| Summary: | The purpose of this report is to understand, from an owners’ perspective, the limiting factors regarding growth in Small and Medium Enterprises (SMEs). Theoretically we discuss attitudes towards growth, the value of available resources, understanding the importance of business timescales, the motivations of the owner, ambitions for the business and reactions to uncertainty. The major findings are summarized:
• The SMEs owner is a limiting factor
• SMEs owners have difficulty engaging with their employees
• SMEs have difficulty growing in niche markets
• Unfavorable economic outlook changes a SMEs owner’s mindset towards business survival
The report recommends a decoupling of the owner from the business. Once personal ambition is sated, the owner’s motivation can diminish, which could be of detriment to the business. The owner should separate from operational activities in order to direct the business. To achieve this, owners should improve knowledge management within their business and encourage employee responsibility and ownership. SMEs need to expand into new markets using existing core business operations and through associated products/services via strategic alliances and partnerships. SMEs should implement strategic planning through times of economic uncertainty to ensure they are laying the foundations for future growth.
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