Barriers for Growth of a SME in the Swedish Manufacturing Industry : A case study of a manufacturing company

Abstract:

Title: Barriers for growth of a SME in the Swedish manufacturing industry

Course: Master thesis in strategic management

Author: Ahmed Ismail and Johan Karlsson

Tutors: Maya Hoveskog and Ingemar Wictor

Keywords: Barriers for growth, SMEs, manufacturing industry, entrepreneur, competition, management skill, finance, organization and strategy

Problem statement:What inhibits the growth of a SME in the manufacturing industry?

Purpose: The purpose of this study is to get a deeper understanding of what inhibits the growth of a SME in the Swedish manufacturing industry with focus on the entrepreneur, internal and external factors. Furthermore, we want to see what factors are the most significant regarding barriers for growth. The study will be conducted by interviews with three entrepreneurs and three persons from the management team.

Theoretical frame: The theoretical framework is based on three main concepts which are the entrepreneur, internal and external factor for growth of SMEs. The theoretical framework is summarized in a conceptual framework which shows how the theories are related.

Methodology: In order to fulfill the purpose and answer the research question, a qualitative method was used which was conducted through six interviews.

Findings and Conclusions: The conclusion of the study shows that all the concepts can be barriers for growth. However it was found that access to finance is more of a prerequisite than a barrier since capital is required to achieve growth in the manufacturing industry. The entrepreneurs can be barriers for growth since they are holding the required capital that is needed to achieve growth. The internal factors such as organization issues were found as the most significant barrier for growth of SMEs in the manufacturing industry. The study shows that the external factors can be barriers for growth but SMEs can adjust to be able to achieve growth.