Children are not "Little grown-ups": Small business needs its own organizational theory

Small business organizations need to be viewed in a way that is relevant to small business, rather than considered in terms of large organization theory. Small businesses have characteristics that are unique to that type of organization. The personal characteristics of the owners of the small business may influence the development of the business. Existing financial theory does not readily explain the small business owner-manager's behavior. These owner-managers are often willing to settle for less monetary reward in return for satisfaction of ownership. New theory should concentrate on the identification of organizational structure, determination of the relationship of the type of owner, and the impact of size on complexity.