1988 volume 20(10) pages 1365 – 1383
doi:10.1068/a201365

Cite as:
O'Farrell P N, Hitchens D M W N, 1988, "Alternative theories of small-firm growth: a critical review" Environment and Planning A 20(10) 1365 – 1383
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Alternative theories of small-firm growth: a critical review

P N O'Farrell, D M W N Hitchens

Received 8 June 1987; in revised form 11 December 1987

Abstract. This paper contains a review of alternative theories which have been developed in order to explain growth and change in the small manufacturing firm. Models of small-firm growth derived within the industrial economics literature are evaluated together with stage models of growth and stochastic models. Social and psychological perspectives on growth are reviewed and the spatial dimension is also considered. We argue that mot previous theories of small-firm growth place too little emphasis upon the difficulties which small owner-managed firms have in meeting the competitive requirements of the marketplace.

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