Strategies for growth and the barriers faced by new technology‐based SMEs

Abstract

The relevance and importance of the high technology small firm sector to economies has been discussed by a number of authors and new technology‐based firms (NTBFs) have been viewed as having a very important role to play in job creation and as the seedbed of emerging industries. This paper illustrates the findings from a study involving 20 NTBFs based in the Aberdeen area of Scotland where small firms account for a large proportion of exports from the area. The methodology employed involved in‐depth interviews with owners, directors or senior managers. The sample was comprised of engineering companies, software developers, analytical services, instrumentation specialists and a biotech company. the strategic process was explored within each organisation and the difficulties that these NTBFs have in formulating strategies were identified. Questions were asked about relationships with stakeholders and the impacts of support mechanisms for the organisation in practice. Barriers to growth and development were identified and a model of the most important strategic issues was proposed which NTBFs could relate to. Key policy issues which the NTBFs consider important for their strategic growth included innovation, internationalisation, human resources and collaboration. Policy implications at the organisational, local and national levels are highlighted.