Growth Strategy in Small Entrepreneurial Business Organisations: A Conceptual Model

Abstract

The research article focuses on two major considerations namely growth planning in small organisation as entrepreneurial as well as strategic activity. Growth of small organisations is influenced by the background/resource of the entrepreneur, the nature of the firm, and the strategic decisions taken by the owner/manager. Entrepreneurs of the small businesses are the sole strategic decision makers and their close control supports easy translation of entrepreneurial vision into action. Their ability, need and opportunity are the major determinants of growth. Small business entrepreneurs show different motives and also have different attitude and behaviour towards growth. Also a given set of entrepreneurial characteristics beneficial in one context may work adversely in the other. A fit between strategy, structure and processes is more favourable to the performance. In this article a conceptual model on growth strategy in small entrepreneurial organisations is presented. Three propositions are based on the theoretical framework are - (1) Personal ambition and vision of the entrepreneurs drive the growth of small organisations, (2) The entrepreneurs of small organisation search for strategic fit in the market and the environment, and (3) The entrepreneurs of small organisation continue to search better fit in the market. The propositions need to be validated with the help of empirical work. The article takes an integrated view on all these aspects of small business management while explaining the growth strategy. The propositions made in this article reflect strategic and entrepreneurial dimensions of growth and takes a view that entrepreneurial motivation is different from growth motivation.