Comparable yet distinct: a systematic review of social and small and medium-sized enterprises growth trajectories

Abstract

Purpose This study aims to expand the concept of business growth by incorporating sustainability demands, particularly in the context of the Anthropocene era. It explores the growth trajectories of social enterprises (SEs) and small and medium-sized enterprises (SMEs), examining how SEs integrate social and environmental objectives into their growth process. Through a systematic literature review (SLR), this study compares these approaches with traditional SME growth paradigms, highlighting the need for a holistic understanding of business growth that addresses contemporary socioenvironmental challenges. Design/methodology/approach A qualitative SLR was conducted, using a structured search algorithm to identify and evaluate research on growth and scaling in SMEs and SEs. The search of the Web of Science database with specific growth-related keywords yielded 5,362 articles, which were narrowed to 194 after filtering by journal relevance. Content analysis, guided by an inductively developed codebook, examined growth definitions, operationalizations, and methodologies. This paper focused on key growth dimensions (economic, social and environmental) and identified whether growth was addressed as an outcome or process, along with its enablers and barriers. Findings While there are areas of intersection between the literatures, the findings reveal that traditional SME growth frameworks do not entirely align with SEs growth conception and management. Furthermore, SE’s growth barriers and facilitators, as well as growth trajectories more broadly, emerge as distinct from those of traditional SMEs. The results distill insights from SE growth paths that can be valuable for traditional SME managers, particularly in terms of managing stakeholders and the institutional environment. Social entrepreneurs commonly use strategies for reshaping business norms, influencing consumer culture and raising social issues awareness, leveraging the values of stakeholders to secure essential support. Originality/value As SMEs confront escalating pressure to align with the sustainable development agenda, the findings underscore the critical significance of drawing insights from the burgeoning SE growth literature. This suggests that traditional SME growth literature stands to gain invaluable insights from recent SE research, fostering a more nuanced comprehension of sustainability-centric SME growth trajectories.

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