A review of small business literature part 2: Birth, growth and death of the small business

Tonge, Jane (2001) A review of small business literature part 2: Birth, growth and death of the small business. UNSPECIFIED. Manchester Metropolitan University. ISSN 1471-857X

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Abstract

Small business scholars have devoted much effort to examining the variations in the birth of small firms over time, space and sector (Storey, 1994) as well as the factors which impact on small business growth and demise. A review of small business and entrepreneur literature reveals many determinants of business success and growth including entrepreneurial and environmental factors. At the same time, the 'barriers to growth' literature (Storey, 1994) identifies key barriers and problems for small firms. However, no clear understanding, predictive theory or interrelated model emerges from the small business literature which can determine whether a small business will start up, grow, succeed or fail. Similarly, no simple pattern or ideal-type personality for pre-determining characteristics of business success or demise is identified (Ray 1993). Rather, the literature points towards a complex set of interrelated situational and contextual factors (Fielden et al., 2000) that increase or decrease the probability that an enterprise will become a successful and growing small business.