Factors influencing the development and growth of micro and small firms

Abstract

Purpose. The main aim of the article is to present a preliminary recognition of the factors influencing the development and growth of micro and small enterprises owned and run by students of managerial and economic majors of studies in Poland.

Methodology. It was decided to specify 22 potential variables explaining the growth and development of enterprises. The data was collected using CAWI. Logistic regression was used to test the significance of factors and models of growth and development.

Findings. The results show that among students-owners of businesses that expand, there predominates the conviction that “good luck and favorable coincidence” has nothing to do with the growth. Moreover, “human resources and good relations with employees”, as well as “favorable location due to supply of workforce” are significant for the growth. Significant stimuli for growth are: risk propensity and public support for small business. In view of the development of the studied firms the following factors appear significant: untypical, innovative customer service and favorable external conditions (infrastructure, the ability to lease, build or purchase facilities).

Research limitations. The sample is not representative of the national population. It is necessary to conduct future research on a representative sample.

Practical implications. Factors connected with human resources, untypical, innovative customer service and favorable external conditions seem to play a crucial role in micro and small enterprises.

Social implications. The phenomenon of student entrepreneurship is socially important, because it fulfills the deficiency of work places, which came into existence after the collapse of many state-owned, large companies.

Originality. The paper presents authors point of view and makes contribution to the knowledge of the factors influencing the development and growth of micro and small enterprises owned and run by students in Poland.