Exploring the Characteristics of Prosperous SMEs in the Caribbean

Abstract

Despite the extensive literature on small business growth and performance, relatively little is known on the features of firms that have been prosperous for a long period of time. Adopting Storey’s determinants of growth framework, this study explores the characteristics of the entrepreneur, the firm, and the firm’s strategy contributing to the prosperity of small firms in the Caribbean. Using multiple case studies from across the region, this study reveals that SME prosperity in the Caribbean seems to depend on combining certain characteristics namely, the entrepreneur’s strategic leadership, networks, and intimate knowledge of products and business operations, and the firm’s strategy of branding and market diversification. The findings show that unlike the results from previous studies in large and developed countries, it is a mix of these characteristics that determines SME prosperity. Research and policy implications of these findings are discussed.