Abstract
The UK chemical distribution industry, a well-established, highly fragmented, subject to strong consolidation and significant part of the chemical industry, is a major contributor to the UK economy and employment. The ever increasing regulatory compliance requirements pose a significant challenge to all companies in general but more so to SMEs which have a strong presence in this industry. Even though there has been considerable research in the area of small business growth, best practices for SMEs in the chemical distribution industry are scarce. This is one of the few research papers that address this gap in knowledge in a case study context in the specific industry, arguing that a mix of inorganic and organic growth is the best way to achieve growth. Findings suggest that the strategy depends on the vision of the owner/manager, strategies in place, access to human resources and finance, past experiences, industry characteristics and company structure. Despite the methodological limitations of this study, this can be used as the basis for future research and to inform key stakeholders and policy makers.
Highlights
Small and medium-sized enterprises (SMEs) play a crucial role in the economy, “driving economic growth by stimulating innovation, acting as a competitive spur to existing businesses and making a disproportionately large contribution to job creation” (BIS, 2014)
This research paper has shown that SMEs play an essential role in the overall economy and especially in the UK chemical distribution industry (CIA, 2015)
The current growth strategy is a mix of organic and inorganic growth, which is typical among SMEs in the chemical distribution industry
Summary
Small and medium-sized enterprises (SMEs) play a crucial role in the economy, “driving economic growth by stimulating innovation, acting as a competitive spur to existing businesses and making a disproportionately large contribution to job creation” (BIS, 2014). In means of turnover and/or profit, is imperative for small business survival in such a fierce business environment and only the ones these are able to create a sustainable competitive advantage in their industry will be successful in the long term (Lampadarios, 2016a and c; Papulova et al, 2006). An industry where small businesses have a strong presence is the European and especially the UK chemical distribution (Districonsult, 2013; European Association of Chemical Distributors [FECC], 2013). Very little is known about SMEs in the specific industry, their modus operandi and subsequent growth strategies (Chemical Business Association [CBA], 2015; FECC, 2015). Due to the wide variety of functions performed by these companies and confusion with other types of trading in the industry, there is still no universally agreed definition of a chemical distributor (Chemagility, 2012)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
