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SMEs' business growth model: a medium to big effort
by Hui-Hong JK Li, Kim Hua Tan
International Journal of Management and Enterprise Development (IJMED), Vol. 1, No. 3, 2004
Abstract: During the past decade, a major concern has been the failure of small and medium-sized manufacturing firms (SMEs) in transforming themselves into large firms (MNCs) both regionally and globally. Given the relative rarity of the typical small business making substantial growth, academics, management experts and governments in many countries have been keen to discover ways in which small business growth can be encouraged. What kind of strategies do successful SMEs use to grow, and, conversely, what constraints prevent growth? Unfortunately, little is available in the existing literature on SMEs business growth model. So far, current approaches to business strategy has been developed and tailored for MNCs. Using cases in three companies, this paper explores the business models that have been successfully used by medium-sized SMEs in transforming into emerging MNCs. A framework for business growth strategies is proposed and its implications for SMEs are discussed.
Online publication date: Thu, 13-May-2004
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