Acquisitive Growth of Small and Medium Enterprises (SMEs): A Review of Existing Literature
Acquisitive Growth of Small and Medium Enterprises (SMEs): A Review of Existing Literature

Author(s): Petra Mezulić Juric
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: SME acquisitions; Acquisitive growth; SME growth
Summary/Abstract: The literature on small business growth has predominantly emphasized organic growth. However, small and medium enterprises (SMEs) can also achieve growth through acquisitions, expanding their capabilities and market presence. This paper reviews the existing literature on SME acquisitive growth, focusing on motives, processes, and outcomes. In contrast to large firms, SMEs often have intertwined ownership and management roles, influencing their acquisition strategies. SME owners pursue acquisitions to create additional value. Entrepreneurs play a critical role in identifying targets, negotiating and integrating acquired companies. The smaller scale of SME acquisitions allows for flexible integration processes tailored to specific needs and cultures. Post-acquisition, SMEs exhibit unique value creation mechanisms, including accelerated organic growth and new organizational knowledge. Overall, this paper highlights the unique characteristics of SME growth through acquisition and contributes to a deeper understanding of how small and medium enterprises can effectively use acquisitions as a growth strategy.

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