The condition of smallness: how what it means to be small deters firms from getting bigger.

Abstract

We consider why most small firms remain small. Employing an inductive analysis of responses from a survey of 2,521 small business owners about employment regulation, we examine the nature and effects of smallness. We found that owners choice making combines with perceptions about their resources to produce a condition of smallness. The condition of smallness is conceptualised as the circularity perceptions, attitudes and consequent practices that reflect lack of knowledge, time and capability. We argue that this condition of smallness inhibits growth to create a wicked problem that explains why most small firms don't grow