Contrasting Approaches to Preparedness: A Reflection on Two Case Studies

Background

The first cluster of SMEs I worked with, although they were quite different in location and purpose, all had one thing in common: they were all relatively localised firms, experiencing fairly linear growth patterns, in relatively predictable sectors, that were yes, subject to change and competition, but by and large, the basic business models held true for quite long periods of time. What they seemed to be experiencing was growth in line with classical stage model theory, and as predicted by Greiner (1972), at a certain point, they were coming up against a ‘crisis of control’. Classical ‘stage models’ of growth for small firms, whilst they differ in their detail, identify a series of phases through which growing businesses progress, each presenting different managerial challenges. Stage models suggest that an appropriate response from the owner-manager (OM) is required if the firm is to grow effectively, or indeed to survive (Greiner 1972; Churchill & Lewis 1983; Scott & Bruce 1987).