Regulation and growth-oriented small businesses in North-West England

Abstract

Purpose The purpose of this paper is to examine the ways in which growth-oriented small and micro-businesses (SMBs) are affected by regulations. Case studies from North-West England are used to investigate the relationship between attitudes and responses to regulation and the characteristics of business growth. Design/methodology/approach This research examines the relationship between regulation and growth using eight case studies of SMBs. The selected cases are proactive in seeking new market opportunities and innovative in terms of product development or business process. Findings Case studies confirm that owner-managers of SMBs experience high levels of regulatory burden. However, some growth-oriented businesses also recognise the advantages in being proactive in seeking regulatory knowledge. These advantages were particularly prevalent in cases where growth is driven by product innovation in relatively new product markets. Research limitations/implications The study is based on a limited number of case studies in one region of England. Even so, interviews facilitate probing to increase understanding of the underlying reasons for attitudes towards regulation. The cases demonstrate that even very small businesses can use regulatory knowledge as a basis for business growth. Practical implications The findings suggest that networking in order to engage with regulatory regimes can generate competitive advantages and open up new market opportunities for small businesses. Originality/value This research contributes towards the debate on the impact of regulations on the economy at the micro level and in doing so highlights important nuances in the relationship between business growth and the regulatory environment.