Analysis of Growth Stages in Small Firms

Description

– Analysis of Growth Stages in Small Firms –

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Abstract

Analysis of growth stages in small firms, a study of selected firms in Enugu metropolis is a research aimed at critical assessment of the metamorphosis in the growth stages of small firms and the factors incidental to the growth or retardation in the life of the firms in the state.

Considering the critical role small firms play  in  catalyzing  rapid economic development, growth in stages of a firm depicts a favorable business environment where the available resources  are  efficiently utilized to achieve organizational objectives.

But when growth become less dynamic or retards, firms shrink in size thereby showing the pace or prospect   of   economic growth.

The variable responsible for these phenomenon are encapsulated in the chapters as follows: Chapter one introduces the background of the study, statement of the problem, objectives of the study, research questions, research hypothesis, scope of the study, organization of the study and the profile of selected small firms.

Chapter two literatures review. Chapter three dwelt on the research methodology used for analysis of research findings.

Chapter four presents the data gathered, analysis and interpretation of the data, while  chapter five summarizes research findings, conclusion and recommendations as well as suggested areas for further research study.

Introduction

1.1 Background of the Study

Every business passes through identifiable stages in its life span. Several growth strategies related to business management approaches  have been presented in the literature.

Managing growth is a  major strategic issue for a growing firm (Arbaugh and Camp, 2000). Strategy is the most important determinant of firm’s growth (Weinzimmer, 2000). Among high-growth firms, Dsouza (1990) identifies three primary strategic clusters

• Build strategy, emphasis on vertical
• Expand strategy, emphasis on resource allocation and product differentiation; and
• Maintain strategy, emphasis on market dominance and/or efficiency.

Patel, (1995) gives an insight into how firm, particularly small firms, graduate from one stage of growth to another. In his  analysis, (Patel, 1995) asserts that firms can be understood as progressing linearly overtime from one stage to another as one management problem after another is solved.

Some firms remain small for years, while other small firms grow into medium- sized or even large organizations in a relatively short period. The possibility of small firms re-experiencing early crisis stages would also be seen to be excluded.

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