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Untangling the relationship between small and medium-sized enterprises and growth: a review of extant literature

Author

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  • Luis Javier Garcia-Martinez

    (Universidade de Vigo)

  • Sascha Kraus

    (Free University of Bozen-Bolzano
    University of Johannesburg)

  • Matthias Breier

    (Lappeenranta University of Technology)

  • Andreas Kallmuenzer

    (Excelia Business School)

Abstract

The importance of small and medium-sized enterprises (SMEs) increased in the recent years, particularly since 2007, with the intention to promote growth. This study aims to analyse the relationship between growth and SMEs and the different elements influencing this linkage. For this purpose, a systematic literature review was implemented. The analysis identifies seven factors affecting SMEs’ financial performance: size, age, internationalization, network, innovation, public institutions, and capital structure. These elements are significantly related with smaller firms and growth, influencing firms’ aptitudes towards performance. In addition, there seven factors could influence each other increasing the possibilities to grow. Further research investigating this literature gap is recommended.

Suggested Citation

  • Luis Javier Garcia-Martinez & Sascha Kraus & Matthias Breier & Andreas Kallmuenzer, 2023. "Untangling the relationship between small and medium-sized enterprises and growth: a review of extant literature," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 455-479, June.
    • Handle: RePEc:spr:intemj:v:19:y:2023:i:2:d:10.1007_s11365-023-00830-z
    DOI: 10.1007/s11365-023-00830-z
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