Causality of small firm growth: Towards a model of relations among challenges SMEs face while growing, solutions to them and aspects of the context of the growth

Abstract: Even though researchers have investigated the growth of small and medium-sized enterprises (SMEs) for decades, we know little about the challenges they face due to their growth, what are the aspects of the context in which they emerge, and how they are addressed. Current literature provides even less knowledge about the causality of SME growth. This study, in the form of an explorative single case study of a high-growing company in e-commerce, fills that void. The analysis led to the identification of specific challenges, solutions to them, and aspects of the context in which they emerged. Moreover, the investigation resulted in models of their interconnectedness at multiple levels of abstraction. Finally, various types of relations were identified. These novel findings shed light on the causality and complexity of SMEs' growth process. They describe specific growth challenges, solutions to them, and aspects of their context. More importantly, the results provide tools for scholars to better understand and gather knowledge about SME growth. For entrepreneurs and managers, these findings offer insights for decision-making and aid in managing their companies through growth.