Growth

Abstract

It has already been pointed out that most small firms do not grow to any size. They are life-style businesses' that provide the owner-manager with an acceptable income but, more important, a comfortable life-style. However even they must develop in their early stages to a certain size if they are to survive. Of more interest are 'growth businesses', but even these often grow to a certain size and then falter or stagnate. Break points frequently occur at around five employees and 20 employees. Going beyond 20 employees often means the way the business is organised has to change.