In Pursuit of Frameworks for the Development of Growth Models

t research described in this issue of the Journal is to develop a better understanding of the factors influencing the growth of the small business. None of the papers in this issue produce a comprehensive theoretical model: indeed, the authors of this introductory paper have some scepticism as to whether this is possible. However, there is some pressure in this respect for a key characteristic of much of the current research on the growth of small business is that it is seeking to be relevant to policy makers in both the private and public sector who are wanting comprehensive guidance as to how to assist growth companies. This is shaping approaches taken. This paper draws upon the introductory portion of a submission to the EIASMBECSB Conferencel: this submission sought to explore some conceptual and methodological problems in developing and testing a growth model of business enterprise development. This present contribution concentrates solely upon a review of some of the major academic approaches to this subject and discusses their strengths and weaknesses. As such it provides a broad introduction to the other papers in this volume. It begins, however, with a brief review of the policy context. The Policy Context In the last half-dozen years there has been substantial shift in the interest of policy-making organisations, private and public, and in small business ’assistance’ organisations towards a greater focus on the ’growing ’ company. ’Picking and stimulating winners ’ has become a major concern of small firms assistance organisations2. One important reason for this is the sheer size and differentiation of the small firm sector in relation to the limited resources available to assist it which begs questions of where the ’best’ returns can be obtained given limited inputs of support. But it also reflects a number of other factors including:. A change in emphasis in respect of small firms policy from employment creation to issues more to do with smaller firm contribution t