Sage Journals: Discover world-class research

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.

Get full access to this article

View all access options for this article.

References

Arena, A., and Rich, G. (1977), A study of small businessmen: their characteristics and decision making processes. MBA dissertation, University of Melborne.

Bechofer, G. Elliot, B. Rushforth, M. , and Bland, R. (1974), Small shopkeepers: matters of money and meaning, The Sociological Review, November, pp 471-480.

Boswell, J. (1972), The Rise and Decline of Small Firms, London: Allen and Urwin .

Bureau of Industry Economics (1979), The small business unit in non-manufacturing activities , Journal of Industry and Commerce, 21, December, pp 10-12 .

Fargher, K. (1975), Problems of small manufacturing business in Australia. PhD thesis University of New South Wales.

Glueck, W. F. (1980), Business Policy and Strategic Management, Tokyo: McGrawHill, Kogakusha .

Golby, C. , and Johns, G. (1971), Attitude and Motivation, Dublin: Irish Productivity Centre .

Goldstein, J. (1981), Shapero's laws, In Business, May-June: pp 14-17.

Hartley, D. (1978), The Hartley Computer Group of Companies 1977/1978 Annual Report, Brisbane: Hartley Computers .

10.

Kotler, P. (1976), Marketing Management, Englewood Cliffs, N.J.: Prentice-Hall .

11.

Mintzberg, H. , and Waters, J. (1982), Tracking strategy in an entrepreneurial firm , Academy of Management Journal, 25(3), pp 465-499 .

12.

Meredith, G. G. (1982), Small Business Management in Australia, Sydney: McGraw-Hill .

13.

Petersen, R. A. (1984), Small business management assistance: needs and sources , American Journal of Small Business, IX(2), pp 35-45 .

14.

Porter, M. E. (1980), Competitive Strategy, New York: The Free Press .

15.

Rumelt, R. P. (1979), Evaluation of strategy: theory and models. In Schendel, D., and Hofer, C. (1979), Strategic Management, Boston: Little, Brown .

16.

Shapero, A. (1975), The displaced uncomfortable entrepreneur, Psychology Today, November: pp 83-88.

17.

Townsend, R. (1970), Up the Organisation, New York: Knopp .

18.

Williams, A. (1975), A study of the characteristics and performance of small business owner/managers in Western Australia. PhD thesis, University of Western Australia.

19.

Wiltshire Committee (1973), Report of the Committee on Smal Business, Canberra: Department of Trade and Industry .

Growth Strategies for Small Firms: Principles and Case Studies

Abstract

Get full access to this article

References