Business Service Firms and Market Share

Traditional thinking suggests that profitability is linearly dependent upon market share, an assumption not carefully tested/or services. This assumption is examined in this study for business services in light of the apparent opportunity in this sector for entrepreneurs. Cross-sectional data from secondary sources suggest that a V-shaped relationship may be a better description of variation up to nine times average firm size in this sector. This interpretation of results is important to the strategy of small business managers became it relates to the plans they might make in growing their businesses. Normative recommendations promise improvements/or firms entering the critical intermediate share stage. These include focusing on revenue per employee as an objective, developing professional management assistance, formal projectfication of work (thus utilizing "virtual organizations'), and paying a11ention to organization while growing