Distinguishing micro-businesses from SMEs: a systematic review of growth constraints

Abstract

Purpose -Micro-businesses account for a large majority of Small and Medium Enterprises (SMEs). However, they remain comparatively under-researched. This paper seeks to take stock of the extant literature on growth challenges, and to distinguish the growth constraints facing micro-business as a specific subset of SMEs from those facing larger SMEs.Design/methodology/approach -The study consists of a systematic review of 59 peerreviewed articles on SME growth.Findings -Micro-businesses distinguish themselves from larger SMEs by being ownermanager entrepreneur (OME) centric and are constrained by a tendency to be growth-averse, underdeveloped capabilities in key business areas, underdeveloped OME capabilities, and often inadequate business support provision. Originality/value -The review provides a renewed foundation for academic analysis of micro-business growth, highlighting how micro-businesses are distinct from larger SMEs. At present, no systematic literature review on this topic has previously been published and the study develops a number of theoretical and policy implications. Research limitations/implications -

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“…Micro-businesses are numerically dominant in every country's economy. Although micro-firms account for a large majority of smes, they remain comparatively under-researched (Gherhes et al 2016). The literature review in-dicates a gap in research on micro-enterprises.…”

Advancing Entrepreneurial Leadership as a Practice in MSME Management and Development

“…The literature (e.g., Ahmad ; Ates et al ; Blackburn, Hart, and Wainwright ; Gherhes et al ; Mazzarol, Reboud, and Soutar ) recognized the lack of business experience of their owner–managers in the field of business, limited technical abilities, inadequate managerial capabilities, lack of processual planning at business level, and in some cases lack of confidence and entrepreneurial training as contributing factors. Furthermore, Mwaanga () commented that operational skills (including accounting and finance, business planning, quality control, health and safety regulations, marketing, and human resource management) are often the sources of management and development complications in MSMEs.…”

A Review of Critical Success Factors Which Drives the Performance of Micro, Small and Medium Enterprises

“…This also depends on the motivation for starting the business, whether the owner was pushed or pulled by certain factors (Asah et al, 2015). The management skills rather than technical skills (Asah, et al, 2015;Bager, Jensen, Nielsen & Larsen, 2015) and the growth motivation of founders is very important and are the leading factors in the growth, success and survival of an enterprise (Feindt, Jeffcoate, & Chappell, 2002;Halabi, Barrett, & Dyt, 2010;Isaga et al, 2015;Gherhes et al, 2016). In addition to owner involvement, lean management structure results in optimal performance in MSMEs (Coles, Daniel & Naveen, 2008;Guest, 2009).…”

“…Recent research highlights the importance of MSMEs in employment creation, poverty alleviation and economic development in both developed and developing economies (Asah, Fatoki & Rungani, 2015;Isaga, Masurel & Van Montfort, 2015;Massa, Farneti & Scappini, 2015;Yazdanfar & Öhman, 2015;Gherhes, Williams, Vorley & Vasconcelos, 2016;Jitmaneeroj, 2016;Padachi & Bhiwajee, 2016;Valaei, Rezaei & Ismail, 2017). However, the biggest challenge which some MSMEs face is being able to sustain their performance, and hence succeed and survive (Ates, Garengo, Cocca & Bititci, 2013;Lampadarios, 2016).…”