Abstract for: An Explanatory Framework for the Growth of SMEs A System Dynamic Approach
This study aims to develop an explanatory framework for the growth of small and medium enterprises (SMEs), which is a concept that has not been adequately developed in literature. Various models in literature were reviewed and critiqued -- with a special focus on the stages model; additionally, greater understanding of the nature of the growth of SMEs has been elicited from the mental models of domain experts. A case study of a fast-growing small to medium enterprise was conducted; and a full-fledged simulation model was crafted by integrating experts’ mental models with the current state of the art in scientific theories. The model was validated against various reference modes. Finally, a future research road-map based on various case studies was proposed to further enhance and corroborate our framework.