Title: Growth constraints and management consulting: the case of SMEs in peripheral regions

Authors: Yanay Farja; Eli Gimmon; Zeev Greenberg

Addresses: Department of Economics and Management, Tel-Hai College, Tel-Hai 12208, Israel ' Department of Economics and Management, Tel-Hai College, Tel-Hai 12208, Israel ' Department of Human Services, Tel-Hai College, Tel-Hai 12208, Israel; University of Haifa, Israel

Abstract: This study explores the factors that cause differences in employment growth between young SMEs in core urban and peripheral regions and whether the uneven distribution of resources requires peripheral firms to draw on management consulting to achieve growth. We applied a mixed methods approach that included a quantitative study of 155 Israeli new ventures and ten in-depth interviews with experts from academia and experienced practitioners. Regression analysis results show that management consulting was beneficial for SMEs growth only for those located in peripheral regions. SMEs funded by money from family members grew less than the other firms. The economic development of peripheral areas needs to be carried out by providing potential business owners with two resources that are scarcer in these areas: funding and knowledge.

Keywords: peripheral development; firm growth; management consulting; early-stage financing; SMEs.

DOI: 10.1504/IJESB.2018.094276

International Journal of Entrepreneurship and Small Business, 2018 Vol.35 No.1, pp.126 - 141

Received: 12 Sep 2016
Accepted: 19 Nov 2016
Published online: 26 Aug 2018 *

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