Growth Strategy in Entrepreneur Managed Small Organizations: A Study in Auto Component Manufacturing Organizations in Central India

Small business organizations offer cost effective and customized products to niche markets and provide employment to local talents; many large organizations source products from them. Entrepreneurs of small businesses develop both strategic and tactical skills and abilities to face market related uncertainties. Growth is seen differently by entrepreneurs even if they operate in similar product markets and industries. In order to develop theoretical framework(s) on growth strategy of entrepreneur managed small organizations, an empirical study was undertaken at an auto component manufacturing cluster in Central India. Two major patterns were found. In ‘focused customer based growth strategy’ entrepreneurs focus on single customer and hence customer relations, low cost automation, and agility to match the demand uncertainty are the important strategic actions. In ‘multiple opportunity based growth strategy’ entrepreneurs choose data based approach to search for new opportunities at various locations for value addition and cost efficiency with technology support.