Management Development Practices in Family and Non-family Small and Medium-sized Enterprises with Business Growth

Abstract

This study aims to examine how management development practices in family and non-family small and medium-sized enterprises (SMEs) change with business growth. The data employed to address the research question are drawn from the Business Longitudinal Survey (BLS). There is a statistically significant decline across the SME growth development pathways in the proportion of SMEs which are family-owned. There are also significant positive relationships between working owners and business growth, with an increase in other full-time managers across the growth development pathways. In contrast, family SMEs employ significantly more new managers than moderate and low growth firms, and moderate growth nonfamily SMEs employed significantly more managers than low growth enterprises. This transition towards more professional management appears to begin early in the growth process, as evidenced by a greater significant increase between low and moderate than moderate growth firms. In this context, a strategic approach to manage-ment development is characterized by an increasing degree of commitment of resources to the management development initiatives.