In today’s Sweden there is great belief in entrepreneurship and the benefits it can bring to the country. The Swedish government has taken note of this growing enthusiasm and realized the contribution it can make to facilitate national growth. Successful efforts have been made in Sweden to support entrepreneurship and innovation, which has resulted in a relative ease for individuals to start their own businesses.

The number of companies started today is higher than ever and there are signs of a common faith in growth among new entrepreneurs. Unfortunately only a small fraction of these new businesses succeed in growing big. The harsh truth is that these companies will not contribute to national growth if they do not grow themselves. But what is preventing them from growing?

A number of studies have shown that both the environment and the entrepreneur himself are important factors when examining companies’ growth. That is because the environment affects the entrepreneur’s strategic decisions and forces him/her to act in certain ways. These decisions, in turn, affect the company, that can then demonstrategrowth (or not).

By examining five different factors that can influence the entrepreneur’s opportunity for growth, this study concludes that a number of political decisions and conditions can constitute as barriers for growth while a strong entrepreneurial orientation can help the entrepreneur to deal with negative factors in the environment.