Abstract
This study examines the barriers to the growth of small business firms in India. The owners of small business firms from Punjab area of India were surveyed to find out their beliefs and feelings regarding factors that affect the growth of their firms. Findings suggest that lack of financing, market challenges, regulatory issues, and infrastructure are perceived as factors that negatively affect small business growth in India. The results show that when sales level (‘past success’) is held constant, small business growth in India is negatively associated with lack of financing, market challenges, and regulatory issues. The findings also show that when family is held constant, small business growth is negatively associated with lack of financing and regulatory issues. This study contributes to the literature on the barriers to the growth of small business firms. The findings may be useful for the Indian governments, investors, stakeholders, and small business management advisors.
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