphasis placed on employees, customers, and community, and the effect of these three variables in explaining four elements of business performance. Networking businesses were found to place more emphasis on strategies dealing with employees, customers, and community than non-networking businesses. Final results suggested that network membership held a direct effect on business strategies, and that these strategies held varying direct effects on perceptions of business performance. Findings offer initial support for strategic network theory as well as practical information for small business owners considering network membership.