Entrepreneurship and the Growth of Firms: An Exploratory Study of the Dyestuffs Industry in Ahmedabad

Abstract

The paper attempts to understand the entrepreneur’s role in the growth of firms by comparing the performance of high and low growth (small-scale) firms in the dyestuffs industry in Ahmedabad. The paper observes that the factors usually associated with the making of entrepreneurial personality in India, such as family occupation, economic background and educational experience may facilitate the entrepreneur’s entry into business; they do not ensure growth. It is the General Enterprise Tendency which matters. The author finds a close association between the managerial capabilities of the entrepreneur and growth of firms, and argues that until the enterprise expands beyond a level, the owner-manager has to combine both entrepreneurial and managerial roles.