Small business growth : spatial and non-spatial aspects of development
Small business growth : spatial and non-spatial aspects of development
The geography of employment changes in the UK shows consistent North-South contrasts over and above those which can be attributed to sub-regional trends. The birth and growth of small firms have been shown to contribute to this differential performance. This study aims to provide a better understanding of the process of small business growth and of how and why it varies between different types of firm and different regions. The literature on the development of the small firm is reviewed and a critical appraisal is made of life-cycle models of business growth. Results are then presented from a survey of 118 independent and owner-managed firms in the plastics processing sector. Interviews were carried out in Lancashire and Cheshire in the North West of England and Hampshire, Dorset and Wiltshire in the South. The study found that the growth potential of small firms will vary depending on their market function and the abilities of their owner-managers. A very small proportion of firms have the potential for rapid growth; these `high fliers' were run by owner-managers more experienced in professional management and with more opportunist, profit-maximising goals. As a consequence of growth, the high fliers faced a number of constraints, mainly related to difficulties acquiring key business inputs such as finance, skilled staff, technical advice, and premises. While contrasting the market and product orientation of the fast and slow growth firms, the study concludes that the fortunes of both are inextricably linked to the stategies of large firms. There was no consistent or widespread regional variation in the characteristcs of the firms. However, those differences that did occur can be related to structural influences through the nature of incubator firms and market opportunities. Reasons are suggested for the absence of more widespread regional variation. Finally, suggestions are made for policy and further research arising from the study.
University of Southampton
1989
Peters, Ian Joseph
(1989)
Small business growth : spatial and non-spatial aspects of development.
University of Southampton, Doctoral Thesis.
Record type:
Thesis
(Doctoral)
Abstract
The geography of employment changes in the UK shows consistent North-South contrasts over and above those which can be attributed to sub-regional trends. The birth and growth of small firms have been shown to contribute to this differential performance. This study aims to provide a better understanding of the process of small business growth and of how and why it varies between different types of firm and different regions. The literature on the development of the small firm is reviewed and a critical appraisal is made of life-cycle models of business growth. Results are then presented from a survey of 118 independent and owner-managed firms in the plastics processing sector. Interviews were carried out in Lancashire and Cheshire in the North West of England and Hampshire, Dorset and Wiltshire in the South. The study found that the growth potential of small firms will vary depending on their market function and the abilities of their owner-managers. A very small proportion of firms have the potential for rapid growth; these `high fliers' were run by owner-managers more experienced in professional management and with more opportunist, profit-maximising goals. As a consequence of growth, the high fliers faced a number of constraints, mainly related to difficulties acquiring key business inputs such as finance, skilled staff, technical advice, and premises. While contrasting the market and product orientation of the fast and slow growth firms, the study concludes that the fortunes of both are inextricably linked to the stategies of large firms. There was no consistent or widespread regional variation in the characteristcs of the firms. However, those differences that did occur can be related to structural influences through the nature of incubator firms and market opportunities. Reasons are suggested for the absence of more widespread regional variation. Finally, suggestions are made for policy and further research arising from the study.
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Published date: 1989
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Local EPrints ID: 461601
URI: http://eprints.soton.ac.uk/id/eprint/461601
PURE UUID: c50003d1-67c0-4c0d-81f7-39cbc45e5eea
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Date deposited: 04 Jul 2022 18:50
Last modified: 04 Jul 2022 18:50
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Author:
Ian Joseph Peters
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