This turning Numberss of little concerns is an declarative merely of a quantitative step but this is non merely plenty to show the critical part of little concern to economic growing.

Qualitative factors such as features and motive of concern proprietors are besides paramount in understanding the outgrowth of little concern and their undeniable endurance. Furthermore, the logic behind such distribution of ownership, the ground why concern proprietors commence in concern and why they choose to run a little concern are so analysed.Brodribb 1967 ( cited in Peacock 2004 ) provided features and motives of concern proprietors based on five classs - `` societal and economic background, motive in taking their calling, present aims, direction patterns and growing orientation '' .The societal and economic background of little concern proprietors suggest that most of them had business-experience for a considerable period, they are besides educated although merely few have completed a university or college grades, and most of all they are able to pull off important houses growing.

Motivation in taking a calling includes a desire to being independent and to hold merely a satisfactory income in order to keep a good life. Present aims can be seen as more of personal enjoyment of being able to command the house, being the foreman and being able to carry through what needs to be done. Management patterns of little concern proprietors can non be viewed as a `` good direction patterns '' , they frequently have strong findings but unable to untangle themselves into important inside informations, which mean that they preferred to be straight involved in every facet of the concern. Growth and endurances are frequently the consequence of uninterrupted activity and consciousness. Business proprietors besides differ when it comes to growing orientation.

There are those who like their houses to turn and those who do n't. Those who are growth-oriented aimed to maximize net incomes and are ready to see other factors such as utilizing external financess or using more people and even giving more clip to the concern. On the other manus, non-growth concern operators are merely happy to remain and bask what they are presently gaining ( Brodribb 19767, cited in Peacock 2004 ) .In add-on, Stanworth and Curran, 1986 ( cited in Peacock 2004 ) besides proposed three latent societal individualities of little concern owners-managers. First is the artisan individuality which is more individualized in footings of merchandise or service and in all aspects of concern. This individuality can be seen as quality concern instead than measure, that is to state, it does non take to gain a luck but instead supply a high quality merchandise or service and keep a centralized control of the house.

Second is the authoritative enterpriser individuality which aims to maximize net incomes for endurance and growing. Last is the director individuality which aims to accomplish a quality direction, this individuality has a less direct control of operation but instead focal point on the direction facet of the concern as it grows.Basically, these features and motives can take a concern proprietor to get down in concern. Economic background such as concern experience for a important period of clip can act upon an single determination to open up its ain concern and makes usage of those past experiences. A desire for independence which is sometimes due to disappointment in employment is a strong motivation factor that may force an person to get down a concern of their ain instead than work for others. Personal aims such as being a foreman and being able to exert control of their ain concern can besides drives a individual into concern.

Most of them are consistent with the `` major ground and benefits for running a little concern '' . Major grounds include `` independency, fiscal wages, occupation satisfaction, challenge, employment and others '' . Benefits include being a foreman, holding control of their life, clip flexibleness, accomplishment and holding a definite occupation ( Peacock 2004 ) .Similarly, concern proprietors ' motives, features and individualities can besides take to the formation of different concern constructions.

Orientation growing for illustration - concern proprietors who are growth-oriented are likely to organize partnership with others or integrate as companies, the same with the classical and director individuality. Conversely, non-growth little concern proprietors are less likely to alter their current concern constructions and are merely contented to run as little concern, so as with the artisan individuality.Having known all these, it is still amazing that Australian economic system is now driven largely by little concerns. If concern proprietors are so capable of doing the house grow so why bulk are still runing a little concern, why non purpose for large? It is hence necessary to see some grounds why concern proprietors prefer to run as a little concern. Possible grounds such as the impact of fiscal directions, coaction of determination doing with others, ethical mentality, little concern orientation instead than entrepreneurial orientation, competition and efficiency are besides deserving cognizing.

Fiscal investing chances are limited in little concern and more frequently than non there are besides limited resources. It is managed largely by one person so the challenges of growing or enlargement are necessarily more hard. There is besides deficiency of variegation both people and fiscal resources because proprietors themselves are involved in the operation and their fiscal resources are normally unavailable for investing as they are used in concern activities ( LeCornu et al. 1996 ) .Collaboration of determination doing with others which is besides known as `` networking '' is besides an of import factor to achieve growing and although some Australian SME proprietors adopted networking, 73 % rejected this construct, Holmes & A ; Smith 1997 ( cited in Brunetto & A ; Farr-Wharton 2007 ) .

Because one of the features of little concern proprietors is personal in nature such as holding the entire control of the house, Brodribb 1967 ( cited in Peacock 2004 ) , it is doubtless that they are loath to collaboration specifically in determination devising.Ethical mentality in this context refers to the manner a concern proprietor resolves an issue in the mode they conduct their concern. It has been found out that little concern proprietor are idealistic and extremely committed and are greatly concerned in covering with others. Ethical behavior has besides found to be more of import and little concern proprietors holding few employees can easy widen this to clients and to the populace ( Dawson et al. 2002 ) .

This indicate that if growing will ensue to a more complex issue that will adversely impact the manner a concern proprietor behavior its concern, so it is improbable that growing will be of involvement.Majority of little concern proprietors are likely to hold a `` little concern orientation '' , instead than `` entrepreneurial orientation '' Stewart and Roth 2001 ; Stewart et al. 1998 ( cited in Highbeam Business ) . They can both execute good in the concern nevertheless these two constructs differ chiefly in footings of ends and attitudes. As little concern proprietors are more emotionally attached to the concern and their ends are non simply maximizing net incomes ( Peacock 2004 ) , hence growing is non a feasible option.

Competition and efficiency in little concern are consistent with the artisan individuality of concern proprietors. It is more individualized, control is more direct, communicating is prompt and runing cost is cheaper. This leads little concern to be able to vie with the big houses ( Peacock 2004 ) . With the being of speedy and simple flow of operation in little concern which is non usually present in most big houses, concern proprietors with artisan individuality are less likely to be attracted to the whole thought of growing.Jointly, all of the above propositions are straight relevant to the world-wide acknowledgment of little concern as a important subscriber to economic development. Quantitative grounds presented by ABS has been complemented with qualitative information which fortifies the ground to the distribution of concern ownership constructions.

Features and motives of little concern proprietors were besides discussed and analysed further which established grounds as to why concern proprietors commence in concern. In drumhead, little concern proprietors have different individualisms and thrusts which can be both personal and psychological and from these differences, it can be determined that the being of different concern constructions is merely a affair of penchant between concern proprietors ; and the ground for get downing in concern and make up one's minding for growing depends chiefly on intent and personal position.