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Alvarez, Karel D. Dr. Raymund Habaradas

Azul, Augusto Levi M.

COB505M-2019

June 20, 2019

Factors that affect the Growth of Small Business Enterprises

Abstract

There is a certain process that develops a model relevant to small and growing businesses that
delineates five stages of firm development. These stages are: (1) existence--concerned with
garnering customers and delivering the product or service contracted for; (2) survival--firms have
demonstrated that they are workable business entities, but the key question becomes whether
there is enough money for the firm to break even and stay in business; (3) success--here the
decision facing owners is whether to exploit the company's accomplishments and expand or keep
the company stable and profitable, providing a base for alternative owner activities; (4) take-off--
concerned with how to make the firm grow rapidly and how to finance this growth; and (5)
resource maturity--companies have the advantages of size, financial resources, and managerial
talent and will be a formidable force in the market if they retain their entrepreneurial spirit. Each
stage is characterized by an index of size, diversity, and complexity and described by five
management factors: managerial style, organizational structure, extent of formal systems, major
strategic goals, and the owner's involvement in the business. In addition, this research identifies
eight factors prominent in determining firm success or failure. They include: financial,
personnel, systems and business resources and the owner's goals for him/herself, operational
abilities in doing important jobs, managerial ability and willingness to delegate, and strategic
ability for looking to the future. Knowing which development stage the firm is in will help
managers, consultants, and investors make more informed choices and prepare the company for
later challenges.

Keywords: Firm control, Management skills, Firm performance, Firm growth, Growth
strategies, Business stages, Startups, Established firms, Growth firms, Expansion firms, Firm
management, Firm survival
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The study aims to know the factors that affect the growth of small business enterprises

particularly in the Philippines. It will also help future business owners and current business owners

to have an idea on things that are needed to consider to make the business grow and what are the

factors affecting it. To achieve the goal, the researchers will conduct an intensive research and

interviews to gather data and information to small business owners in Metro Manila. The

researchers will also provide sampling methods through online survey if possible.

Research questions

For this proposed study, we seek to answer the following questions;

1. What are the major factors that affects the growth of small business enterprises in the

Philippines?

2. How do small businesses adapt to economic changes?

3. What are the key factors to consider in determining the growth of a small business?

Keywords: . Business enterprise; economic growth; small business;

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Works Cited

Lewis, Virginia L. and Churchill, Neil C., The Five Stages of Small Business Growth

(1983). Harvard Business Review, Vol. 61, Issue 3, p. 30-50 1983. Available at

SSRN: https://ssrn.com/abstract=1504517