In the context of globalization, the relative share of small enterprises is constantly increasing. The purpose of the study was to identify the factors determining the growth or stagnation and fall of small enterprises, the impact of entrepreneurs’ personality on business success, and possible ways to influence a company to improve its performance. A longitudinal study was conducted which involved monitoring of 68 small enterprises in the North-West region of the Russian Federation for more than 15 years. Direct observations were supported by interviews, which enabled us to compare the independent monitoring with comments by direct participants as well as to gain insight into the causes and consequences of certain situations.
The variance in entrepreneurs’ response to similar situations showed difference in their psychological traits and the effect it has on companies’ performance. At the same time, it demonstrated the impact of the fundamental laws of human psychology. The findings confirmed the key role of entrepreneurial personality for the growth of small businesses. Furthermore, for the first time in this field of research, the study identified the “Information Problem” as a major factor hindering the robust development of small high-growth firms managed by talented entrepreneurs and preventing their transition into the category of medium-sized businesses.
The proposed solution to the Information Problem implemented as a software tool allows entrepreneurs to cope with the challenges of growth. The implementation and use of the product does not require significant intellectual and financial resources; therefore it could become the “penicillin” for potential “gazelles” to overcome the crisis of transition.
Keywords
“Gazelles”, entrepreneurship, high-growth firms, small business.
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