The aim of the paper is the presentation of theoretical foundations and the structure of original, 8-stage statics and dynamics model in the small business life cycle. Based on theoretical considerations, two hypotheses concerning the impact of dynamic and static nature of the life-cycle stages on selected determinants and effects of SMEs’ development were formulated. The hypotheses were verified based on the results of the survey conducted on a sample of 1,741 SMEs from 22 countries of the European Union. The results indicate that companies in the dynamic life-cycle stages are run by more enterprising owners, operate in more promising markets with a higher potential and make greater use of market niches thus limiting the level of competition. At the same time, such companies are characterised by higher levels of flexibility and involvement in innovative activities, which translates into obtaining a significantly higher level of business performance, in the area of quantitative as well as qualitative results.
Aragón-Sánchez, A., & Sánchez-Marín, G. (2005). Strategic orientation, management characteristics, and performance: a study of Spanish SMEs. Journal of Small Business Management, 43(3), 287-308. doi: 10.1111/ j.1540-627X.2005.00138.x)| false
Edwards, T., Delbridge, R., & Munday, M. (2005). Understanding innovation in small and medium-sized enterprises: a process manifest. Technovation, 25(10), 1119-1127. doi: 10.1016/j.technovation.2004.04.005)| false
Granlund, M., & Taipaleenm, J. (2005). Management control and controllership in new economy firms - a life cycle perspective. Management Accounting Research, 16(1), 21-57. doi: 10.1016/j.mar.2004.09.003)| false
Koh, L., Demirbag, M., Bayraktar, E., Tatoglu, E., & Zaim, S. (2007). The impact of supply chain management practices on performance of SMEs. Industrial Management & Data Systems, 107(1), 103-124. doi: 10.1108/02635570710719089)| false
Kushnir K. Mirmulstein M. L. & Ramalho R. (2010). Micro small and medium enterprises around the world: how many are there and what affects the count? Washington USA: MSME Country Indicators The World Bank & International Finance Corporation.
Lester D. L. Parnell J. A. & Carraher S. (2003). Organizational life cycle: A five-stage empirical scale. International Journal of Organizational Analysis 11(4) 339-354. doi:
Lester, D. L., Parnell, J. A., & Carraher, S. (2003). Organizational life cycle: A five-stage empirical scale. International Journal of Organizational Analysis, 11(4), 339-354. doi: 10.1108/eb028979)| false
Levie, J. D., & Lichtenstein, B. B. (2010). A terminal assessment of stages theory: Introducing a dynamic states approach to entrepreneurship. Entrepreneurship Theory and Practice, 34(2), 317-350. doi: 10.1111/j.1540-6520.2010.00377.x)| false
Masurel, E., & Van Montfort, K. (2006). Life cycle characteristics of small professional service firms. Journal of Small Business Management, 44(3), 461-473. doi: 10.1111/j.1540-627X.2006.00182.x)| false
Phelps, R., Adams, R., & Bessant, J. (2007). Life cycles of growing organizations: A review with implications for knowledge and learning. International Journal of Management Reviews, 9(1), 1-30. doi: 10.1111/j.1468-2370.2007.00200.x)| false
Tam, S., & Gray, D. E. (2016). What can we learn from the organizational life cycle theory? A conceptualization for the practice of workplace learning. Journal of Management Research, 8(2), 18-29. doi: 10.5296/jmr. v8i2.9093)| false
Tendai C. (2013). Networks and performance of small and medium enterprises (SMEs) in different stages of the life cycle: A case study of a small business in the Netherlands. Journal of Communication 4(2) 89-94.
The World Bank. (2016). Indicators: Agriculture & Rural Development. The World Bank Data. Retrieved from: http://data.worldbank.org/indicator
Verdú-Jover A. J. Lloréns-Montes F. J. & García-Morales V. J. (2006). Environment-Flexibility coalignment and performance: an analysis in large versus small firms. Journal of Small Business Management 44(3) 334-349. doi:
Verdú-Jover, A. J., Lloréns-Montes, F. J., & García-Morales, V. J. (2006). Environment-Flexibility coalignment and performance: an analysis in large versus small firms. Journal of Small Business Management, 44(3), 334-349. doi: 10.1111/j.1540-627X.2006.00175.x)| false