You hear, or read so much about small business being the backbone of the economy,
Small Business growth can mean problems
about economic recovery by small business growth. What you don’t hear about are small business growth problems and why some small business choose not to grow. An article I read recently dealt with a few of the reasons. While written for the American market I’m sure those of us in business worldwide can totally relate.
Small Business Growth Problems
Here are just 2 examples of issues that a business owner faces when the business grows.
1 – Bureaucracy. With growth comes more government regulation and bureaucracy, more forms to fill out and paper work in general, greater responsibilities and with this more costs. Unless you have a background business administration the likelihood or having to pay for extra help in high. Whether this means employing full time, part time, or paying a consultant the extra costs come out of any extra profits from business growth. Some business owners make a decision to ‘keep it simple’.
2 – Loss on control. With growth comes the issue of delegation and loss of control by a business owner. When an owner has ‘raised’ his/her business from baby to toddler and beyond, being in charge of ‘everything’, loss the control can be hard to take. It means relying on the skills and expertise of those you have employed as well has implementing some sort accountability and processes to safe guard the business. It may mean getting a little bit corporate.
So some owners decide not to grow. Is this a bad thing? No, not everyone aspires to be Bill Gates, or Richard Branson, nor should they, the small business growth problems may be just not worth it. Business commentators have touted ‘grow or die’ so it seams as though there is some sort of failure associated with businesses that do not want to grow. Many business owners are quite happy carving out their niche, providing a living and having a life outside of business for themselves and their families and that IS just fine.
You can read the full article here: Why Some Small Entrepreneurs Choose Not to Grow Their Businesses
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