Managerial Barriers to Growth in Sweden 1

This paper focuses on the situation when a firm moves from being an entrepreneuri ally managed firm to a professionally managed firm. A small firm may have a very simple structure, but when the number of employees grow, so will the need to differentiate and specialise the way work is done. During that transformation, when the organisation and the management principals are changed, leading to a temporary slack of control of the firm, a decrease of economic performance is hypothesised.