Small businesses play an important role in the economic development of India. This study seeks to extend the findings of Kozan et al. (2006) and Gill et al. (2010) regarding the factors that affect the propensity of small business owners to grow and expand small businesses. Indian small business owners were surveyed to find their perceptions of various factors that affect negatively their propensity to grow and expand small businesses in India. This study utilized survey research (a non-experimental field study design). The findings suggest that perceptions of lack of expertise and family-business role conflict negatively affect the propensity to grow and expand small businesses in India. The findings may be useful for the small business management advisors.

This study examines the factors that affect Indian propensity to grow and expand small businesses in India. The current population of India is around 1.21 billion people (Indiaonline, 2011) and a majority of the Indians rely on self-employment. Thus, the small business community is a vital source of job creation in India. Small business industry accounts for (1) approximately 95% of the industrial units; and (2) contributes almost 40% of the gross industrial value added and 45% of the total exports from India (iBlogger, 2010).

The literature on entrepreneurship has acknowledged the influence of the entrepreneur’s motives and traits, as well as the environment in which his or her firm operates. For example, Tropman and Morningstar (1989) proposed four key elements, the first two of which dealt with the characteristics and competencies of the entrepreneur and the last two with the specific and the general environment of the firm.

Previous authors have examined factors that affect the propensity of business owners to grow and expand their businesses in (1) Turkey (Kozan et al., 2006); and (2) Canada (Gill et al., 2010). This study seeks to extend the findings of Kozan et al. and Gill et al. by testing the relationships between lack of expertise, family-business role conflict, and small business growth intensity. There are many environmental factors such as market competition, entry barriers, government policy, lack of financing, taxes (Gill et al., 2010), etc. that may affect Indian propensity to grow and expand small businesses in India. To narrow down the scope, this study concentrates only on individual difficulty factors that affect Indian propensity to grow and expand small businesses in India. Knowledge of the relative role of personal factors in bringing about expansion and growth is expected to provide insights for government policy and small business management advisors.

This study contributes to the literature on the factors that affect Indian propensity to grow and expand small businesses. The very little research on the individual difficulty factors that affect the propensity of small business owners to grow and expand small businesses has been reported.

Entrepreneurship Development Journal, Microenterprises in India, Micro, Financial Services, Small and Medium Enterprise, Indian Economy, Microentrepreneurial Ventures, Social Development, Women Entrepreneurs, Sociocultural Traits, Indian Culture, Performance Measurement, Organizational Traits.