THE ENTREPRENEUR'S CHOICE: GROWTH INHIBITING BUSINESS PRACTICES OF SMEs IN SCOTLAND AND IRELAND

Abstract

It is critical to the economic development of a given society that entrepreneurs initiate and grow new ventures. Even though the maturation process is unique for every business, there are predictable patterns that occur in sequential and progressive stages of the maturation process (Eggers, Leahy and Churchill, 1994; Hynes, 1992; Dodge and Robbins, 1992; Churchill and Lewis, 1983). Hay and Kaushad (1994) suggested that decisions made by entrepreneurs effect the growth of a business. Therefore, this paper assumes that the choices and/or decisions, as made by the entrepreneur, effects the growth of SMEs. The purpose of this study was an attempt to identify those business choices and/or decisions that inhibit the growth of Irish and Scottish SMEs. The researchers utilised an American model the SME growth patterns developed by Eggers, Leahy and Churchill. The business practices that were ascertained to be growth inhibiting were identified as such within the contexts and environments in which they were found. As an analysis of the findings from this study indicates, the entrepreneur is the primary controlling factor of the growth for SMEs. It may be that the aspiration or desire for growth exists, however, it is not translated into action due to the inability or unwillingness of the entrepreneur. The result is the firm never reaches its maximum growth potential.