bluuebunny/crossref_metadata_2025 huggingface dataset:
Client perceived value within ISO 9000 consultancy projects
Authors: Murphy Ray
Published: April 2004

For many small and medium‐sized enterprises (SMEs), quality systems, and ISO 9000 (BS EN, ISO 9000‐1, 1994) in particular, are a fact of life. Quality systems are seen as a necessary qualification for trading in certain markets. This can encourage businesses to think of quality only in terms of the cheapest way to obtain a certificate, thereby failing to appreciate the organisational benefits which could be obtained if more resources were applied to the development of effective quality systems. The use of quality consultants is widespread as a means of implementing ISO 9000. The selection and use of consultants can have a major influence on the commercial impact of quality systems developed through their work. Clients do not always appreciate differences between consultants, who all promise registration. As a consequence, a client often places its trust in the cheapest consultant, the first one to come along, or a friend. This paper, which is based on a survey of SMEs registered to ISO 9000, and will be presented at the Small Business and Enterprise Development Conference, 22nd and 23rd March, 1999, explores clients’ perceptions of value through the development of a model of client‐consultant relationships. It is argued that both clients and consultants need to have awareness of these perceptions at different project stages in order to realise the benefits of consultancy relationships. Clients’ perceptions of value are identified in both the experience of the consultancy relationships as well as the outputs. By viewing client‐consultant relationship development as a process, key activities within a project can be investigated, such as initial contracting and ultimate project outputs. The paper concludes that ISO 9000 can act as a bureaucratic constraint on improvement activities, but can also provide an opportunity to develop structures and processes that help to achieve improvements in a controlled manner. It is argued that the achievement of third‐party registration is largely irrelevant to the effectiveness of a quality system in bringing about improvements, although the prospect of registration is often a necessary driver towards instigating a system. It is shown that quality consultancy relationships are perceived by clients as having widely differing outcomes. These can be both favourable and unfavourable, whilst still meeting the objective of registration.
Evidence on the tax and investment affairs of small firms
Authors: Poutziouris Panikkos , Chittenden Francis , Michaelas Nicos
Published: April 2004

This paper documents the findings from an extensive postal survey conducted in 1997‐98, which looks at the tax affairs of small firms, both incorporated and unincorporated. Tax planning practices of small firms in the UK, and the implications of these practices on working capital and investment in these businesses, are considered. The results indicate that tax planning in most small firms is not very sophisticated and this has an effect on investment decisions in these businesses. As a result of poor tax planning practices small firms are not in a position to utilise fully all available tax reduction mechanisms. Instead they have to rely on mechanisms that can be decided upon after the accounting year end; unfortunately these involve the withdrawal of money from the business (eg pension schemes, salaries/bonuses). The results presented in this paper illustrate that the decision concerning the level of pension fund contributions and drawings/salaries, and subsequently the level of retained profits, will depend on both financial (business needs and market characteristics) as well as non‐financial (management characteristics) factors. However, the present combination of these factors in the small business sector favours the extraction of profits out of the business rather than the reinvestment of profits that will enhance the creation of wealth and employment. Based on the beliefs and expectations of small business owner/directors a number of tax incentives are discussed that the government could introduce in order to enhance the financial development and prosperity of small firms.
Young People’s views of business support: the case of PSYBT
Authors: Moran Paul , Sear Leigh
Published: April 2004

The phenomenon of “youth enterprise” arose in the 1980s in response to a particular combination of socio‐economic and political factors. Since then, increasing numbers of young people have set up their own businesses with the assistance of organisations such as the Prince’s Youth Business Trust, Livewire and the Prince’s Scottish Youth Business Trust (PSYBT). This study draws on the experiences and views of a number of recipients of support from PSYBT, who are currently in business, to assess the value of the support provided, identify possible improvements, and, in general, develop greater insights into how young people can be assisted to develop their businesses. The results of the survey indicated a generally high level of satisfaction with the support provided by PSYBT and with the aftercare counsellor. There were, however, expressions of dissatisfaction from some respondents and a number of potential areas for improvement were identified. These primarily related to the skills, knowledge and attitude (ie “competence”) of the aftercare counsellor which could be addressed through enhanced recruitment, induction, supervision and continuing training and development processes. These results have implications for the way that support is delivered to young people in business and, in particular, the training and development of business counsellors playing an “aftercare” role to support the survival and development of the business over time.
Exploring the formation of entrepreneurial teams: the key to rapid growth business?
Authors: Vyakarnam Shailendra , Jacobs Robin , Handelberg Jari
Published: April 2004

There is ample anecdotal evidence, as well as an emergent body of literature, which examines the role of entrepreneurial teams in the success and growth of businesses. Earlier research by the authors has demonstrated that the core competence required by founding entrepreneurs is the ability to build and manage relationships. Their more recent work suggests that this core competence must be based around a clear vision for the business. In other words, the founding entrepreneur must be able to build a team to deliver the business vision. A review of literature is provided in this paper, offering a definition of the concept and some of the core issues that have to be addressed by entrepreneurs and small firm policies if businesses are to continue growing. This is supported by some preliminary findings from empirical research into how entrepreneurial teams are formed. The paper continues with propositions that can lead to further research in this relatively unexplored field.
A problem‐based phenomenological growth model for small manufacturing firms
Authors: Poutziouris Panikkos , Binks Martin , Bruce Alistair
Published: April 2004

The development of small firms tends to follow certain growth patterns usually referred to as business growth models. This paper reports on the conceptualisation of a “problem‐based phenomenological life cycle model”, which delineates the growth pattern of micro and small manufacturing firms in Cyprus. The empirically validated model offers guidance to small business managers, financiers and advisers as to the challenges and growth complexities accompanying the transitions taking place in small businesses as they develop along their organisational life cycle. Enhanced understanding of the barriers to the development of small business contributes to the better design of policy initiatives that seek to foster the survival, sustainable growth and prosperity of small enterprises.
University spin‐offs and local business support infrastructure in a post‐socialist economy
Authors: Muent Holger
Published: April 2004

This paper compares formal and informal modes of cooperation between SMEs in the post‐socialist transitional economy of Poland. It describes how small firms in a university environment utilise their networks of social relations to cope with some of the problems typical for SMEs in a post‐socialist transitional economy. Moreover, the paper gives a brief account of how successful similar firms are supported by the newly developing business support infrastructure. The data for this paper derive from a larger PhD project on networking in a transitional economy and are based on semi‐structured interviews with entrepreneurs and representatives of organisations who were selected using the snowballing method. The paper looks at two groups of firms that were established by academics from technical universities in two western Polish regions. It compares these structures with formal policy initiatives in the two regions, which aim to support similar firms. The evidence shows how personal contacts remained both between the technical universities and the firms as well as between the individual firms. The use of these interpersonal relations can lead to an effective means of knowledge transfer between universities and the business sphere and can also serve as problem‐solving mechanisms for the small business. The organisation of the business support infrastructure, on the other hand, seem to be rather unsuccessful in addressing the problems of such university spin‐offs. The problems of acceptance and credibility that these bodies encounter are mainly rooted in the reluctance of private entrepreneurs to get involved with public or quasi‐public institutions, which in turn is a result of socialist legacies.
Determinants of management development in small businesses
Authors: Thomson Andrew , Gray Colin
Published: April 2004

This paper examines statistically the determinants of management development in small businesses, based on the results of a survey of 389 small businesses carried out in 1996. Generally, the immediate issues concern the factors that influence the development of owners and managers of growing and sustainable small businesses, considered by many to be the source of future innovation and jobs in both developed and developing economies. More particularly, the survey is part of a wider investigation into management development in Britain, and the paper parallels a previous analysis of statistical determinants based on a survey of larger businesses. While entrepreneurship has received a lot of attention in small business research, comparatively little attention has been paid to the development of management competencies in small firms. In the study reported here, regression analyses were used to develop a more detailed understanding of the factors which shape the amount and nature of management development in small businesses. The key research questions, in line with the previous analysis, are: (1) what are the relative importance of environmental and structural factors on the one hand, and strategic factors such as internal management development policy on the other, in explaining the amount and value of management development activity? (2) what does this tell us about the degree to which management development is determined by choice or circumstance? (3) what are the “drivers” of management development and their relative significance? (4) what factors are most influential in assessing the achievement of management development objectives?
Family firms in Scotland and Northern Ireland: an empirical investigation
Authors: Cromie Stan , Adams John , Dunn Barbara , Reid Renee
Published: April 2004

Family firms account for around 75 per cent of all business enterprises in the UK, but there is a lack of research on these businesses. The family firms literature recognises that there are differences between family and non‐family businesses; differences that can be explained by conflicts between a juxtaposition of family values and business values. Consequently, family firms tend to have different approaches to ownership and control, the composition of boards, employment practices, strategy formulation and succession management. This paper reports on the demographic characteristics, ownership configurations, boardroom arrangements, managerial and succession practices of a random selection of 1,065 family firms located in Scotland and Northern Ireland. Results reveal that the firms are well‐established, privately owned, small businesses in which the lead family retains almost all shares and dominates the board of directors. These firms give some preferential treatment to family members in employment and managerial matters but business objectives are not ignored. In keeping with previous research, succession matters are not regularly discussed and much more needs to be done to allow for a smooth transition from one family generation to another. The authors conclude by arguing that there is an urgent need for policy makers to address the problems and needs of small family firms and to develop frameworks and practices for assisting these businesses.
IT adoption strategies: best practice guidelines for professional SMEs
Authors: Proudlock Mark
Published: April 2004

This paper discusses information technology (IT) assessment and adoption in small firms. More specifically, it evaluates different approaches to IT assessment and adoption undertaken in professional SMEs, focusing on four professions: architecture; dentistry; law; and veterinary science. Adoption variables examined include: IT planning; choice of IT implementation strategy; the employment of external support; and investment in IT training. The study draws on survey data from over 260 firms in order to evaluate which approaches to IT assessment and adoption add most value in terms of the impact of IT upon the organisation. The research also identifies barriers to effective IT assessment and acquisition, and how these might be overcome.
Entrepreneurship education: Alumni perceptions of the role of higher education institutions
Authors: Carter Sara , Collinson Elaine
Published: April 2004

This paper is concerned with the retrospective perceptions of alumni towards the general provision of entrepreneurship education in higher education institutions (HEIs). Whilst many HEIs provide some form of enterprise training for their student population, relatively few have considered extending this provision to their alumni community. In addition to exploring retrospective perceptions, the research sought to ascertain the current level of entrepreneurial behaviour and the future entrepreneurial ambitions of alumni, and attempted to determine the demand for post‐qualification entrepreneurship training among HEI alumni. The results are encouraging, in that they demonstrate a keen interest amongst alumni in entrepreneurial activities. The main constraints to setting up in business were perceived to be the generation of a viable idea and the lack of both finance and experience. Respondents believed that HEIs should provide a more practical grounding for graduates, specifically citing financial management and business communications skills as key elements missing from the undergraduate curriculum. There was a consensus that HEIs have an important role to play in providing alumni with both formal post‐qualification training and social support networks to encourage entrepreneurial activity.
Small firms and economic development: research, policy and practice
Authors: Henriksen Lone
Published: April 2004

This paper is a summary of the text of a keynote presentation delivered to delegates at the Ninth Annual Small Business and Enterprise Development Conference on 23rd March, 1999. With no real change or reduction in sight for the 17 million European Union citizens who are currently unemployed, a major concern of the European Commission is to develop policies which will encourage and foster employment opportunities. However, a significant problem, especially for the long‐term unemployed, is to ensure that they are equipped with up‐to‐date skills and knowledge to meet the challenges facing the European economy in the 21st century. It is generally accepted that small and medium‐sized firms have a major contribution to make to both economic development and, in turn, reducing unemployment. SMEs demand a skilled and flexible workforce and the European Commission recognises the need for policies which facilitate the development and continuous updating of workforce skills. Current European Union initiatives recognise the importance of integration and interdependency across member states but also recognise, and indeed emphasise, the role and contribution of local initiatives. These initiatives are enshrined in the European Employment Strategy which is founded upon four key priorities; employability, entrepreneurship, adaptability and equal opportunities. The creation, development and implementation of policy is based upon sound analysis which necessarily demands high‐quality applied research. This is an area in which academic institutions, in particular, can, should and do make a significant contribution. Currently, there is a need for further research across a broad spectrum of initiatives ranging from basic research covering topics such as enterprise demography through to broadening definitions of entrepreneurship and enterprise. A significant proportion of this work is, and will continue to be, supported and coordinated by the European Commission. Information sources describing the fundamental requirements and needs are available on the Internet.
The standardisation versus adaptation decision of “successful” SMEs: findings from a survey of winners of the Queen’s Award for Export
Authors: Crick Dave , Bradshaw Robert
Published: April 2004

This paper reports the findings from a postal survey investigating selected characteristics of winners of the Queen’s Award for Export, arguably the premier award for export achievement in the UK. It focuses on one part of the study, namely the extent to which standardisation or adaptation of firms’ international marketing strategies takes place and the research undertaken to arrive at this decision. Based on a sample of 180 firms which were primarily small and medium sized, this study offers a contribution to the literature, and advice to owner‐managers, since it provides empirical evidence of particular aspects of “successful” SMEs’ export strategies. Specifically, in learning from the practices of their successful industrial counterparts, results are presented which support the need for SMEs to undertake research and adapt their export strategies in line with the local requirements in export markets.
Management training and development in small and medium‐sized enterprises: an assessment of the effectiveness of training and enterprise councils in the East Midlands
Authors: Boocock J.G. , Loan‐Clarke J. , Smith A.J. , Whittaker J.
Published: April 2004

This paper presents findings from a major research study investigating management training and development (MTD) activity within small and medium‐sized enterprises (SMEs) in the East Midlands. Despite the fact that the academic evidence linking training and development with business performance remains inconclusive, the previous UK Government clearly signalled the importance of improving skills levels to promote business success. The Training and Enterprise Councils (TECs) are charged with a key role in stimulating MTD activity within SMEs, a sector where MTD has traditionally been given a low priority. The system of government‐backed support for SMEs is currently under review, and the continued existence of the TECs in their present form largely depends upon their ability to provide proactive, tailored solutions to local business needs. It is, therefore, an extremely opportune time to review the TECs’ performance. Based on detailed analysis of the activities of six TECs in the East Midlands, the paper examines how they define MTD, establish the MTD needs of SMEs within their respective catchment areas, and formulate appropriate strategies to meet those needs. The reasons why generic MTD products are not generally taken up by SMEs are explored; supply‐side obstacles hinder the promotion of generic products by the TECs and demand is constrained as owner‐managers are reluctant to adopt such initiatives, although the boundaries between these two sets of factors are blurred. After reviewing the ways in which the TECs evaluate their activities, the paper concludes by offering some recommendations as to how the TECs could increase the take‐up of MTD by SMEs and improve the targeting of SMEs for assistance.
Information technology in the small business: establishing the basis for a management information system
Authors: Smith Julia
Published: April 2004

This paper reports on the importance and use of information technology in a sample of 150 new small firms. It provides statistical evidence to show that the greater the use of IT, the higher the firm’s performance. By contrast, the owner manager’s belief in the importance of IT to the management of their business is not correlated with performance. Empirical evidence is then presented to confirm that IT use is increasing, in general, year on year, and is being implemented as a management information tool. Finally, a profile is presented of the typical components of a young management information system, within the context of a management accounting framework. It is suggested that, given the proven importance of IT to the new small firm, a management information system should be developed that takes advantage of the opportunities offered by new technology, and that this, in turn, should lead to enhanced performance.
Small business training and development in the United States
Authors: Fernald Lloyd , Solomon George , Bradley Don
Published: April 2004

Fifty eight per cent of reporting companies have a shortage of skilled workers and 64 per cent of manufacturers believe entry‐level workers lack the necessary skills to positively impact their company. The most recent reports estimate that employers spend around one per cent of payroll on training. Lack of investment in training is an often‐cited reason why companies in the USA. are losing market share to foreign competitors. This study provides data regarding the extent to which training is conducted, formally and informally, in a sample of small businesses. According to the results of the study and a review of current literature, employees need training in a variety of areas and are not receiving adequate training in today’s small business environment. The study specifically includes information with respect to: (1) the types of training that small business owners believe they need to be more successful; (2) the various training methods currently used in training both employees and managers; and (3) the primary training resources used by the small businesses. The study was intended not only to determine what is happening in training and development in small businesses, but also to make owner‐managers more aware of the importance of training to their long‐term success. If owner‐managers of small businesses worldwide both read and apply the results of the study to their own individual small businesses, they could be expected to increase the level of their training programmes and change their overall attitude towards the importance of training.
Public law status Chambers of Commerce: does Britain need them?
Authors: Fallon Grahamme
Published: April 2004

There have recently been considerable changes in the British Chamber of Commerce system, leading to the creation of a network of Approved Chambers and Chambers of Commerce, Training and Enterprise (CCTEs). However, the question of whether British Chambers of Commerce should move further towards the dominant Chamber model of mainland Europe, based on public law status, continues to be debated in academic and practitioner circles. This paper assesses the case for and against such a move, in order to contribute to the understanding of the likely impact of recent changes and possible future reforms to the British Chamber system. Various aspects of British, French and German Chambers are discussed, compared and contrasted in order to consider whether a move to public law status on the part of British Chambers would be in Britain’s best interests.
Owner‐manager learning in small firms
Authors: Down Simon
Published: April 2004

The purpose of this paper is to review the relevant literature concerning the skills and knowledge of owner‐managers in small firms and to show how these might be enhanced and made more effective through alternative transferral and “teaching” strategies. It is shown that small firms are not isolated from their environment and are interdependently and inexorably linked with other organisations (suppliers, for instance). In this environment, and through these relationships, the majority of owner‐manager learning takes place. The implications for owner‐managers and the support environment are explored and recommendations for further research to explore the empirical reality of owner‐manager learning are presented.
Factors in the growth of micro‐enterprises (Part 1): developing a framework
Authors: Perren Lew
Published: April 2004

This research examines micro‐enterprises pursuing gradual growth. While very little research has been targeted specifically at the growth of micro‐enterprises, there are a host of possible influencing factors suggested by the rather broader small business literature. Less research has attempted to integrate the factors that influence growth of small firms into some form of model. Those models that were found had a number of shortfalls when it came to understanding the development of micro‐enterprises. A framework has been developed through this research that addresses these shortfalls. First, it has targeted specifically gradual growth micro‐enterprises; secondly, it is rigorously under‐pinned through empirical research; thirdly, it attempts to comprehensively cover the range of factors that influence development; fourthly, it focuses on the complex interaction of factors that may influence development. The research findings and implications are presented in two parts. Part 1 develops an empirically verified framework that explains how growth is influenced by a myriad of interacting factors. This leads to a discussion of the policy implications of the framework. Part 2 is presented in the next edition of the Journal of Small Business and Enterprise Development (JSBED) and will explore the managerial implications of the framework. This will provide a diagnostic toolkit to help micro‐enterprise owner‐managers and advisers pursue growth. The paper is derived from research conducted initially for the submission of a PhD thesis at the University of Brighton (Perren, 1996).
University counsels small “split firms” in post‐communist country
Authors: Lucki Zbigniew
Published: April 2004

The transition from centralised to market economy created a number of difficulties for Polish enterprises and many of them went bankrupt, especially after the Soviet market had been lost. While large companies, such as steelworks, coal mines, railways, etc, have been protected by the government for social reasons, the small and medium enterprises (SMEs) could survive only when they, by themselves or with some external assistance, were able to introduce internal changes and adjust to the market environment. Polish SMEs may be divided into two groups: emerging private firms and split firms which were created by a partition of large state‐owned enterprises. The various reasons for failure are discussed for both groups and compared with those described in the literature. A general model of consultancy intervention is presented and the attitudes of Polish enterprises towards change are described. In general, the state‐owned and split firms are reluctant to change unless their situation is critical, and if restructurisation is done it is rather superficial. Thus, a successful consultant has to be not only convincing and flexible but also must assess how deep a change is wanted by a given enterprise. This paper presents the approach used in helping the split firms by the University of Mining and Metallurgy (UMM), Faculty of Management Consulting Group. In order to find solutions for a given firm, a working team consisting of representatives of an enterprise and university was set up. The team devises a strategy of enterprise survival and prepares a detailed plan of the steps to be taken. This approach, which in many cases has proved to be successful, consists of trying to infuse the employees with the philosophy of enterprise survival and organising a series of relevant training activities. When the employees fully understand the essence of all the actions necessary for enterprise survival (privatisation, improvement of marketing, creation of systems of motivation, quality control, management information and other), the consulting group’s role as “company doctor” is limited to the supervision of the change planning process and the assessment of the solutions chosen. This system of triggering employee initiative has been found to be not only effective but also cheap, an aspect which in the case of small enterprises should not be underestimated.
Assuring consultant quality for SMEs – the role of Business Links
Authors: Tann Jennifer , Laforet Sylvie
Published: April 2004

The British Government instituted a new direction for small business support in 1992 with the establishment of Business Links. These are intended to coordinate assistance through locally integrated business support services. Business Links have been the subject of several evaluative studies, one of which was particularly critical, besides being the focus of comment in the business press. In particular, Personal Business Advisers (PBAs, who are usually employees of BLs) have been subjected to scrutiny; concern being expressed about the extent to which PBAs’ recommendations are acted upon. Much of the specialist consultancy is provided by self‐employed persons under contract for particular projects. This paper focuses on the self‐employed consultants who undertake specialist Business Link‐supported work within SMEs. While most business Links have role and job descriptions for PBAs, this is rarely the case for consultants. Self‐employed consultants are generally accredited by BLs themselves or by third parties. Accreditation procedures could be improved; clear criteria are required for monitoring consultancy processes and outcomes, and consultants need to receive feedback. There are opportunities for closer contact between self‐employed consultants and Business Links which would improve the quality of the service to SMEs, the learning of individuals and the organisational learning and public accountability of Business Links.
Policy, prediction and growth: picking start‐up winners?
Authors: Freel Mark S.
Published: April 2004

Based on a number of detailed, in‐depth, cases selected from 30 face‐to‐face company interviews and placed in the context of the literature, this paper will argue that targeted financial support of start‐ups, the notion of “picking winners”, is not a viable alternative to blanket cover. These selected cases serve to illustrate the complexity and variability of small firm development which, in turn, negates the validity of pre‐start predictive modelling for this sector. The paper will proceed to argue, on the basis of the evidence, that, since the form which an organisation takes and the ability of an entrepreneur to manage within the given environment are, to a greater extent, dictated post start‐up, only then can firms with significant growth potential be identified. Thus, since a firm’s true form and promise is uncertain pre‐entry, any criteria used to isolate those with the greatest potential will be, at best, arbitrary.
So much opportunity – so little take up: the use of training in smaller firms
Authors: Marlow Sue
Published: April 2004

This paper discusses the utilisation of employee training and development initiatives in the UK focusing specifically upon the smaller firm. It is argued that to assess and evaluate differing levels of investment in employee development, it is essential to take account of firm size, firm sector and the overall market/economic environment. Furthermore, assessment of such variables is essential when developing appropriate and accessible training initiatives. Evidence from a small empirical study is presented which suggests further investigation into the interaction of such variables and their consequent influence upon utilisation of training and development programmes would be warranted.
Business Link impact and future challenges
Authors: Summon Parminder
Published: April 2004

The publication, in October 1997, of the Government’s Business Link “Vision Statement” which announces 18 separate action points to enhance the Business Link service, demonstrates that Business Links still have some way to go before they are considered to be truly effective. This paper contributes to the debate about Business Link effectiveness by assessing the evidence of Business Link impact from a number of recent studies. The studies show that Business Links are beginning to make a positive impact but it is more difficult to analyse the extra value they are adding to SME growth. There is still some confusion about the Business Links target market – should they concentrate solely on established small firms with growth prospects or offer all their services to start‐ups and micro businesses as well? In some respects, Business Links themselves are going through the typical development stages that many SMEs go through in their establishment. Business Links can learn how different growth stages affect company development from this process. Business Links will only succeed in their mission to assist small firms if SMEs are attracted to using them. The main challenge facing Business Links is to move towards a private sector locally led orientation, as opposed to previous initiatives which were largely national and public sector led. There are elements of a virtuous circle in the SME/Business Link relationship which can be exploited to encourage both business excellence and Business Link improvement. Bus9ness Links will achieve greater impact through effective partnership but this can only happen if partnerships are well balanced with no one partner dominating.
The Shell Technology Enterprise Programme: benefits reported by students and “host” employers
Authors: Westhead Paul
Published: April 2004

To assess the short‐term effectiveness of the Shell Technology Enterprise Programme (STEP), students and “host” employers who participated in the programme in 1994 were interviewed prior to and 12 months after completing the programme. The short‐term benefits of the programme for participating undergraduate students and independent “host” businesses are highlighted. The long‐term implications for Shell UK Limited and the wider policy community are discussed.
Small firm success and the art of orienteering: the value of plans, planning, and strategic awareness in the competitive small firm
Authors: Hannon Paul D. , Atherton Andrew
Published: April 2004

There is an ongoing debate within the academic literature about the value of the business plan in the development of the small firm. On closer inspection of the research, there appear to be clear benefits in the use of business planning as a process within the smaller business. This is in contrast to the production of a business plan as an output focused predominantly on convincing and acquiring resources from other organisations and individuals. As a process, business planning can be both formal and informal. It is also focused on understanding and responding to the context within which the business operates. Strategic awareness capability, as both a bundle of activities and a core competence, helps to make sense of this context, and serves as a means of managing interactions between the firm and its environment. It also allows for a more sensitive reading of the limitations and strengths of the planning process in markets that are, for the small business, generally unpredicatable and complex. When combined, strategic awareness capability and planning effectiveness can be used to develop a typology of business types that provides insight into the processes by which business development can be supported. In addition, strategic awareness capability can be considered a core competence of the small business and conceptualised in terms of different levels of experience, and expertise. As a result, small firms with varying levels of experience face different challenges and needs when using and developing strategic awareness capability.
Are support providers meeting the export information requirements of ethnic minority‐owned SMEs?
Authors: Crick Dave , Chaudhry Shiv
Published: April 2004

Although the need for many ethnic minority‐owned firms to obtain information to enable them to “break‐out” of their cultural niches and enter mainstream markets has been proposed within the small business literature, it has been widely reported that policy makers and other information providers have a limited understanding of particular operations within certain groups of ethnic minority‐owned firms. This has resulted in an academic argument concerning how best to meet the needs of particular groups of firms in order to reduce the ineffective provision of information and other support activities by these organisations, and the negative perceptions of these bodies from firms within the ethnic communities. In placing this argument into an international context, this study provides empirical evidence concerning the perceived usefulness of sources of export information together with types of data required by groups of Asian and indigenous (white)‐owned small and medium‐sized enterprises (SMEs) in the UK. Findings are primarily based on a large scale sample of UK firms and MANOVA is employed to establish that statistical differences exist between the groups of SMEs. Also reported, are selected findings from a series of in‐depth interviews.
New venture support: an analysis of mentoring support for new and early stage entrepreneurs
Authors: Deakins David , Graham Linda , Sullivan Robert , Whittam Geoff
Published: April 2004

There has been little research on the processes of providing support to new firm entrepreneurs, and little evaluation of the provision of support to existing small firm entrepreneurs through advice, counselling or consultancy. Despite this lack of research, support for new firm entrepreneurs has been largely withdrawn in England and Wales with the focus of support, through Personal Business Advisers (PBAs), targeted at existing small firm entrepreneurs who employ more than 20 people and have the potential for growth. There are theoretical arguments that suggest support for new start entrepreneurs should be provided on a mentoring basis. If this is provided selectively, then this should have an impact on the management ability and confidence of such new firm starts. This paper reports the results of interviews with new firm entrepreneurs engaged in such a mentoring relationship. The research, undertaken in Scotland, suggests that such a relationship is beneficial. Given the high failure rates of new firm formation, such support could have wider application and benefits. It is suggested that, for certain regions, provision of new firm support can yield positive and worthwhile returns to public sector investment, particularly in a region such as the West of Scotland, characterised by a need to diversify its economy and raise the formation rate of new start small firms and entrepreneurs.
NFC: no longer functioning correctly?
Authors: Curwen Peter
Published: April 2004

NFC plc, as it is currently known, provides a unique case study because it embraces privatisation via a management and employee buy‐out (MEBO) as well as, until recently, majority employee share ownership. The initial sections of this article set out the circumstances surrounding the decision to privatise and the reasons why this was executed via a MEBO. It moves on to examine the reasons for the decision to float the company on the stock exchange in the mid‐1980s. This was a period when the initial structure of the company came increasingly into question, and the paper analyses the structural imbalances that arose as the company grew very rapidly and the tensions this created between the core values that underpinned the company’s initial success and the need to take a more “hard‐nosed’ approach if that growth was not to falter. Not only was the question of the most appropriate managerial “style” brought into question, but also whether institutional investors should be allowed to displace employee ownership. Another critical issue was whether the “internationalisation” strategy was an appropriate way for the company to trade its way out of trouble. The paper concludes that environmental factors have forced the company to evolve into something far more conventional than was either intended or desired at the time of the buy‐out.
Targeted support for new and young businesses: the case of North Yorkshire TEC’s “Backing Winners” programme
Authors: Smallbone David , Baldock Robert , Bridge Mike
Published: April 2004

This paper reviews the first year experience of a programme (Backing Winners), launched by North Yorkshire TEC in 1995 to provide support for new and young businesses with growth potential. The Backing Winners (BW) programme differs from previous schemes in that it is not restricted to clients who are unemployed, it provides access to some key business services (such as office services), and there is no grant offered to individual businesses. Delivery of BW is focused on Personal Business Mentors (PBMs) whose role is similar to that of the PBA in Business Links. Based on a survey of 144 clients businesses and interviews with representatives of each of the Enterprise Agencies (EAs) contracted to deliver BW, the conclusion is that it was successful during the first year of its operation. Clients were very satisfied with their PBMs and some were active users of group training and office services. The paper also considers a number of policy issues raised by the study. These include broad issues such as the extent to which there is a case for targeting support on new and young firms such as these, and the extent to which the operation of a selective approach at the start‐up stage involves “picking winners”. In addition, BW raises a number of delivery issues which include: the need for adequate resourcing to enable the workload of PBMs (or PBAs) to be compatible with effective delivery; the need to reconsider the use of freelance consultants as PBMs (or PBAs); the need to recognise that many small manufacturing firms have sector‐specific support requirements; the need to set performance targets to agencies contracted to deliver such programmes, which recognise differences between agencies and their catchments.
Feudal institutions and small business governance: an exploration and comparison
Authors: Mitchell Ronald K. , O’Neil Stephen J.
Published: April 2004

Decision‐making institutions evident in today’s small businesses display remarkable similarities to medieval feudalism. This paper presents: (1) the institutions of feudalism as applied to small business, (2) a theoretical framework as a foundation for explaining obvious parallels, and (3) propositions that furnish a basis for further research.
The DTI Marketing Initiative: the experience of 35 young Scottish companies
Authors: O’Brien Elaine M.
Published: April 2004

This paper reports on the results of empirical research undertaken among small Scottish companies who participated in the DTI’s Marketing Initiative. This scheme enabled many small firms to take advantage of expertise in all areas of business through a grant‐aided programme. The key objectives of the research were to understand better the attitudes held of marketing in the small firm sector in order to identify if there were perceived barriers in accepting marketing techniques to aid a firm’s development. Secondly, the research focused on the specific benefits derived from the Marketing Initiative in an attempt to identify the educational benefits of participating in such schemes. The research findings indicated that there were considerable attitudinal barriers to implementing marketing among the sample firms. They key issues were marketing being perceived as a costly, time consuming to manage, lacking relevant skills to implement marketing and lacking understanding of the relevancy of marketing to development needs. This was in addition to a general misconception of what being “marketing oriented’ actually meant. This general lack of understanding and misconception highlighted the need for such schemes to help in part overcome such perceptions. As for the benefits of the Marketing Initiative, the results were more encouraging, with all respondents perceiving the scheme and its aims as very worthwhile and relevant to their needs. Main benefits derived by participation in the scheme included a greater understanding of marketing and its relevance in the small firm, new market opportunities identified through expert research advice and a detailed plan of action to follow for future development.
Small businesses and information technology: risk, planning and change
Authors: Mitev Nathalie N. , March Anne E.
Published: April 2004

Some of the factors contributing to the risks SMEs take when implementing information technology were investigated in a questionnaire survey of 18 small businesses in the Greater Manchester area, complemented by interviews with the advisers working at the Greater Manchester Business Innovation Centre. New technology can seem a threat to small business owner‐managers and there is a link between business growth and the use of IT. There has been increased adoption of all categories of software, from databases, CAD‐CAM and presentation packages, to spreadsheets and communications software, but respondents expressed dissatisfaction with software, more than with hardware. There is a perceived lack of expertise in the planning process as well as the technology itself. Responses were split over loss of managerial control: SME owner‐managers want to remain in control, IT may be associated with growth, and some may resist growth. A strong need for impartial advice, independent from computer vendors, has been expressed, and a worrying number of respondents did not consider maintenance and training costs when purchasing technology. Organisational factors such as staff skill levels, familiarisation time, and the impact on jobs, were rarely considered prior to purchase. Opinions on training provision were divided. More complex IT‐related business and organisational changes may require integrated technical and managerial training, so that SMEs can become more strategically oriented and benefit better from IT.