The strategic orientation of owner‐managers of small ventures

Abstract This explorative research paper considers the strategic development objectives of small owner‐managed ventures in order to have an insight into how to systematically categorise the heterogeneous owner‐managed small business economy. It commences with a review of the literature and other studies pertinent to the strategic objectives of small business owner‐ managers from which the general research hypothesis is established; small firms have a variant form of strategic orientation owing to a plethora of internal (behavioural) and external market economic factors. This is followed by the research methodology and statistical analysis of a database which incorporates the views of 922 small firm owner‐managers on strategic objectives. The empirical evidence identifies four generic clusters of owner‐managers namely: growth stars, exiteers, survivors, and controllers. In order to throw more light on the profile of the variant clusters of owner‐managed small firms, the paper briefly examines the inter‐relationship of small business strategic orientation with structure (e.g. size, age, sectoral distribution), behaviour (e.g. legal form, family business control) and performance (e.g. growth, profitability). In conclusion, some tentative policy implications from the perspective of management, service providers (financiers and advisors) and policy makers, are discussed.