Growth Strategy in Small Business Organisations – A Study on Madhya Pradesh & Maharashtra

Majumdar, Satyajit (2005) Growth Strategy in Small Business Organisations – A Study on Madhya Pradesh & Maharashtra. TAPMI, Manipal.

TWP67_05_GrowthStrategy small business.pdf

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The small scale manufacturing organisations contribute significantly in the industrial development due to high employment generating capability and low investment requirements. A strong literature support is available on causes of failure of small organisations and the factors influencing them as compared to success and growth in this sector. The paper is an attempt to address this gap. Many researchers concluded that the success of small manufacturing firms should not only be measured with the help of profitability and market share but the potential factors such as management focus, internal functions and integrations should also be analysed. The paper is based on two research questions – ‘Are there factors which are important for growth of small manufacturing organisations in India ?’ and ‘Do these factors are of equal importance for growth ?’ An entrepreneurial organization is considered to take birth, grow and achieve maturity before death. But many small firms necessarily do not make clear transition from one stage to the other. The transition is often in only one if the three dimensions namely, resources of the entrepreneur(s), the firm and strategy. Hypotheses were framed based on literature review on these three dimensions and discriminant analyis was carried out to distinguish the factors influencing growth. The factors were classified as low, medium and strong depending on the degree of predictions by the respective discriminant function. The paper concludes that the entrepreneurs’ style influences growth of small businesses organisations. Small manufacturing organisations consider technology, improvement in manufacturing capability to get cost advantage as the key determinant for growth. They are also sensitive towards changes in product and processes to meet the market challenges but they have moderate focus on application of computer and information technology. These organisations have high dependence on government on infrastructure support.

Item Type: TAPMI Working Papers
Uncontrolled Keywords: Entrepreneurship, Growth Strategy, Growth Planning, Small Manufacturing Organisations, Organisation Life Cycle.
Subjects: Human Resource Management
Divisions: Human Resource Management
Depositing User: Ms. Vanitha K
Date Deposited: 16 Nov 2018 06:51
Last Modified: 09 Jan 2019 09:13

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