The growing business

The growing business - THE GROWING BUSINESS Why the...

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THE GROWING BUSINESS Why the interest in growth? In recent times there has been a substantial shift in interest and emphasis towards the growing business. This shift is evident in policy making, in the application of small business support and in research. A desire to maximise the contribution of small business to the economy by applying resources where they are most effective. If support has to be rationed, then concentrate it where one gets the best return. Promoting growth = producing competitiveness = promoting wealth creation. To increase numbers of small business is not equal to increasing jobs. New business have high casualty rates = wasted effort. Strong indigenous base derives from growing small firms. Absence of a German Mittelstand. Growth businesses attractive to small business support organisations (SBSO’s).
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GROWTH USA has 20% more businesses per head 40% more are achieving high growth and fewer very small businesses 60% turnover growth in 3 years (OECD 2006) France 2.09% Japan 2.24% UK 5.80% USA 8.5%
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Why help start ups? For Against I. Haven’t got enough start-ups in quantity or quality II. More jobs (37% net in >20) III. Winners not able to be picked (established firms) IV. Competition V. Offer variety and choice VI. Service growth business VII. Entrepreneurial culture VIII. Unemployed and others “trained entrepreneurially” IX. Assist minorities / localities X. Ideology – social market economy I. Happens anyway II. Greater displacement III. High failure rates IV. Cannot predict success V. Limited resources
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Growth in …………………………….? Share value Turnover Profile / Image Net worth Return / Investment No of Customers Profit Size of Premises Market Share Employment Standard of Service Export / Import Substitution Added Value Innovations / Patents New Products / Services
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There has been a considerable body of literature embracing very different approaches to understanding the growth process. These can be broadly divided into the following categories: Approaches exploring the impact of the entrepreneurial personality and capability on growth including the owner manager’s personal goals and / or vision. Approaches seeking to characterise the way the small organisation develops and influences, and is influenced by, the owner manager. Approaches broadly embraced under the term “business” which focus upon the importance of business skills and the role of functional management, planning, control and formal strategic orientations. Approaches which are more macro in scope and which usually have their academic base in industrial economics. These include sectoral approaches pertaining to regional development, a focus upon specific industry sectors or sub-sectors, for example, high-technology firms. There are obvious overlaps between these approaches.
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The growing business - THE GROWING BUSINESS Why the...

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