This case has been developed to highlight the challenge facing many small and medium enterprises (SMEs) all over the world. Many SMEs have successfully overcome the initial survival challenge. They have a stable base of loyal customers, are able to command attractive prices, and have built up a reputation for good quality. Yet they are unable to grow beyond a certain point. Why? What must they do to overcome the growth challenge? Swagruha Foods is a good example of an SME that has enjoyed considerable success, thanks to the dedication and commitment of the Chagarlamudi family, as well as to the changing socio-economic situation in India. Yet, there are several indications that it is unable to fully exploit its growth opportunities. The case discussion will help students/participants appreciate the key growth constraints in SMEs and how to overcome them. This case can be taught in an entrepreneurship course, to highlight the growth challenges faced by entrepreneurs who have successfully overcome the threat of survival. It can also be taught in courses focused on SME development.
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