The stage model of firm development: a conceptualization of SME growth

A conceptual model for researching SME growth through a life cycle perspective is discussed in this paper. A gap in the literature regarding research in SME growth is addressed. This gap can be identified based on the firm life cycle theory. Researchers have concentrated on formulating and validating a uniform life cycle theory of firms, and neglected the relation between the features of the different development and their position in the life-cycle models. (Perényi, Selvarajah and Muthaly 2007) In this paper, the authors outline an alternative framework to research the firm life cycle theory focusing on firm growth.