Investigation on Unsuccessful Attempt of a Small Business Enterprise in Scaling-up/Strategic Diversification Plans

Most of the Small & Medium Business Enterprises (SMBE) are limited to their size and scale of operations by virtue of their ancillary type of role in the products. These industries are dependent on the main product promoted by the bigger industries. In order to diversify into new field or a set of products, they need to come out of their cocoon they are living in. Some of the companies do try this and succeed, but there are many which fail. The companies plan to expand, diversify and modify their product line but are not able to cope up with the change. Success will be achievable only when one balances between needs of the core business with the growing needs of the new business. It is also required to balance the conflicts between the core unit and the diversified business unit. This paper is based on my personal experiences and is comparative study of two SMBEs trying to spread their wings.