Myths surrounding growing a business - A focus group based study on behalf of the Small Business Service

This study was undertaken by Durham Business School on behalf of the Small Business Service from February to July 2006 and is intended to provide a better understanding of the perceptions of small business about growth. In total, 73 small businesses took part in 10 in-depth focus groups conducted throughout England. The sample was deliberately structured to include a range of both micro (under ten employees) and small businesses (between 10 and 50 employees). The aim was to capture the views of businesses with a track record of growth, and contrast them with newer and smaller businesses with successful operating experience, but relatively static levels of employment and/or turnover.While extant research describes the barriers to growth faced by businesses, this study tries to distinguish between those barriers that are real and others which owner-managers believe to be real, but are, in fact, exaggerated or non-existent. It is proposed that owners of younger businesses are susceptible to these misperceptions or ‘myths’, and as a result are less inclined to grow their business. The experiences of such businesses are contrasted with those of more mature businesses with growth experience, to illustrate that some of these beliefs present a lower barrier than imagined, and the available range of solutions.[...]