ABSTRACT
The main objective of this study was to conduct an in-depth analysis of the determinants of small firm growth, and in particular to explore the relationship between the growth of established small firms and the characteristics of their owner-managers. The main hypothesis, as discussed in the previous chapter, was that the characteristics of the owner-manager have a significant effect on the performance of the firm, both through their abilities and experience and through the management strategies and business practices they choose to adopt. In other words, the emphasis in the study was placed upon the extent to which internal as opposed to external variables account for growth in the small firm. Furthermore, given the geographical variations in the growth performance of surviving small firms referred to in Chapter 1, we were interested in the extent to which there were regional differences in the explanation of small firm growth. To properly test these hypotheses a detailed interview survey of established small firms was undertaken. This provides data on the range of variables required to construct a comprehensive multivariate model of small firm growth. As Storey (1994) correctly argues, it is only with the construction of such models that the process of small firm growth can be properly investigated.
