Growth plans of small business in India: individual influences

Abstract

Small business plays an integral role in the Indian economy. It is the second largest employer, after agriculture. This study seeks to extend the findings of Kozan et al. (2006) and Gill et al. (2011) by examining the difficulty factors and predictors of growth plans of small business in India. Small business owners from Punjab area of India were surveyed in order to gather information. Subjects were asked about their beliefs and feelings regarding their personal difficulty factors and predictors of small business growth plans (SBGP). The overall results and the findings based on cities’ data analysis suggest that 1 family-business role conflict (FBRC) and age are not the predictors of growth plans of small business 2 the small business growth intensity (SBGI), sales level (past success), family, and location act as predictors of growth plans of small business in India. The findings show that SBGI and family are the only factors that act as predictors of SBGP, and lack of expertise, FBRC, sales level (past success), and age have no impact on the growth plans of small business in the rural areas of India. This study contributes to the literature on the factors that influence growth plans of small business. The findings may be useful for the Indian Government and small business management advisors.