Growth Strategies for Small Firms: Principles and Case Studies

Abstract

Chad Perry lectures at the Queensland Institute of Technology, Brisbane, Australia. This paper considers growth strategies for small firms after they have become established after start-up. Terms describing growth strategies are presented and principles for choosing between the strategies are developed. It is established that growth strategies should be niche strategies and hypothesized that the most appropriate strategies are market development and product development strategies, in that order. Case studies of small Australian growth firms are examined to verify those principles. The cases demonstrate the soundness of the hypotheses developed and also that a consolidation phase is required after each growth surge. They also suggest that the first growth surge often results from a disturbance event and requires credible examples of mentors.

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