Small and medium-size enterprises (SMEs) in India play an important role in
generating employment and creating economic wealth. Literature on small an
d medium-size enterprises suggests that these firms exhibit a different gro
wth orientation than do large firms. This article studies the automobile an
cillary firms in a common industrial cluster in India in order to develop a
framework for understanding the growth orientation of small firms. Eight f
actors (internal to the firm) which can distinguish the growth stages of sm
all firms are identified. The study also identifies a growth path specific
to the automobile ancillaries in India.