Nascent Entrepreneurship

Small Firm Growth has two purposes - to review the extant empirical literature on small firm growth by focusing on small and medium-sized firms (SMEs) and to suggest a framework for integrating our knowledge on small firm growth to guide future research. The authors identify a number of key themes: the conceptualization of small firm growth, assessing small firm growth, factors driving or hindering growth, modes of growth (such as organic growth versus acquisitions), growth stages and transition, and the effects of small firm growth. It first discusses the nature of the phenomenon of small firm growth and its relation to entrepreneurship as well as size and age. It then moves on to how growth can best be assessed. A major section is devoted to findings on factors that contribute to or hinder firm growth. Following this it offers a section on how small firms grow, if and when they grow at all. In particular, it examines organic growth versus acquisitions; growth through networking and alliances, and international expansion. The next topic treated is 'growth stages and transitions' and the effects of growth in terms of profitability and job creation. Finally, the authors propose a framework for guiding future research and furthering management theory and practice on small firm growth.