The Department for Business Innovation and Skills carried out a report last year into the sociology of enterprise, to figure out why many small businesses never grow or at best 'achieve modest growth'.
The research may be taken into account in the way policy is decided on for small businesses, and found businesses inclined toward growth are generally owned by well educated males from 'higher status' family backgrounds.
'Businesses owners are people and just as everyone else in society, their attitudes or dispositions, aspirations and behaviours are shaped by their experiences and an innate sense of where they do and do not belong,' the research said.
The report was led by the Enterprise Research Centre and interviewed 100 business owners in depth about their attitudes toward growth and how it affects business performance.
The key findings were that there were three dispositions among business owners: growth-inclined, growth-ambivalent and growth-resistant.
Out of the 100 surveyed, the research found 48 were growth inclined, 28 resistant and 24 ambivalent - and that the disposition of a business can change over time. We've summarised some of the interesting points about each category below.
The research said they're more likely to come from a higher status family background, have been to university or in a management role, are likely to be younger and have a more 'international' background..
They demonstrated positive mindsets and behaviours relating to strategy development, accessing finance, recruiting and developing employees, networking, forging partnerships and taking advantage of technology.
Some businesses in this sector hadn't achieved recent growth despite their best efforts - such as a strategic and planned approach to growth.
Businesses of growth-inclined owners tend to perform better than others. In addition, these kinds of owners owners reported mean growth per business of 52%, compared to 40% for the growth-ambivalent.
Research said more men were growth inclined than women, who were found more likely to be growth-resistant. And those geared toward growth tended to be under 50 and have had supportive families.
In addition, almost nine-in-10 growth-inclined owners have academic qualifications.
They were also more likely to discuss strategic approaches to raising finance, what they want from mentors and recruitment. They're also generally more positive about the benefits of using technology and more confident in their own abilities to do so.
For the growth inclined, they were more likely to be interested in setting up a business instead of being 'forced' into it for example via redundancy.
These business owners sit between the two other groups and aren't actively seeking growth or proactively seek to identify opportunities.
They tend to come from a lower status family background, lack successful business role models, be older and not have attended university.
Growth-resistant business owners tended not to suggest that their families were a source of support for them to enter business.
Where there had been exposure to family entrepreneurship at an early stage of life among growth-resistant owners, it tended to be characterised as small-scale self-employment - a 'way of life' rather than a successful, growing business.
Growth-resistant owners are more likely to run lifestyle businesses and more likely to be female. They're also less likely to use any external finance and were far more resistant to using debt than the growth-inclined owners.
The growth-resistant owners were more hesitant than the growth-inclined to use technology and are more likely to reject support, or not give precise reasons for their negative views about a particular support scheme.
Do you recognise yourself in any of the above categories? Comment below.
The research may be taken into account in the way policy is decided on for small businesses, and found businesses inclined toward growth are generally owned by well educated males from 'higher status' family backgrounds.
'Businesses owners are people and just as everyone else in society, their attitudes or dispositions, aspirations and behaviours are shaped by their experiences and an innate sense of where they do and do not belong,' the research said.
The report was led by the Enterprise Research Centre and interviewed 100 business owners in depth about their attitudes toward growth and how it affects business performance.
The key findings were that there were three dispositions among business owners: growth-inclined, growth-ambivalent and growth-resistant.
Out of the 100 surveyed, the research found 48 were growth inclined, 28 resistant and 24 ambivalent - and that the disposition of a business can change over time. We've summarised some of the interesting points about each category below.
Growth inclined
These were positively disposed to business growth and seemed to have a strong vision of growth for their businesses and commitment to achieving this.The research said they're more likely to come from a higher status family background, have been to university or in a management role, are likely to be younger and have a more 'international' background..
They demonstrated positive mindsets and behaviours relating to strategy development, accessing finance, recruiting and developing employees, networking, forging partnerships and taking advantage of technology.
Some businesses in this sector hadn't achieved recent growth despite their best efforts - such as a strategic and planned approach to growth.
Businesses of growth-inclined owners tend to perform better than others. In addition, these kinds of owners owners reported mean growth per business of 52%, compared to 40% for the growth-ambivalent.
Research said more men were growth inclined than women, who were found more likely to be growth-resistant. And those geared toward growth tended to be under 50 and have had supportive families.
In addition, almost nine-in-10 growth-inclined owners have academic qualifications.
They were also more likely to discuss strategic approaches to raising finance, what they want from mentors and recruitment. They're also generally more positive about the benefits of using technology and more confident in their own abilities to do so.
For the growth inclined, they were more likely to be interested in setting up a business instead of being 'forced' into it for example via redundancy.
Growth ambivalent
This group was somewhat inclined toward business growth, but were less likely to exhibit positive mindsets and behaviours and instead had an opportunistic or ad hoc approach to growth, lacking a comprehensive exploration or exploitation of the full range of possibilities open to them.These business owners sit between the two other groups and aren't actively seeking growth or proactively seek to identify opportunities.
Growth resistant
These businesses aren't really disposed towards business growth, didn't demonstrate a strong vision of growth for their business and didn't want to employ staff or take on financial commitments to support future growth.They tend to come from a lower status family background, lack successful business role models, be older and not have attended university.
Growth-resistant business owners tended not to suggest that their families were a source of support for them to enter business.
Where there had been exposure to family entrepreneurship at an early stage of life among growth-resistant owners, it tended to be characterised as small-scale self-employment - a 'way of life' rather than a successful, growing business.
Growth-resistant owners are more likely to run lifestyle businesses and more likely to be female. They're also less likely to use any external finance and were far more resistant to using debt than the growth-inclined owners.
The growth-resistant owners were more hesitant than the growth-inclined to use technology and are more likely to reject support, or not give precise reasons for their negative views about a particular support scheme.
Do you recognise yourself in any of the above categories? Comment below.
