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This paper contains a review of alternative theories which have been developed in order to explain growth and change in the small manufacturing firm. Models of small-firm growth derived within the industrial economics literature are evaluated together with stage models of growth and stochastic models. Social and psychological perspectives on growth are reviewed and the spatial dimension is also considered. We argue that most previous theories of small-firm growth place too little emphasis upon the difficulties which small owner-managed firms have in meeting the competitive requirements of the marketplace.
O'Farrell et al. (Sat,) studied this question.
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