SMALL and medium-sized firms should make sure they grow at a steady pace, according to the Association of Chartered Certified Accountants (ACCA).

The organisation warns that rapid expansion can mean sudden death for businesses in this sector.

Victoria Jonson, from ACCA's small business unit, said many companies were exposing themselves to unnecessary risk.

"They do not take stock of their current market positions or assess their key revenue areas," she said.

"Small businesses find as they grow, demand for their services becomes far greater than their ability to deliver."

She said nearly 50 per cent of small businesses failed to reach their second birthday and it was certain unplanned growth was a contributory factor.

"Growth needs to be gradual and controlled to achieve success," she said.

"Business owners should have adequate staffing to ensure product quality is maintained, as over-stretching resources can lead to failure and bankruptcy."

Professional advice about managing growth successfully can be obtained from chartered certified accountants.