Impact of internal and external factors on the performance of fast-growing small and medium businesses

This study aims at broadening the understanding of small and medium businesses (SMBs) as a significant driver of economic development, as particularly related to their market performance, as well as the impact of the internal and external environment on it. The study was conducted on Croatian fast-growing SMBs, i.e. gazelles. However, the scientific and practical contribution of the research transcends national borders, as there are not many similar studies carried out in transitional or small countries or those in the field of fast-growing businesses. The paper provides a more realistic picture of the variability of environmental factors, as well as of the variability of SMBs performance/effectiveness, as well as includes the period of economic crisis, jeopardising not only the performance, but also the very survival of businesses in general. This study confirmed that eight internal factors (business entity size, life cycle stages, technology and product innovation, organizational autonomy, centralization and formalization, market roles, and type/importance of goals) and three out of the five analyzed external factors (general state of the economy, sector, and type of customers), depending on the period (life cycle stage and general state of the economy), exercise a more or less significant impact on the performance/effectiveness (sales growth and achievement of goals) of SMBs