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Having Arrived: The Homogeneity of High‐Growth Small Firms

Author

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  • Yolande E. Chan
  • Niraj Bhargava
  • Christopher T. Street

Abstract

This study explores the homogeneity of small firms that have achieved and sustained high growth. Using a recent population of the 50 “Best Managed” Canadian firms identified as achieving high business growth for three or more consecutive years, firm homogeneity in terms of current management challenges is analyzed. In contrast to the rich body of literature available regarding the heterogeneity of managerial challenges and patterns during small business growth and development, this study finds that once small businesses begin to sustain high growth, their reported management challenges converge. We find that, controlling for location and performance, the high‐growth small firms in our population experience similar management challenges regardless of the specific firm size, revenue level, or industry. Our results challenge the “received wisdom” that suggests the managerial challenges faced by small firms during their business growth and development always vary. Management implications and future research directions are discussed.

Suggested Citation

  • Yolande E. Chan & Niraj Bhargava & Christopher T. Street, 2006. "Having Arrived: The Homogeneity of High‐Growth Small Firms," Journal of Small Business Management, Taylor & Francis Journals, vol. 44(3), pages 426-440, July.
    • Handle: RePEc:taf:ujbmxx:v:44:y:2006:i:3:p:426-440
    DOI: 10.1111/j.1540-627X.2006.00180.x
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