Distinguishing micro-businesses from SMEs: a systematic review of growth constraints. Issue 4 (21st November 2016)

• Record Type: Journal Article
• Authors: Gherhes, Cristian; Williams, Nick; Vorley, Tim; Vasconcelos, Ana Cristina
• Is Part Of: Journal of small business and enterprise development. Volume 23:Issue 4(2016)
• Page Start: 939
• Page End: 963
• Publication Date: 2016-11-21
• Subjects: Entrepreneurship -- Systematic literature review -- Policy -- Small and medium enterprises -- Growth constraints -- Micro-business; Small business -- Great Britain -- Periodicals; New business enterprises -- Great Britain -- Periodicals; Industrial management -- Great Britain -- Periodicals; Entrepreneurship -- Great Britain -- Periodicals; 658.022
• DOI: 10.1108/JSBED-05-2016-0075
• Languages: English
• ISSNs: 1462-6004

Abstract

Abstract : Purpose: Micro-businesses account for a large majority of small and medium enterprises (SMEs). However, they remain comparatively under-researched. The purpose of this paper is to take stock of the extant literature on growth challenges and to distinguish growth constraints facing micro-businesses as a specific subset of SMEs from those facing larger SMEs. Design/methodology/approach: The study consists of a systematic review of 59 peer-reviewed articles on SME growth. Findings: Micro-businesses distinguish themselves from larger SMEs by being owner-manager entrepreneur (OME) centric and are constrained by a tendency to be growth-averse, underdeveloped capabilities in key business areas, underdeveloped OME capabilities, and often inadequate business support provision. Research limitations/implications: The use of keywords, search strings, and specific databases may have limited the number of papers identified as relevant by the review. However, the findings are valuable for understanding micro-businesses as a subset of SMEs, providing directions for future research and generating implications for policy to support the scaling up of micro-businesses. Originality/value: The review provides a renewed foundation for academic analysis of micro-business growth, highlighting how micro-businesses are distinct from larger SMEs. At present, no literature review on this topic has previously been published and the study develops a number of theoretical and policy implications.