Strategic Awareness and Growth Strategies in Small Enterprises

This paper is based on an empirical study, founded on the case-study method, carried out on 49 SMEs localized in the Pesaro-Urbino province seeking to analyze the entrepreneurs’ perception about their own competitive position and the main actual or future strategies defined in order to defend or strengthen it. Starting from theoretical studies and empirical evidences, the paper focuses on three aspects. Firts, it analyzes the strategic awareness degree of local entrepreneurs about exogenous threats and opportunities and endogenous strengths and weaknesses. Local SMEs have different degree of actual (“where the company is”) and perspective (“where the company might go”) awareness. Entrepreneurs are often unable to identify the resources and capabilities where their competitive advantage is based on and sometimes they undervalue their strengths being more aware of their weaknesses. Local entrepreneurs are also lacking in analyzing and recognising threats, opportunities and successful factors of the competitive environment where they live. Then, the paper examines the actual or future strategic policies planned or predicted by entrepreneurs to defend or strengthen their competitive position, focusing on cooperation and internationalization strategies. The companies studied have several alternatives of qualitative and quantitative growth to an horizon. The paper focuses on the main difficulties which hinder SMEs in achieving their strategic plans, above all on international markets. Finally, the paper discusses some implications for local institutions who seek to assist the competitive growth of local SMEs. Implications are draw in terms of information, training, relationship management, services offering and finance.